Formula One’s 10 teams have agreed to various cost-cutting measures including a budget cap of $145 million.
Although, reports say 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, which is seen as a formality and is likely to take place next week.
Ross Brawn, Formula One’s managing director for motorsport 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 in 2022 and $135 million for the period between 2023 and 2025. Formula One’s season has yet to start, with the first 10 races postponed or canceled due to the Covid-19 pandemic.
READ ALSO: How to drive SME growth post-pandemic on ‘zero budget’
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 but some teams had wanted a more drastic limit closer to $100 million to ensure the sport survives the crisis.
