Be Social on Youtube Bet Now

F1 teams limited to a $145M budget in '21

Sign up to receive daily news from VegasInsider

PARIS (AP) Formula One teams will be limited to spending $145 million next season and even less in following years, after motorsport's governing body approved a budget cap on Wednesday.


FIA said in a statement that the cap will be scaled down to $140 million in 2022 and $135 million for 2023-2025, based on a 21-race season. It excludes driver salaries and engine costs.

''Formula 1 wins today. This is a crucially important moment for our sport,'' said McLaren team chief executive Zak Brown, who had pushed for a lower cap. ''F1 has been financially unsustainable for some time, and inaction would have risked the future of F1 and its participants.''

F1's finances have taken a significant hit with t he first 10 races of the season either canceled or postponed because of the coronavirus pandemic.

Figures released by F1 owner Liberty Media this month showed first-quarter revenue of $39 million compared to $246 million for the same period last year. F1 had debts of $2.9 billion, offset by producing extra liquidity through internal transactions.

The smaller teams especially face an uncertain future, leading to discussions about reducing the budget cap.

A cap of $175 million was already agreed last year but several teams wanted it lowered again. Ferrari argued against it, but McLaren wanted it pushed as low as $100 million.

FIA also approved a new sliding scale system for aerodynamic testing, following Wednesday's vote by the World Motor Sport Council.

It means that the lower a team finishes in the constructors' championship, the more wind tunnel time it gets the following year to develop the team's car. This initiative is designed to reign in the advantage of the bigger teams while helping those with lesser resources compete more evenly.

The past 10 championships have been dominant doubles.

Led by six-time F1 champion Lewis Hamilton, the Mercedes team has won the past six drivers' and constructors' championships - an F1 record. Before that, Red Bull won both categories four straight times with Sebastian Vettel driving.

''A uniform budget cap, in concert with more even distribution of revenue among the teams, will ensure greater competition and more people wanting to watch live and on TV,'' Brown said. ''Ultimately the fans win, and if the fans win, the whole sport wins too.''

F1 is hoping to start the season with back-to-back races at the Austrian Grand Prix in early July, followed by two at the British GP.

F1 chairman Chase Carey said he hoped 15-18 of the 22 races this season can still be held.


More AP racing: and

Copyright 2020 by STATS LLC and Associated Press.
Any commercial use or distribution without the express written
consent of STATS LLC and Associated Press is strictly prohibited.

· Roberts: Top-Five Predictions
· Watkins Glen race moving to Daytona
· Alonso expects a strong return to F1
· Johnson cleared to race after 2 negatives
· Harvick captures Brickyard 400 win
· Blaney crew member taken to hospital
· F1 Drivers all wear "End Racism" T-shirts
· Hamilton starts Austrian GP from 5th
· NASCAR races on at Indy without JJ
NASCAR Expert Picks
Money Leaders
Handicapper Money
ASA + 1714
Last Race Leaders
Handicapper Money
ASA + 1640
Kevin Rogers + 444
Last Race Future Leaders
Handicapper Money
Joe Williams + 300
ASA + 200
Last Race Matchups Leaders
Handicapper Record
Kevin Rogers 4-0
Last Race Top Finishes
Handicapper Money
ASA + 1440
Overall Matchups Record
Handicapper Record
ASA 9-4
Joe Williams 27-23
Overall Top Finishes
Handicapper Money
Joe Williams + 850
ASA + 751
corner graphic