Carey confident budget cap can be 'reliably' regulated

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Formula 1 chief executive Chase Carey believes the sport's budget cap that will be introduced in 2021 can be properly policed.

Formula 1, the FIA and the teams have agreed on a planned $175 million cost limit on which teams will need to operate in the future.

However, the cap excludes a series of significant items, including drivers' salaries, engine costs and marketing expenses.

Provisions shall be included in the future rules that will call for the application of penalties for those who breach the covenants.

It's unclear how the teams budget restrictions will be enforced, but Carey is confident the sport's legislators have devised a system that will work.

Carey: 'It makes sense for regs to mature until October'

"It took us a year to discuss this process through," Carey told Austria's Servus TV earlier this week.

"Not only to get a suitable limit, but also a process with which we can review it accordingly. Everyone can be sure that the cost structure is reliable.

"Our sport is complicated, but these tricks can be found in every business worldwide.

"The rules are clear; you need access to the information to make sure that this is done reliably, but I am confident that this can also be checked properly and reliably."

Regarding regulation, Formula 1 will undergo a "dry run" in 2020, with teams invited to open their books for a control and audit procedure but without any regulatory constraints.

"The plan is to carry out a test run by 2020. That won’t affect the budget limit yet, but at least the process of how we check information," Carey explained.

"Everyone should get a year to understand how it works. We want to see what the results are like.

"It will be a learning process, I am sure. We have no illusions. My guess is that we will refine the cost structure even further.

"We and the teams have to live with it, but we needed a starting point now and that is the beginning of a process that continues.

"We are again trying to create a sport that makes the competition better than it is today. It must be a healthier business for everyone involved."

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Phillip van Osten

Motor racing was a backdrop from the outset in Phillip van Osten's life. Born in Southern California, Phillip grew up with the sights and sounds of fast cars thanks to his father, Dick van Osten, an editor and writer for Auto Speed and Sport and Motor Trend. Phillip's passion for racing grew even more when his family moved to Europe and he became acquainted with the extraordinary world of Grand Prix racing. He was an early contributor to the monthly French F1i Magazine, often providing a historic or business perspective on Formula 1's affairs. In 2012, he co-authored along with fellow journalist Pierre Van Vliet the English-language adaptation of a limited edition book devoted to the great Belgian driver Jacky Ickx. He also authored "The American Legacy in Formula 1", a book which recounts the trials and tribulations of American drivers in Grand Prix racing. Phillip is also a commentator for Belgian broadcaster Be.TV for the US Indycar series.