Formula 1 Teams Reveal New Cost Cutting Package

Lewis Hamilton, formula 1

Formula 1 teams have come to an agreement regarding a new cost-cutting package for 2021. The new package is aimed at lowering the cost of racing and closing the gap between the teams.   The budget cap will include an attempt to leveling the playing field regarding research and development for the teams.

New Budget Conscious Package

The new cost-cutting package, which that still has to be approved by the FIA, F1’s governing body, is scheduled to be reviewed next week.  The package includes lowering the budget cap to $145 million for next year. It will continue to be reduced over the next couple of years.  In 2022 the budget gap will be reduced to $140 million and in 2023 it will go down to $135 million.

Ferrari and Red Bull protested the proposed budget cuts, instead of wanting the budget to stay at around $150 million.  Ferrari argued that lowering the budget to that level would necessitate the release of many of their employees as well as cutting back on technology and development.  Ferrari has already hinted that their 2020 car is not as fast as they would like and to have to cut back on further development could be harmful to their 2021 team.

McLaren led the charge for lowering the budget to figures as low as $100 million. They proposed that bringing the teams closer together would increase competition, make for better racing, and pull in more fans.

Cost Cutting in a New Way

Aerodynamics will be taking the biggest hit in the new cost-conscious plan. Wind tunnel time, along with computing data will be limited.  Each team’s finishing position in the previous year’s championship will determine the allowance of research and development that they are allowed on a sliding scale. Any new teams will be given the same allowance as the team that finished last.

The vote to accept will also include several other rule changes that will include teams racing their 2020 cars in 2021 as well, changes in race weekend schedule, and restrictions on engine development.

The future of Formula 1 may well be changed by the new cost-cutting package the teams have agreed on. Closing the gaps between the teams, changing research and development, and other fundamental rules will reveal a new future for Formula 1.

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