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.