AP Photo/Toru Hanai.
AP Photo/Toru Hanai.

Formula One teams agree to cost-cutting measures - report

By Alan Baldwin Time of article published May 25, 2020

Share this article:

London - Formula One's 10 teams have agreed to various cost-cutting measures including a budget cap of $145 million (R2.5bn) for 2021, the BBC reported on Friday.

The measures have yet to be approved officially by the governing FIA's World Motor Sport Council, by an e-vote due to the Covid-19 pandemic, but that is seen as a formality and is likely to take place next week.

Formula One's managing director for motorsport Ross Brawn said this month that the $145 million figure had been agreed and the sport would look for further reductions in future seasons.

The BBC and motorsport.com, citing multiple sources, said teams had agreed to reduce the cap to $140 million (R2.46bn) in 2022 and $135 million (R2.37bn) for the period between 2023 and 2025. Formula One's season has yet to start, with the first 10 races postponed or cancelled due to the Covid-19 pandemic.

A major rewrite of the technical regulations has been delayed to 2022, with teams carrying over this year's cars to 2021.

The budget cap, which does not include driver salaries, had been set initially at $175 million (R3.08bn) but some teams had wanted a more drastic limit closer to $100 million (R1.76bn) to ensure the sport survives the crisis. 

Follow us on Facebook to comment on this story

Click here  to sign up for the IOL Motoring Newsletter and receive all the latest motoring news and launch reports, industry insights, car reviews and motorsport gossip in your inbox every Monday, Wednesday and Friday.

Share this article:

Related Articles