Ferrari's Binotto in favour of two-tier budget cap system

©Ferrari

Ferrari boss Mattia Binotto is in favour of a two-tier budget cap system for 2021 that would consider the additional R&D costs supported by the sport's bigger teams.

Formula 1's long-waited cost-cutting measures will finally see the light of day next season. Furthermore, because of the sport's economic downturn amid the COVID-19 pandemic, teams have agreed to reduce the initial $175m spending limit to $150m, although F1's smaller outfits are lobbying for a further cutback to $100m.

But Binotto argues that F1's front-running outfits have significant research and development costs, while their smaller customer teams simply buy a certain number of parts and components from them.

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

At last Monday's video conference meeting between F1, the FIA and the teams, the Scuderia boss put forward the idea of a fair system that takes into account the additional expenditure incurred by the top teams.

"We are discussing with F1, the FIA and all the teams a budget cap reduction but we should not forget when doing the exercise some of us have different structures and different assets," explained Binotto in a vodcast with Sky Sports News.

"There are teams which are constructors, like Ferrari, and other top teams. We are designing, developing, homologating and producing each single component for our cars while other teams are customers so they buy some parts and do not have the same structure because they are not designing, developing and so on all the components.

"So I think when discussing a budget cap we should not forget the different situations and it is important that we find a common ground, somehow, that suits the different situations. Maybe the answer is not a single budget cap equal for all teams."

©Ferrari

Regarding budget-cap provisions, Binotto warned of an "emotional" over-reaction by F1 during the current crisis, insisting the sport must retain its competitive foundation.

"We should avoid really to be emotional at the moment," he added. "We know that we will face difficult situations, but we need as well to somehow maintain what’s the DNA, the essence of the F1, which is competition.

"So I think it’s important clearly to look, know the details, but make a rational decision which has been really based on the considerations and not emotions."

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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.