F1 director says more spending cuts needed to preserve teams

The managing director of Formula One has mentioned spending cuts can be mandatory to forestall the “tragedy” of groups leaving the game amid the coronavirus. Ross Brawn added Monday that the fee cap for the 2021 season is about to be minimize to $145 million (�117 million) and could possibly be diminished additional in subsequent years, with a extra even distribution of prize cash one other measure to assist enhance the competitiveness of the game.

A spending cap of $175 million was set to be launched subsequent 12 months in a bid to assist even up the competitors. But, following the outbreak of the worldwide pandemic that has seen the postponement or cancellation of 10 rounds of this 12 months’s world championship, talks on decreasing the determine have been held with the FIA, motorsport’s world governing physique.

“There has been a lot of consultation and we are in the final stages,” Brawn advised Sky Sports. “We’re going to start with a cap of $145 million and then the discussion is how much further down we can drive costs in the next few years.

“There is going to be a much more equitable prize fund in the new agreement. The midfield teams in particular are going to be much better off in terms of their proportion of the prize money.

“So a good midfield team should be able to score podiums, maybe a win, and should be able to show a small profit. If we can achieve that we should have a very sustainable future.”

– ‘Losing teams would be a tragedy’ –

The likes of Grand Prix giants Mercedes, Red Bull and Ferrari every have an annual spend greater than double the preliminary proposed cap of $175 million.

And the workforce principal of Italian mainstays Ferrari, arguably essentially the most well-known marque within the sport, advised the Guardian final month they might do the as soon as unthinkable and stop the game if the “demanding request” of an additional spending cap turned a actuality.

Nevertheless, Brawn — a former Ferrari technical director and Mercedes workforce principal — mentioned: “It has become very clear, from talking to the management of the teams. The message is clear. We’ve got to cut costs and have a reduction of the cost cap… If we lose some teams in this period it would be a tragedy.” The 65-year-old Briton, who solid his repute in motorsport as an engineer and designer, added: “In the situation we have now the economic sustainability of F1 is the priority and I think that counts as much for the big teams as it does for the small teams.

“We have 10 very good teams in F1 and we want to keep it that way.” Officials hope the Austrian Grand Prix on July 5 will mark the beginning of the delayed season, with Brawn saying: “We are working very closely with the FIA. They are putting together the structure we need. Everyone will be tested.”