Formula 1's cost-cutting proposals approved by FIA

Ruben Hill
May 29, 2020

The World Motor Sport Council still had to give permission for this, but did so on Wednesday evening.

In 2021 F1 will introduce a new sliding scale for aerodynamic development and a $145 million budget cap for all 10 teams, which will be steadily reduced over the next five years.

The first of the big changes is to the budget cap.

Two months after the Australian GP was cancelled at the 11th hour, Formula 1 is on an extended hiatus with the team's losing an estimated $2m for every race missed.

A new cap of $145m (€132m) will be brought in for 2021, a significant cut from the initial plan to set the limit at $175m (€159m).

The sport's governing body this morning ratified a number of technical and financial regulations, with a budget cap of $219m to be introduced next year.

Second will have less time than third and so it will go with the team that is last in the Constructors' Championship granted more time to work on its auto than any other team. There have been months of hard work under difficult circumstances but it's great to see how, under the leadership of the FIA and F1, all teams pulled together to define the right actions to navigate through this crisis and work towards the future for a sustainable sport, that will enable all the teams to take part on a level playing field.

"While McLaren supports the cost-saving measures in general, we are pleased with the compromise to provide teams with enough aero freedom to retain the competitive element that is core to Formula 1 throughout 2020 and 2021, until the new technical regulations kick in for 2022", Seidl said.

'F1 has been financially unsustainable for some time and inaction would have risked the future of its participants, who are to be commended for resolving this issue collectively and determinedly'.

"Ultimately the fans win, and if the fans win, the whole sport wins too."

McLaren have signalled the way ahead by announcing earlier in the week that 1,200 jobs will go across the group, with 70 employees likely to be expended in F1 alone. We are supporting journalists and freelance writers impacted by the economic slowdown caused by #lockdownlife.

Other reports by Click Lancashire

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