Ferrari draws ire of rivals over budget-cap stance

Ferrari has said that it will not accept any further reduction in Formula 1’s proposed budget cap, and hinted that any progress in that direction could mean it enters additional racing series.

Amid growing tensions between Ferrari and rival teams about the scale of a reduction in the $175million budget cap coming into force next year, the FIA then stepped into the debate by making it clear that under certain circumstances it could now accept majority approval for rule changes.

Up until now, the terms of F1’s International Sporting Code meant that any changes for 2021 made at this stage required unanimous support from the teams. But in light of the impact of the coronavirus pandemic and growing fears about the financial impact on competitors, the FIA has given itself the power to step in and make changes with majority support, if it feels that such tweaks “safeguard” the championship.

A new updated clause in the Sporting Code regarding rule changes states: “In exceptional circumstances, and if the FIA considers that the change in question is essential for the safeguarding of the Championship, cup, trophy, challenge or series concerned, the agreement of the majority of the Competitors properly entered shall suffice.”

A budget cap of $175million set before the coronavirus crisis was accepted as being too high, and there had been a consensus on a revised figure of around $150m. Following that, there were teams in favour of more dramatic reductions – something some big teams do not favour because it will force them to make widespread job cuts.

One idea discussed was to set the level at $145m next year, and then reduce it to $130m for 2022, but that proposal did not get unanimous approval.

Ferrari team principal Mattia Binotto (above) insists that the $145m is the minimum his team could accept. “The $145m level is already a new and demanding request compared to what was set out last June,” he told The Guardian. “It cannot be attained without further significant sacrifices, especially in terms of our human resources. If it was to get even lower, we would not want to be put in a position of having to look at other further options for deploying our racing DNA.”

Ferrari favours a two-tier cost cap solution, where manufacturer teams, or those supplying customers with car parts, are allowed greater spending than others. But it is an idea that has not won universal support, as Mclaren currently favours a budget cap as low as $100m, and fears anything more puts the existence of teams at risk.

Mclaren boss Zak Brown has accused Binotto of “living in denial” and says that his comments “don’t stack up”.