zzdcar
Home
/
Reviews
/
Racing
/
Formula One's New Budget Cap Could Start As Early As 2019: Report
Formula One's New Budget Cap Could Start As Early As 2019: Report-May 2024
2024-02-19 EST 22:11:18

Formula One is considering a budget cap to level the playing field among its big-budget and smaller teams, and leaked details obtained by show exactly how they might do it. F1 wants to start testing out the cap in 2019. Notably, drivers’ and top managers’ salaries and marketing expenditures won’t be limited by the cap.

The specific amount of the budget cap is still to be determined, although Auto Motor und Sport cites €100 to 150 million ($116-174 million) as a possible amount, despite top teams pushing for €200 million ($232 million) at the least.

There won’t be any specific limits set on the numbers of staff hired or parts produced for cars, but it will be a fixed amount of money to spend for the season. This is a relief for larger teams, who were worried about employee limits forcing them to scale back their efforts exponentially.

Each team will get assigned an independent accountant based at their factory from the F1's governing body, the Fédération Internationale de l’Automobile, to keep track of their expenditures, who will be paid by the FIA, not the teams. Smaller teams have also been worried about large factory efforts like Mercedes burying F1 development costs on their road-car side, but an independent bookkeeper should alleviate some of those fears.

The 2019 test run for the budget cap won’t penalize teams for exceeding the budget limits if they go over. But it will provide some feedback as to whether the cap is realistic, or if it needs to be tweaked.

The FIA is expected to submit this proposal to teams on Tuesday, Auto Motor und Sport reports. The budget won’t be cold-turkey down to its final amount right away, but rather, introduced incrementally by the series.

Formula One has been split in recent years between smaller teams struggling to stay viable and near-unchecked domination by a handful of well-funded top teams. Thus, new owners Liberty Media have made it a priority to make things more equitable across the grid to give smaller teams a better shot.

Some of these measures aren’t sitting too well with the top teams who’ll have to give up certain privileges and financial advantages in order to keep the sport viable in the long-run. Ferrari, a front-running team who received nearly one fifth of F1's revenue distributed to teams this year, is notably if their higher-ups aren’t happy with Liberty Media’s new rules, which aim to make things more equal among the teams.

Additionally, some are unhappy about having to open up their books to an FIA accountant for fear of giving too much away about the development of their teams, Auto Motor und Sport notes. Yet teams based in England—which is most of them—already have to submit annual balance sheets to the Companies Register in London, so they don’t have a ton of room to talk on that point. Data from that register is easily accessible for a fee online.

[via ]

Comments
Welcome to zzdcar comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Racing
NASCAR Is Officially Moving To A Centerlocking Wheel Design For Its Next Gen Car
NASCAR Is Officially Moving To A Centerlocking Wheel Design For Its Next Gen Car
NASCAR has been testing an 18-inch alloy wheel combination on the Next Gen prototype for a few months now, and Monday series officials announced that the 2021 Cup Series cars would officially be running a center-locking single lug setup. This marks the end of an era in which NASCAR...
May 5, 2025
Coronavirus Has Cost Us The Top-Tier Race At The Grand Prix Of Qatar
Coronavirus Has Cost Us The Top-Tier Race At The Grand Prix Of Qatar
After the Geneva Motor Show surrounding the growing Coronavirus epidemic and Formula One and Formula E races in Asia have been as well, the top-tier season opener next weekend in Qatar has been canceled. In a released this afternoon, the Fédération Internationale de Motorcyclisme announced that the top tier...
May 5, 2025
Formula One Will Cancel A Race If Any Team Is Banned From Travelling
Formula One Will Cancel A Race If Any Team Is Banned From Travelling
In the lead up to the 2020 Formula One season, there has been a good deal of speculation in regards to how the looming threat of Coronavirus will affect the calendar. We’ve already seen the cancellation of the Chinese Grand Prix at the hands of the disease, and at...
May 5, 2025
The Last Le Mans For LMP1 Will Host A Record Low Six Cars
The Last Le Mans For LMP1 Will Host A Record Low Six Cars
The ACO dropped for the 2020 running of the 24 Hours of Le Mans on Friday, and it’s not exactly encouraging. While this race marks the end of the LMP1 era, which has produced some truly prodigious racing in the last decade, it’s going out on an extremely low...
May 5, 2025
Zandvoort Is The New Best Track On The Formula One Calendar
Zandvoort Is The New Best Track On The Formula One Calendar
The Dutch are incredibly good at creating works of art; masterpieces which will outlive their creators. They have done it again, into something totally unseen in the current Formula One calendar. I can only hope that others will appreciate it in its era, unlike the stunning beauty of a...
May 5, 2025
Here's What 550 Horsepower Should Sound Like
Here's What 550 Horsepower Should Sound Like
We are awash in production cars with 500 horsepower or more. So many we recently . What we found was that the power alone doesn’t necessarily make the car exciting; it’s easy for it to be smothered in sound deadening and weight. As a contrast, please enjoy this 1970...
May 5, 2025
Copyright 2023-2025 - www.zzdcar.com All Rights Reserved