Baku, June 9, AZERTAC
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, according to Motorsport.com.
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 organization 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.
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