Formula 1
Formula 1
R
Emilia Romagna GP
18 Apr
Race in
47 days
09 May
Next event in
64 days
23 May
Race in
82 days
R
Azerbaijan GP
06 Jun
Race in
96 days
13 Jun
Race in
103 days
27 Jun
Race in
117 days
04 Jul
Next event in
120 days
18 Jul
Race in
138 days
R
Hungarian GP
01 Aug
Race in
152 days
29 Aug
Race in
180 days
05 Sep
Race in
187 days
12 Sep
Race in
194 days
26 Sep
Race in
208 days
R
Singapore GP
03 Oct
Next event in
211 days
10 Oct
Race in
221 days
R
United States GP
24 Oct
Race in
236 days
31 Oct
Race in
243 days
R
Australian GP
21 Nov
Race in
263 days
R
Saudi Arabia GP
05 Dec
Race in
278 days
R
Abu Dhabi GP
12 Dec
Race in
285 days

Cost cap talks dominate F1 bosses and teams debate

Formula 1 bosses took part in another debate about how to tackle the Coronavirus crisis on Monday, with the 2021 cost cap among the key subjects on the agenda.

Cost cap talks dominate F1 bosses and teams debate

Team principals joined FIA president Jean Todt, and F1's CEO Chase Carey and managing director of motorsports Ross Brawn for a telephone conference which lasted all afternoon. Sources say it was a positive and productive session, but few firm decisions were taken – although Todt insisted that the new technical regulations, already postponed from 2021 to 2022, will not be deferred for a further year.

The cost cap occupied much of the call. Teams have already informally agreed that it should be reduced from its current level of $175m, less exclusions, to $150m.

However, as the crisis has ramped up in recent weeks – and a completely lost 2020 season has become a real possibility – several teams, notably McLaren, have been pushing for an even stricter cost cap. The three major teams impacted by the original figure – Mercedes, Ferrari and Red Bull – still have some reservations.

Read Also:

One key issue that emerged in today’s discussion concerned R&D costs incurred by teams that supply customer or partner teams with components such as gearboxes and suspension parts, and this will now be researched further before the next discussion.

The debate revolved around the bigger teams having an extra allowance that is in effect transferred from the partner team to take account of the work that went into creating those shared parts. For example, if the basic cost cap is 100 then the supplier team would have a cost cap of 100 + ‘x’ and the supplied team 100 – ‘x’.

The argument is that it wouldn’t be fair if partner teams don’t have to allocate any R&D costs to the relevant components and can thus spend more in other areas. This issue has come into sharper focus as the cost cap has shrunk, and thus every million dollars of further reduction becomes proportionately more important.

The 2021 financial regulations also state that “all costs in respect of Research and Development for F1 activities must be included in relevant costs in the reporting period in which they are incurred.”

In other words any R&D work conducted for the new 2022 rules in the 2021 calendar year must be accounted for within the 2021 numbers. This regulation has become more relevant now because when the new rules were slated for 2021 R&D work was to have been conducted in 2020, with no financial restrictions imposed.

shares
comments
Gallery: Over 70 years of Porsche's history in pictures

Previous article

Gallery: Over 70 years of Porsche's history in pictures

Next article

F1 organisation puts staff on furlough as bosses take pay cut

F1 organisation puts staff on furlough as bosses take pay cut
Load comments

About this article

Series Formula 1
Author Adam Cooper
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

The mantra Ocon must follow to challenge Alonso at Alpine Prime

The mantra Ocon must follow to challenge Alonso at Alpine

OPINION: It's been an uneasy ride for Esteban Ocon since his F1 comeback - and fresh challenges lie in wait as he's joined by double world champion Fernando Alonso in the newly rebranded Alpine team. STUART CODLING sets out a roadmap to success…

Why Haas is willing to sacrifice its 2021 F1 season Prime

Why Haas is willing to sacrifice its 2021 F1 season

Every Formula 1 team is facing the same difficult decision this season: how do you split precious aero development time between the current car and the all-new 2022 project?

The big questions of F1 2021 - Karun Chandhok Prime

The big questions of F1 2021 - Karun Chandhok

After an unprecedented season last year, there are plenty of questions and storylines for the upcoming Formula 1 campaign. Sky Sports F1 pundit Karun Chandhok gives his verdict.

Formula 1
Mar 1, 2021
How McLaren F1’s new investors have already made an impact Prime

How McLaren F1’s new investors have already made an impact

The deal McLaren concluded with MSP Sports Capital last year which will help the cash-strapped Formula 1 team pay for much-needed infrastructure upgrades, also points toward the future for F1 itself, says GP Racing's Stuart Codling.

Formula 1
Feb 27, 2021
Why Verstappen isn't interested in the hype game Prime

Why Verstappen isn't interested in the hype game

In a pre-season where Red Bull has been unusually quiet, Max Verstappen has also been guarded about the team's fortunes in 2021. Even after trying the RB16B for the first time at Silverstone, the Dutchman was careful to manage expectations

Formula 1
Feb 26, 2021
The pros and cons of F1's 2021 rule changes Prime

The pros and cons of F1's 2021 rule changes

In the strategy for grand prix racing's future, 2021 represents a significant step towards the goal of closer racing and a more level playing field. That's the theory behind the latest raft of changes, but will they have the desired effect?

Formula 1
Feb 24, 2021
What Red Bull is trying to hide with its RB16B launch Prime

What Red Bull is trying to hide with its RB16B launch

Red Bull made no secret of the fact its 2021 F1 car is an evolution of its predecessor, but in keeping the same foundations while hiding some tightly-guarded updates with its RB16B, the team aims to avoid suffering the same pitfalls of previous years

Formula 1
Feb 23, 2021