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F1 set for $175 million cost cap and revised prize money structure for 2021

  • Published on 08 Jun 2019 10:39
  • comments 9
  • By: Harry Mattocks

Details of a proposed budget cap has been given to teams at the Canadian Grand Prix, with a cap of $175 million per year planned.

The FIA's Sporting Code stipulates that any new regulations must be agreed upon at least 18 months in advance of them being introduced, which gives Formula 1 a deadline of June 30th in order to finalise the 2021 changes.

This means that there is a meeting scheduled for the World Motorsport Council for the 14th of June, and this is where any final changes to the new regulations will be made.

According to reports, the FIA circulated copies of the draft sporting and technical regulations to all teams on the 4th of June, with a meeting taking place on Thursday. Further meetings between the teams and the FIA are planned before the deadline. 

The new rules propose that a fixed $175 million will be enforced for all teams, but despite the efforts of Liberty Media, travel/accomodation costs will not be included with this, and neither will the salaries of the top three highest-paid team executives and any marketing/hospitality costs.

Also, there will be a redesigned revenue structure which will mean that prize money is divided into four columns.

Columns 1 and 2 will be similar to what it in place currently, whereby Column 1 will be 50% of the common prize pot which is divided equally between teams. Column 2 will be divided amongst the top ten constructors on a performance-based scale.

The third column replaces the current CCB system, which meant that Mercedes, Ferrari, Red Bull, McLaren and Williams were given bonuses due to their historic value.

With the proposed structure, there will be a bonus for finishing in the top three, with the income split up between the teams based on how often they have been in the top three championship positions over a ten-year period.

Ferrari will keep their 'Long Standing Team (LST)' bonus, but this will be halved from the current $70 million, and will not be able to be used for performance purposes due to the cost cap.

They will also retain their ability to veto decisions, but this will be restricted to specific circumstances.


Replies (9)

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  • This is a good couple of changes. Personally I think 175 can be a bit too low of a cap, woulda preferred 250, but I don't mind. I also think it's fair that it won't impact some of the more off-track costs. Great that the historic bonus has been revised, though I think it should've covered the top 4 or 5 rather than the top 3, since now the money will literally just go to the big 3, who already are well-funded as is. Great that Ferrari's special treatment has been reduced a bit.

    • + 0
    • Jun 8 2019 - 11:17
    • Apparently, the smaller teams wanted it even lower than that

      • + 0
      • Jun 8 2019 - 11:49
    • I'm sure they did, and I'm sure the big teams didn't want a cap at all. This was IMO as low as we could go. A lower cap would also scare off potential interesting new parties with big bucks to spend. Low enough to even out the field, high enough that there is still "a point" for bigger spenders to remain and spend big.

      • + 0
      • Jun 8 2019 - 12:03
  • denis1304

    Posts: 234

    Liberty Media and FIA missed big opportunity to level the playing field even more
    They buckled under the threats from Ferrari, Mercedes and Red Bull that they will leave F1... we should be so lucky

    • + 0
    • Jun 8 2019 - 11:44
    • What would you suggest?

      • + 0
      • Jun 8 2019 - 11:49
    • denis1304

      Posts: 234

      No negotiations with any team! If you don't like new rules, you can leave. Thanks for playing

      • + 2
      • Jun 8 2019 - 14:01
    • If they left nobody would show up for races. Without manufacturing teams to push development F1 would just be glorified cart racing like F3.

      • + 0
      • Jun 8 2019 - 19:14
    • denis1304

      Posts: 234

      imagine fastest 100 m runners start negotiate with IAAF about race rules

      • + 0
      • Jun 8 2019 - 20:06
  • RogerF1

    Posts: 407

    Maybe though this will give impetus to a massive overspend by the big boys from now to 2021 to get developments kicked off and in the pipeline to just be ‘finished off’ in the cap year when 90% of the cost work is done or even just to grind everyone else so far down they’ll never catch up. I agree with Calle, top 3 is no good as it will just maintain the current status quo. But, Ram Samartha, surely it’s the manufacturers that have brought us to the non-competitive front grid we are now in.

    • + 0
    • Jun 8 2019 - 20:54


AT Grand Prix of Austria

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  • Free practice 1

    11:40 - 13:10

    Free practice 3

    13:10 - 14:10

    Race

    15:10 - 17:10

  • Free practice 2

    15:40 - 17:10

    Qualifying

    16:10 - 17:10

    Fastest lap

     

AT Grand Prix of Austria

Local time 

  • Fridayweather-image

  • Free practice 1

    11:40 - 13:10

    Free practice 2

    15:40 - 17:10

  • Saturdayweather-image

  • Free practice 3

    13:10 - 14:10

    Qualifying

    16:10 - 17:10

  • Sunday weather-image

  • Race

    15:10 - 17:10

    Fastest lap

    15:10 - 15:10



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Spain
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15 - Mar 17
Australia
29 - Mar 31
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12 - Apr 14
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26 - Apr 28
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7 - Jun 9
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12 - Jul 14
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26 - Jul 28
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30 - Sep 1
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20 - Sep 22
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11 - Oct 13
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1 - Nov 3
United States of America
15 - Nov 17
Brazil
29 - Dec 1
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Formula 1 Calendar - 2019

Date
Grand Prix & Circuit
15 - Mar 17
Australia Albert Park
29 - Mar 31
12 - Apr 14
26 - Apr 28
Azerbaijan Baku City Circuit
10 - May 12
23 - May 26
Monaco Monte Carlo
7 - Jun 9
21 - Jun 23
France Paul Ricard
28 - Jun 30
Austria Red Bull Ring
12 - Jul 14
United Kingdom Silverstone
26 - Jul 28
Germany Hockenheimring
2 - Aug 4
Hungary Hungaroring
30 - Sep 1
6 - Sep 8
Italy Monza
20 - Sep 22
27 - Sep 29
Russian Sochi Autodrom
11 - Oct 13
25 - Oct 27
1 - Nov 3
United States of America Circuit of the Americas
15 - Nov 17
Brazil Interlagos
29 - Dec 1
United Arab Emirates Yas Marina Circuit
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