Driven by coronavirus, F1 will further limit spending

A report in AFP states that driven by the financial consequences of the Covid-19 epidemic, Formula 1 will further limit its expenses and introduce for the first time a handicap system to try to bring the small stables closer to the bigger ones.

The World Motor Sport Council, the governing body of F1, on Wednesday endorsed a series of measures at a meeting by video conference.

They were adopted unanimously by the stables and the leaders of the discipline after long months of discussions and disagreements.

No Grand Prix has been held since the beginning of the year, resulting in a sharp drop in revenue for the teams and the promoter of F1, the American group Liberty Media.

Initially set at $ 175 million for 2021, the spending limit will eventually be lowered to $ 145 million (132 million euros) for 2021, $ 140 million for 2022 and then $ 135 million for 2023-2025, based on of a season of 21 races, said the International Automobile Federation (FIA) in a press release.

This annual budget has reached, according to unofficial figures, nearly 500 million dollars for the largest stables in recent years.

If it will lead to sacrifices for the tenors of the championship, especially in terms of jobs, this new reduction will give satisfaction to the teams in the middle of the field and the bottom of the peloton who cannot get close to the top three.

Mercedes has won the last six editions of the world championship and, apart from the star brand, only Ferrari and Red Bull have registered their names in the Grand Prix list since 2014.

For the first time, F1 will also introduce a handicap system for the strongest teams.

It will be done through aerodynamic tests (ATR). Not only will these be reduced this year, but they will be reduced even more from 2021 for the best-placed teams, while the least well-placed in the world championship will have more leeway to do so.

"This ATR bias will be linear between P1 and P10," said the FIA.

The World Council has also decided on measures targeting "transferable components", ie those which are developed by one team but can be used by another.

Mercedes powers not only its own cars but also the Racing Point and the Williams and, as of next year, McLaren. Ferrari also powers Haas and Alfa-Romeo, while Honda equips the Red Bulls and the Alpha Tauri. Renault will, from 2021, motorize only its own single-seaters.

The fear was to see the largest stables bypass the spending limit by developing parts to those they motorize and, conversely, these small stables benefit from parts developed by the largest without having to pay them.

"It’s F1 winning today. It’s a very important moment for our sport. F1 has not been financially viable for some time and any inaction would have jeopardized its future and that of its participants. "said McLaren CEO Zak Brown in a statement.

The British brand, present in F1 since 1966 and which also manufactures prestige sports cars, has just announced the dismissal of 1,200 people, or a quarter of its workforce, due to the impact of the Covid-19 pandemic. on its activities.

The measures adopted on Wednesday will also give satisfaction to manufacturers like Renault, whose presence in F1 could be threatened by the current slump in the world automobile market.

The World Council has also adopted for 2020 provisions relating to "closed" and "open" events.

A revised calendar of the world championship is currently in preparation and many events, especially in Europe, can only take place if they are organized behind closed doors and with a very strict health protocol.

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