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Formula One Set To Advance Budget Cap Decision Due To Financial Strain On Teams Amid Covid

F1 managing director Ross Brawn stated that the F1 is planning to reduce the spending cap of all teams by $30m from the original figure of $175m.

F1

Formula One motorsports Managing Director Ross Brawn has stated that F1 is planning to reduce the spending cap of all teams by $30m from the original figure of $175m. The developments come at the back of the financial strain on the sport and the teams due to coronavirus.

READ: La Liga Ready To Begin Testing Players Ahead Of Training

F1 set to advance budget cap restrictions

The price cap of $175m was set to be introduced in 2021 but will be done so earlier, Brawn said during a conversation with Sky Sports. He said, "The message is clear – we’ve got to cut costs – and therefore there’s another big step in the reduction of the cost cap. We started at $175m, that was a long battle to get it there. With the current crisis we’re now going to start at $145m and the discussion really is how much further we can drive [it down] over the next few years. Today’s meeting was [between the] FIA and Formula 1… and the details will be going out to the teams in the next few days. There’s been a lot of consultation and I think we’re now we’re at the very final stages. It’ll all become clear shortly.”

READ: Formula One Given $1.42 Billion Cash Bailout As Owners Race To Rescue Crisis-hit Teams

Earlier, during an F1 podcast, Brawn said that the organisers hope to start the season with a double-header in the naturally isolated environment around the venue for the Austrian Grand Prix on July 5. "One of the logistical challenges is getting everyone tested and cleared to enter the racing environment. We can contain everyone within that environment, and therefore once we are there it is appealing to have another race the following week. It’s pretty challenging to find the right sort of races early on where we can control the environment well enough to ensure the safety of everyone. Austria fits that bill very well. It has a local airport right next to the circuit, where people can charter planes into. It’s not too close to a metropolis,” he had said.

READ: F1 Hopes To Start Season With Double-header In Austria

READ: 'I Miss Racing Every Day', Says F1's Lewis Hamilton

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