Ferrari making "sacrifices" to benefit smaller F1 teams

Ferrari says it is making financial "sacrifices" in negotiations over Formula 1's post-2021 future, intended to help the sport's smaller teams and ensure it is "economically viable".

Ferrari making "sacrifices" to benefit smaller F1 teams

A budget cap of $175million will be implemented from 2021, but will not apply to engine development or driver salaries, while other exemptions such as the company’s top three earners will also be allowed.

On top of the new financial regulations and sweeping new technical and sporting rules for 2021, F1’s owners have to strike new commercial deals with the existing teams as the current agreements are set to expire next year.

F1 wants teams to return to a unified Concorde Agreement, rather than continue to cut the sort of individual deals with teams that have skewed F1’s financial landscape, and Ferrari believes the negotiations have shaped a more equal share of the wealth for the 10 teams.

The company’s CEO Louis Camilleri told media, including Motorsport.com, before Christmas that Ferrari’s “credibility” meant it wanted to ensure that the ability to “innovate” remained while still being aware costs needed to be reduced.

“I think we've reached a relatively good compromise in terms of the cost cap, which today applies to the chassis,” he said.

“We've been in favour of it because we think it's good for the economic sustainability of Formula 1.

“In time that budget cap should encompass more of the car, the power units, the drivers as well, various other things. Because ultimately if the sport is not economically viable, it's slowly going to die.

"So, we viewed it as our responsibility to ensure that it will be economically viable. And in doing so, I have to say that we have and others, that we principally have made certain sacrifices, so that the smaller teams would get more money.

“We're not quite there yet on many details, but I think in terms of the actual principles, we are essentially OK.

“When you have 10 teams with all sorts of different views, there will always be continued discussion.”

Ferrari’s heritage bonus will be cut as part of the new arrangement, the Italian marque having previously enjoyed a deal that meant it was the highest-earning team despite its title drought stretching to 2008.

Camilleri reiterated that Ferrari’s central role in the 2021 negotiations was about the bigger picture, as well as its own interests.

“This year was critical in terms of trying to finalise the Concorde Agreement and the various chapters of the financial regulations and technical regulations,” said Camilleri.

“And then, there's the governance aspects. And I think there's been significant progress.

“We as Ferrari have taken very much a leadership role because of our history, because of the importance of Formula 1 to Ferrari.”

He added that he was happy with the progress that has been made and thinks all 10 teams will sign up.

“I'm quite confident that an agreement will be reached by all in the best interest of everybody,” he said.
“My experience in the past on other things, other businesses, is that when you get competitors, it's always very difficult to match everybody's intentions. But ultimately, they do see the benefit all around.

"Mattia [Binotto, team principal] in particular, has played a leadership role with the FIA, with the other teams. So, I think we're quite pleased with the progress on that front.”

Read Also:

shares
comments
2019 tech verdict: Mercedes proves its class once again
Previous article

2019 tech verdict: Mercedes proves its class once again

Next article

Top Stories of 2019, #1: F1's 2021 vision dominates horizon

Top Stories of 2019, #1: F1's 2021 vision dominates horizon
The five factors that won Sainz a British GP he’d twice lost Prime

The five factors that won Sainz a British GP he’d twice lost

Formula 1 has a newest race winner, in a grand prix the victor appeared to have lost twice, only to charge back to headline a sensational and dramatic British Grand Prix. From a massive start crash to a late sprint finish, here’s how five factors saw Carlos Sainz take his maiden grand prix win

Formula 1
Jul 4, 2022
Why there was no case to answer in Aston's latest F1 copycat saga Prime

Why there was no case to answer in Aston's latest F1 copycat saga

The appearance of a revised Aston Martin in Spain caused controversy but PAT SYMONDS explains why the FIA investigation found the Silverstone team had no case to answer

Formula 1
Jul 3, 2022
Why it's Red Bull that really leads a three-way fight so far at Silverstone Prime

Why it's Red Bull that really leads a three-way fight so far at Silverstone

After a slow start to Friday at Silverstone, all the Formula 1 teams had to effectively cram in a day’s worth of practice into one hour. But there was still plenty to learn and while Ferrari topped the times, a three-way battle is brewing ahead of the British Grand Prix

Formula 1
Jul 2, 2022
Verstappen exclusive: Why F1's champion isn't fazed by Silverstone return Prime

Verstappen exclusive: Why F1's champion isn't fazed by Silverstone return

Max Verstappen is the world’s number one racing driver… and he’s determined to keep it that way. Speaking exclusively to GP Racing's OLEG KARPOV, the Red Bull driver explains why he’s relishing the 2022 championship battle with Charles Leclerc – and why he’s not worried about returning to Silverstone, the scene of the biggest accident of his career last year

Formula 1
Jun 30, 2022
Why Red Bull’s RB17 hypercar can help its F1 team Prime

Why Red Bull’s RB17 hypercar can help its F1 team

On Tuesday, Red Bull laid out its plans to develop and build a new hypercar - the RB17 - penned by Adrian Newey. As the project itself sates Newey as a creative outlet, it also offers Red Bull's Formula 1 team a number of new and exciting avenues to pursue.

Formula 1
Jun 29, 2022
What to expect from Mercedes as F1 returns to Silverstone Prime

What to expect from Mercedes as F1 returns to Silverstone

OPINION: The British Grand Prix is a home event for Lewis Hamilton and George Russell, with their Mercedes team based just a few miles away too. But there’s another reason why the Silver Arrows squad is eager to arrive at Silverstone this weekend, which may help it fix its remaining problems with its 2022 Formula 1 challenger .

Formula 1
Jun 29, 2022
Inside AlphaTauri’s Faenza F1 factory Prime

Inside AlphaTauri’s Faenza F1 factory

AlphaTauri’s mission in F1 is to sell clothes and train young drivers rather than win the championship – but you still need a cutting-edge factory to do that. Team boss Franz Tost takes GP Racing’s Oleg Karpov on a guided tour of a facility that’s continuing to grow.

Formula 1
Jun 26, 2022
Connecting two of Ferrari's favourite F1 sons: Villeneuve and Leclerc Prime

Connecting two of Ferrari's favourite F1 sons: Villeneuve and Leclerc

Gilles Villeneuve's exploits behind the wheel of a Ferrari made him a legend to the tifosi, even 40 years after his death. The team's current Formula 1 star Charles Leclerc enjoys a similar status, and recently got behind the wheel of a very special car from the French-Canadian’s career.

Formula 1
Jun 24, 2022