Formula 1
Formula 1
R
Emilia Romagna GP
18 Apr
Race in
43 days
R
Portuguese GP
02 May
Race in
57 days
09 May
Next event in
60 days
23 May
Race in
78 days
R
Azerbaijan GP
06 Jun
Race in
92 days
13 Jun
Race in
99 days
27 Jun
Race in
113 days
04 Jul
Next event in
116 days
18 Jul
Race in
134 days
R
Hungarian GP
01 Aug
Race in
148 days
29 Aug
Race in
176 days
05 Sep
Race in
183 days
12 Sep
Race in
190 days
26 Sep
Race in
204 days
R
Singapore GP
03 Oct
Next event in
207 days
10 Oct
Race in
218 days
R
United States GP
24 Oct
Race in
232 days
31 Oct
Race in
239 days
R
Australian GP
21 Nov
Race in
260 days
R
Saudi Arabia GP
05 Dec
Race in
274 days
R
Abu Dhabi GP
12 Dec
Race in
281 days

Cost cap the "cornerstone" for potential new F1 teams

Formula 1 CEO Chase Carey says he's been talking to potential new teams who stress that the cost cap and other financial changes for 2021 are "cornerstones" in terms of any future decision to enter the sport.

Cost cap the "cornerstone" for potential new F1 teams

A cost cap of $175m has been agreed for 2021, not including items such as marketing costs and driver salaries, and the number is fixed and not part of the ongoing negotiations about future rules.

In addition, there will be a redistribution of income.

Read Also:

Carey says that potential new entrants have made it clear that F1 has to provide a healthy business model if they are to come on board.

"Clearly one of the goals in terms of the cost cap is to create a healthier sport," he said in a call with Wall Street analysts.

"We've talked about the competitive goals, but it is equally important that the cost cap creates a business model that is healthy and growing and positive for our existing teams, and potential new teams coming into it.

"That has been enforced as we've had discussions with potential new teams. All have looked at steps in terms of cost discipline, and probably a more balanced revenue distribution as being cornerstones to creating what they think is an exciting opportunity."

Carey insists that despite initial scepticism, the existing teams have embraced a limit on spending.

"One of the real positives is the evolving attitude towards it. We feel quite positive about where we are with the cost cap. In many ways teams, some of whom had issues or concerns going in, are increasingly supportive.

"By and large right now the support is quite broad, I think everybody believes it's an important element to the future of the sport, so I do think of the support it's built, and the teams really are behind it, as being an important cornerstone to building the sport going forward."

Carey remains confident that F1 and the FIA will be able to properly police the cost cap.

As previously reported the planned checks on spending will be tested with all the teams in 2020, although no actual cap will be in place.

"We wouldn't have done it if we didn't think it was enforceable," said Carey. "There's no reason to head down a path.

"You can account for everything, what you really need to make sure is that you have access to the right information to do the accounting, and that's just about us being disciplined and firm about what we need.

"We've addressed that. We're going to use 2020 – all the teams will participate in what I guess you could call effectively a dry run.

"The cost cap won't actually be enforced with consequences until 2021, but in 2020 what we really are actually going to go through is shaking out the bugs of accounting for the costs."

Regarding the exclusion of areas such as marketing from the $175m figure he said, he said: "What we're really looking to do is make the racing on the track more about how well you spend your money, not how much you spend.

"To the degree that there are marketing initiatives or other efforts like that, I don't think they affect the competition on the track.

"The focus on the cost cap is really to make the action on the track, and the unpredictability and drama on the track, much better, and make it a healthier business for the teams."

Read Also:

shares
comments
Formula 1 posts slight revenue increase compared to 2018

Previous article

Formula 1 posts slight revenue increase compared to 2018

Next article

Mexico extends Formula 1 race deal until 2022

Mexico extends Formula 1 race deal until 2022
Load comments

About this article

Series Formula 1
Author Adam Cooper
The updates Williams hopes will lead to a point-scoring return Prime

The updates Williams hopes will lead to a point-scoring return

After producing a car which demonstrated progress but lacked the points to prove it last year, Williams starts its new era of team ownership with the FW43B, its bid to continue the climb up the Formula 1 grid in 2021

How Ferrari plans to recover from its 2020 F1 nightmare Prime

How Ferrari plans to recover from its 2020 F1 nightmare

The 2020 Formula 1 season was Ferrari's worst for 40 years as it slumped to sixth in the standings. A repeat performance will not be acceptable for the proud Italian team, which has adopted a notably pragmatic approach to forging its path back to the top

Formula 1
Mar 4, 2021
Why Aston Martin’s arrival is more than just new green livery Prime

Why Aston Martin’s arrival is more than just new green livery

In the most eagerly anticipated Formula 1 team launch of the season, the rebranded Aston Martin squad’s changes go much further than the striking paint job. But rather than a restart, the team hopes to build on top of solid foundations.

Formula 1
Mar 3, 2021
The car Aston Martin begins its new F1 journey with Prime

The car Aston Martin begins its new F1 journey with

The team formerly known as Racing Point gambled successfully on a Mercedes look-alike in 2020 as it mounted a strong challenge for third in the constructors' race and won the Sakhir GP. Now clothed in British racing green, Aston Martin's first Formula 1 challenger since 1960 provides the clearest indicator yet of what to expect from the new-for-2021 regulations

Formula 1
Mar 3, 2021
The tricky driver conundrums facing Mercedes in F1 2021 Prime

The tricky driver conundrums facing Mercedes in F1 2021

Ahead of the new Formula 1 season, reigning world champions Mercedes will take on challenges both old and new. This also can be said for its driver conundrum which could become key to sustaining its ongoing success...

Formula 1
Mar 2, 2021
How Alpine's cure to 2021 F1 rules starts at the front Prime

How Alpine's cure to 2021 F1 rules starts at the front

A new name, new faces and new colours pulls the rebranded Alpine Formula 1 team into a new era while carrying over core elements of its 2020 car. But under the surface there's more than meets the eye with the A521 which hints at how the team will tackle 2021...

Formula 1
Mar 2, 2021
Can Mercedes' W12 retain the team's crown? Prime

Can Mercedes' W12 retain the team's crown?

Replacing Formula 1's fastest car was never going to be an easy feat for Mercedes. Amid the technical rule tweaks to peg back the W12 and its 2021 rivals, the new Mercedes challenger will remain the target to beat

Formula 1
Mar 2, 2021
The pointed note that starts Ferrari's Leclerc vs Sainz era Prime

The pointed note that starts Ferrari's Leclerc vs Sainz era

Ferrari is starting its post-Sebastian Vettel age by welcoming Carlos Sainz in alongside Charles Leclerc. But while Sainz has a tough challenge to match his new teammate, Ferrari is also sending a message that previous intra-team spats must end

Formula 1
Mar 2, 2021