F1 to introduce soft budget cap in 2019 so as to bring more parity in the the sport with respect to the existing gap between midfield and top teams.
Formula 1 is working hard towards introducing a budget cap in the sport so as to increase the competitiveness of the sport.
The final cost cap is set to be introduced in the new 2021 commercial rules, but before they kick in, a new soft budget cap is set to be introduced in 2019.
Teams will thus be allowed to spend only a certain amount in these new soft budget commercial rules.
“With the FIA and in consultation with the teams we are progressing well on the economic initiatives,” Ross Brawn said.
“Work on the mechanism of a cost cap is going well.
“At the moment we are looking to introduce it in a soft form, with dry runs in 2019, and 2020 and then it will be become regulatory in ’21. I would say that barring some last-minute discussions that’s pretty much finalised now.” he added.
According to the report in Racefans, the ceiling that is set to be introduced is going to that of $150 million.
With the introduction of this ceiling, F1 intends to bring some parity between the midfield teams and the sport’s elite.
“The ceiling won’t be achievable for all teams, but it will reduce the differential between the teams that are at that limit and those that aren’t,” Brawn said.
“At the moment I think a top team spends twice what a midfield team spends and if we reduce that margin to around 10 or 20 per cent, then there is something for the midfield teams to aspire to. There will still be an aura around the big teams, but a midfield team doing a great job will be able to compete.” he added.
Brawn cited the Force India situation to talk about how important this new budget cap is to the sport.
“We only have to look at the situation Force India finds itself in to understand how crucial this is. The financial burden on teams is not sustainable in the long term and we are taking steps to put a limit on how much a team can spend.” he concluded.