Liberty eyes F1 budget cap for 2021

Sep.13 (GMM) Liberty Media is looking to introduce a budget cap of EUR 150 million per team from 2021.

Germany’s Sport Bild reports that the new F1 owner intends to bring in the dramatic rule to compliment the cheaper engine rules, with teams then allowed to spend a further EUR 50 million on marketing, hospitality and drivers.

The smaller teams are obviously supportive of the move to level the playing field.

“That number (EUR 150m) would actually be an increase for us,” said Haas team owner Gene Haas.

“I think the bigger problem is the bigger teams.”

Indeed, staff numbers counting 1000 plus are no longer unusual at the top of F1, so the biggest impact of the budget cap would be the forced loss of hundreds of jobs.

“That’s where the new owners are going to run into some big obstacles,” said Haas. “You just can’t change it overnight.”

But that’s where the pre-2021 ‘glide path’ comes in, with even Mercedes’ Toto Wolff saying he is open to budget cap discussions about that.

“I think we all live in the same financial reality, we have all seen teams growing dramatically over the years and we are all very sensible about wanting to somehow contain it,” he said.

“The discussions that have been happening are at a very early stage but I think there is no big disagreement.”

Related News

  • 07/10/2015 Haas’ F1 and Nascar budgets are similar – Gene Haas Oct.7 (GMM) Gene Haas says the money he will spend on formula one is comparable to his four-car operation in the American tin-top series Nascar. Californian Haas has partnered with […]
  • 25/01/2017 Teams turned down offer of F1 shares – Wolff Jan.25 (GMM) F1 teams turned down Liberty Media's offer to become co-owners of the sport. That is the news from Toto Wolff, boss of the championship winning Mercedes team. As the […]
  • 30/01/2017 Experts doubt Ecclestone will go quietly Jan.30 (GMM) The F1 world is poised to discover 'deposed' supremo Bernie Ecclestone's next move. The sport's long-time but now former chief executive has denied reports he is planning a […]
  • 27/05/2017 F1 income must not be ‘socialism’ – Haas May 27 (GMM) F1 must be "very careful" as it moves to shake up the income distribution model in the near future. That is the warning of Gene Haas, the American billionaire owner of the […]
  • 22/05/2017 Liberty to reveal F1 budget cap plan May 22 (GMM) The idea of team budget caps in formula one is not dead yet. With the arrival of Liberty Media, ideas about how to improve the competitiveness of the field are running thick […]
  • 10/10/2015 More success will drive Mercedes’ costs down – Wolff Oct.10 (GMM) Continuing success will drive Mercedes towards a clean balance sheet in formula one. That is the claim of team boss Toto Wolff, after it emerged recently that the Brackley […]
  • 28/12/2016 Liberty not offering teams voting power – report Dec.28 (GMM) F1 teams are being offered shares in the sport but not voting rights, according to Germany's Auto Motor und Sport. Correspondent Michael Schmidt said new owners Liberty […]
  • 19/06/2015 Haas’ Ferrari alliance ‘very clever’ – Wolff Jun.19 (GMM) Toto Wolff has hailed as "clever" the approach to formula one being taken by the 2016 American entrant, Haas. Gene Haas, already a co-owner of a Nascar team, is entering F1 […]
  • 27/07/2017 Liberty to introduce ‘franchise’ model for F1 – Wolff Jul.27 (GMM) Liberty Media is looking into replacing the F1 teams' current 'Concorde Agreement'-type commercial contracts with a franchise model. That is the claim of Mercedes team boss […]
  • 27/05/2017 Some F1 tracks like ‘carparks’ – Wolff May 27 (GMM) Toto Wolff has admitted he would not necessarily miss some F1 circuits if they fell by the wayside. The sport's new owners Liberty Media have hinted at adding more races to […]