Breaking news
Formula 1
Formula 1 set for $175m cost cap in 2021
A cost cap of $175m per year is set to be imposed on Formula 1 teams from the 2021 season – obliging big spenders Mercedes, Ferrari and Red Bull to trim their budgets.
Adam Cooper
Published: Jun 7, 2019, 7:15 PM
Copy link
Share on Viber
The number will be enshrined in the newly-created Formula 1 Financial Regulations, which will stand alongside the existing FIA Sporting and Technical Regulations.
Read Also:
The document has been put together by former Honda, Brawn and Mercedes financial boss Nigel Kerr. He was brought to the F1 organisation by Ross Brawn in 2017, and given the title of Finance Director, Motorsports, with a brief of creating a workable cost cap.
The $175m figure is seen as a compromise, as the original plan was to start with a higher number with a glide path down to a lower figure. It will be in place for the five seasons from 2021-25, although there is provision for an upward adjustment for inflation.
The figure does not include several key elements of team spending, notably driver salaries, marketing expenses and any costs associated with engines.
Estimates of what the big teams are currently spending on the areas that are included within the cost cap range from $220-250m, so the reduction is not insignificant – although the midfield teams had been hoping for a final number in the $150m range.
The F1 organisation is confident that spending can be policed successfully, and the regulations will allow for serious penalties for indiscretions, such as the loss of points. Team principals could also risk losing their FIA licences.
A "dry run" has been proposed for 2020, with teams invited to open their accounts for examination in the same way that they will from 2021, but without any regulatory requirements.
We want your opinion!
What would you like to see on Motorsport.com?
Take our 5 minute survey.
- The Motorsport.com Team
Read and post comments
Read also :
Share Or Save This Story
Copy link
Share on Viber
Previous article F1 bid to stop car changes will "open can of worms," warns Wolff
Next article Canadian GP: Leclerc quickest in FP2 as Hamilton crashes
Top Comments
There are no comments at the moment. Would you like to write one?
View More & Comment
More from
Adam Cooper
RB: Tsunoda “mentally on a different level” in 2024
Formula 1
Formula 1
Japanese GP
RB: Tsunoda “mentally on a different level” in 2024
Andretti planning F2 and F3 entries to promote US talent to F1 team
Formula 1
Formula 1
Andretti planning F2 and F3 entries to promote US talent to F1 team
Andretti F1 team formally opens new Silverstone facility
Formula 1
Formula 1
Andretti F1 team formally opens new Silverstone facility
Latest news
Colton Herta qualifies for F1 superlicence as Valtteri Bottas remains bullish on 2027 seat
Formula 1
F1 Formula 1
Sao Paulo GP
11 min
Colton Herta qualifies for F1 superlicence as Valtteri Bottas remains bullish on 2027 seat
F1 Brazilian GP: Lando Norris tops FP1 as Colton Herta clinches superlicence
Formula 1
F1 Formula 1
Sao Paulo GP
20 min
F1 Brazilian GP: Lando Norris tops FP1 as Colton Herta clinches superlicence
Kellymoss returns to IMSA WeatherTech championship full-time in 2027
IMSA
IMSA IMSA 21 min
Kellymoss returns to IMSA WeatherTech championship full-time in 2027
"Parked the truck in the paddock aged eight": Cairoli shares Kimi Antonelli anecdotes
DTM
DTM DTM 24 min
"Parked the truck in the paddock aged eight": Cairoli shares Kimi Antonelli anecdotes
Feature
Discover prime content
How F1’s rules got to be so complex
Formula 1
By Pat Symonds
How F1’s rules got to be so complex
Top 10 F1 cars of the 1960s
Formula 1
By Kevin Turner
Top 10 F1 cars of the 1960s
Subscribe and access Motorsport.com with your ad-blocker.
From Formula 1 to MotoGP we report straight from the paddock because we love our sport, just like you. In order to keep delivering our expert journalism, our website uses advertising. Still, we want to give you the opportunity to enjoy an ad-free and tracker-free website and to continue using your adblocker.
You have 2 options:
- Become a subscriber.
- Disable your adblocker.
Subscribe now Already subscribed? Sign in here
Already disabled your adblocker?
Reload page
Manage Alerts
Subscribe