Discussion:
supposedly - Formula 1 set for $175m cost cap in 2021
(too old to reply)
a425couple
2019-06-09 03:07:09 UTC
Permalink
from
https://www.motorsport.com/f1/news/175m-cost-cap-2021-season/4459506/

Formula 1 set for $175m cost cap in 2021
By: Adam Cooper
Jun 7, 2019, 12:15 PM

A cost cap of $175m per year is set to be imposed on Formula 1 teams
from the 2021 season – obliging big spenders Mercedes, Ferrari and Red
Bull to trim their budgets.
The number will be enshrined in the newly-created Formula 1 Financial
Regulations, which will stand alongside the existing FIA Sporting and
Technical Regulations.

The document has been put together by former Honda, Brawn and Mercedes
financial boss Nigel Kerr. He was brought to the F1 organisation by Ross
Brawn in 2017, and given the title of Finance Director, Motorsports,
with a brief of creating a workable cost cap.

The $175m figure is seen as a compromise, as the original plan was to
start with a higher number with a glide path down to a lower figure. It
will be in place for the five seasons from 2021-25, although there is
provision for an upward adjustment for inflation.

The figure does not include several key elements of team spending,
notably driver salaries, marketing expenses and any costs associated
with engines.

Estimates of what the big teams are currently spending on the areas that
are included within the cost cap range from $220-250m, so the reduction
is not insignificant – although the midfield teams had been hoping for a
final number in the $150m range.

The F1 organisation is confident that spending can be policed
successfully, and the regulations will allow for serious penalties for
indiscretions, such as the loss of points. Team principals could also
risk losing their FIA licences.

A "dry run" has been proposed for 2020, with teams invited to open their
accounts for examination in the same way that they will from 2021, but
without any regulatory requirements.


Sponsored Content
[Pics]Niki Lauda's Net Worth May Surprise You
[Pics]Niki Lauda's Net Worth May Surprise You
My Top Gadgets
John
2019-06-09 21:27:14 UTC
Permalink
Post by a425couple
The figure does not include several key elements of team spending,
notably driver salaries, marketing expenses and any costs associated
with engines.


How much spending can be swapped around in that? Some accountants are going to get rich off this.
t***@gmail.com
2019-06-09 22:59:23 UTC
Permalink
Post by John
Some accountants are going to get rich off this.
Oh poor you. Should not have quit school in grade 9.
John
2019-06-10 04:17:24 UTC
Permalink
Post by t***@gmail.com
Post by John
Some accountants are going to get rich off this.
Oh poor you. Should not have quit school in grade 9.
?????????

Loading...