F.I.A’s move may make it financially feasible for all current teams to remain on the grid, and enable new teams to join the sport.
Courtesy EssentiallySports
On Wednesday, the F.I.A. (The Fédération Internationale de l’Automobile), Formula One’s governing body, announced technical and financial regulations that will start in 2021 and continue through 2025.
Financially, it means that next year’s budget will be capped at $145 million, and reductions will continue on a sliding scale through 2025 to the level of $135 million that year.
Under the new arrangement, the F1 team that finishes with the lowest grid position for the first season will be permitted to utilize wind tunnel and CFD development the following year. In U.S. sports, this system is modeled on a draft-style function.
Teams already can face limited aerodynamic work at their factories. But following next season, it will also be based on the previous year’s championship.
One team, McLaren, already began staff cuts in response to COVID-19 impacts on its business and to prepare for next year’s budget cap.
McLaren CEO Zak Brown: This is a crucially important moment for our sport. F1 has been financially unsustainable for some time, and inaction would have risked the future of F1 and its participants.
Without having to worry about high and escalating expenses, the new financial limitations may be just what’s needed to keep all ten teams involved in the sport. It may also enable new teams to join the grid. If either or both happen, that will be good for the sport and F1 fans worldwide.
