The F1 world mourned the passing of Eddie Jordan, former team owner and one of the most influential people in the sport, last weekend ahead of the Chinese GP. Stories of his brilliance, kind personality, and forward-thinking mindset have been circulating around the paddock ever since.
Ted Kravitz, one of the faces of the Sky Sports broadcasting team, recently recalled how Jordan foresaw the need for a change in the way teams competed in F1. He wanted the ‘arms race’ to end.
In other words, Jordan wanted a budget limit for all teams in the paddock, for the smaller independent teams—like Jordan, the team he owned—to stand a chance against the big names like Ferrari and McLaren. However, the idea was shot down.
“Eddie Jordan was always talking about how it doesn’t make sense for this spending arms race for the big manufacturers…” Kravitz said on the F1 show. “We have to have some budgetary constraints,” he further quoted him.
Sadly, the smaller teams could never make much of a push during his time in the sport. Only occasional wins or podiums defined their top moments. But eventually, F1 realized that to make the field more competitive, changes had to be made.
“Well he was right!” Kravitz continued. “He was a visionary in terms of what Formula 1 has turned out now with the budgetary restraints and it’s now much more of a level playing field.”
Jordan’s dream turned into reality in 2021
In October 2019, F1 announced a mandatory budget cap for all teams, regardless of their financial resources. The sport was experiencing a surge in popularity, driven by Liberty Media’s marketing efforts and the success of Drive to Survive.
Determined to improve the on-track action, the higher-ups aimed to create a more level playing field. Initially set for enforcement in 2020, the budget cap’s debut was postponed to 2021 due to the COVID-19 pandemic.
That season became the first in F1 history where teams were restricted to a $145 million spending limit, excluding driver salaries. And while it took time for the impact of the cost cap to be truly felt, it eventually made a difference.
COST CAP
The budget restrictions, already slated for introduction in 2021, has been significantly reduced for next season#F1 pic.twitter.com/fjDVkP4ZQx
— Formula 1 (@F1) May 27, 2020
Multiple teams began fighting for wins in 2024, and three teams fought for the Constructors’ title until the very end of the season. In fact, 2025 is also expected to be one of the most competitive seasons in recent history.
The budget cap also decreased over time—dropping to $140 million in 2022 and then to $135 million the following year, a figure that remains in place today. Jordan never got to experience team ownership under this system, but he found solace in knowing that his vision ultimately helped change the sport forever.
It has taught the underdogs how to dream.
