F1 bosses to set $145m cost cap and share wealth

Formula 1 teams will have to reduce their spending even further next year as organisersattempttoavoid the “tragedy” of losing any marque during the coronavirus pandemic.

F1 managing director Ross Brawn has revealed the cost cap for the 2021 season is set to be cut to $145 million (about £117m) and could fall further in subsequent years. Prize money will also be more evenly distributed to ensure the sustainability of the competition.

A $175m cap on race car performance spending was set to be introduced next year in a new rule designed to make F1 more competitive and put a lid on increased spending.

But talks on altering the figure have been held with thefia,motorracing’sgoverning body, in the wake of the Covid-19 crisis.

F1 managing director Ross Brawn told Sky Sports: “There has been a lot of consultation and we are in the final stages. We’re going to start with a cap of $145m and then the discussion is how much further down we can drive costs in the next few years.

“There is going to be a much more equitable prize fund in the new agreement. The midfield teams in particular are going to be much better off in terms of their proportion of the prize money.

“So a good midfield team should be able to score podiums, maybe a win, and should be able to show a small profit.”

Attempts to impose a lower budget cap have proved a thorny issue, with Red Bull, Mercedes and Ferrari already spending more than double annually the $175m cap that had been due to come into force in 2021.

Brawn added: “It has become very clear, from talking to the management of the teams. The message is clear. We’ve got to cut costs and have a reduction of the cost cap.

“We will judge at what level we should support the prize fund over the next six to 12 months because obviously we want to keep the line-up. If we lose some teams in this period it would be a tragedy.”