F1 News, Reports and Race Results

F1 and teams agree to consider changes to budget cap for 2021

Formula 1 bosses and the teams agreed at a meeting on Monday to consider changes to next season's budget cap, with a two-tier cap system being debated.

From the original level of $175m, less exclusions, all parties had already agreed to cut the threshold to $150m to help teams deal with F1's economic downturn sparked by the coronavirus crisis.

But during yesterday's online meeting, which included F1's Chase Carey and Ross Brawn, and FIA president Jean Todt, F1's midfield outfits lobbied for a further reduction of the future spending limit to $125m.

The request came shortly after McLaren boss Zak Brown warned of the potentially devastating consequences of the coronavirus crisis on the well-being of the sport's weakest teams.

However, according to a report from the BBC, Ferrari and Red Bull are at odds with the proposal, with the Scuderia arguing that additional expenses are incurred by the bigger teams which cover the R&D costs of parts that are sold to smaller outfits, like the model that sees Haas buy all its components from Ferrari with the exception of its design's monocoque and aero parts.

Red Bull also supplies parts to Scuderia AlphaTauri, while Racing Point acquires its car's entire drive train from Mercedes.

It is believed therefore that a variable budget cap threshold could be applied, with a $150m limit granted to the bigger teams to help them cover the costs of supplying their parts and components, and a lower $125 ceiling awarded to the smaller teams.

Team bosses have agreed to debate the issue when they reconvene in a few days.

As a reminder, in order to help mitigate the financial impact of the current crisis on the smaller teams, F1 agreed to delay the introduction of next year's new regulations until 2022.

However, Red Bull recently tabled the idea of delaying the regulation overhaul to 2023, but that proposition was rejected at Monday's meeting by president Todt, although the teams agreed to revisit the idea later this year.

Gallery: The beautiful wives and girlfriends of F1 drivers

Keep up to date with all the F1 news via Facebook and Twitter

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.

Recent Posts

Las Vegas GP: Hamilton continues on top in second practice

Lewis Hamilton put Mercedes on top of the timesheets for the second time in Las…

56 mins ago

2024 Las Vegas Grand Prix Free Practice 2 - Results

Full results from Free Practice 2 for the Las Vegas Grand Prix at Las Vegas,…

58 mins ago

Leclerc confident Ferrari ‘has a shot’ at F1 Constructors’ title

Charles Leclerc believes that Ferrari has a genuine “shot” at beating rival McLaren to Formula…

2 hours ago

Komatsu: F1 teams united against Audi 2026 cost-cap offset

Haas team principal Ayao Komatsu has revealed that nine Formula 1 teams stand in opposition…

3 hours ago

Las Vegas GP: Hamilton leads Mercedes 1-2 in trouble-free FP1

Lewis Hamilton and George Russell led the field in a chilly but trouble-free first practice…

4 hours ago

2024 Las Vegas Grand Prix Free Practice 1 - Results

Full results from Free Practice 1 for the Las Vegas Grand Prix in the United…

4 hours ago