Formula 1 making progress on cost cap but not there yet

Formula 1 has advanced further on its efforts to define an appropriate budget cap level for next season following an online meeting between F1's Chase Carey and Ross Brawn, FIA president Jean Todt and the teams.

The group came together on Thursday to resume its talks about lowering the cost cap threshold that will be introduced in 2021.

In the face of F1's economic downturn amid the global coronavirus crisis, teams unanimously agreed to lower the initial $175m ceiling to $150m. However, the sport's mid-field teams, led by McLaren have lobbied for a further reduction, with the Woking-based outfit pushing for a cut back all the way to $100m.

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Thursday's talks apparently converged towards a $145m limit for 2021 followed by a reduction to $130m in 2022.

However, Ferrari is reportedly the move, arguing that lowering the cost cap threshold below $150m would force it to lay off even more personnel in Maranello, which in turn would pit the Scuderia against Italy's very restrictive unemployment laws.

The concept of a two-tier cap between Mercedes, Ferrari, Red Bull and F1's remaining seven teams has been rejected.

However, a handicap system has been tabled: the scheme would limit a team's aerodynamic development according to its position in the previous year's championship, with front-running outfits more restricted than those finishing at the lower end of the standings in their use of wind tunnel time and CFD work during the following campaign.

Despite Ferrari's continued opposition to a budget cap cut back, ongoing talks "were going in the right direction" according to an insider quoted by the BBC.

Another video conference meeting between the parties is scheduled for next week.

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