The teams had a first meeting via videoconference yesterday
The teams exchange positions and reach few conclusions
They agreed to continue talking about the subject in a few days in another appointment
Jean Todt rules out postponing new rules to 2023
The first meeting of the teams on the budget ceiling has been resolved without major conclusions. This has been a first exchange of positions in which they have realized the complexity of the matter and have agreed to continue talking about the subject in the following appointments.
The heads of Formula 1 have agreed to delve into the issue of lowering the budget ceiling. The teams had already agreed to reduce the original limit from € 160 million to € 135 million for the coronavirus. At yesterday’s meeting, the three main teams refused to reduce the ceiling to 115 million euros and it was also ruled out to delay the 2023 regulation for another year, according to the BBC.
Before the videoconference meeting, Zak Brown warned of the fragile state in which Formula 1 was and the importance of reducing the budget limit to 115 million euros to prevent several teams from going bankrupt. The McLaren boss warned that if an agreement was not reached, up to four teams could leave the grid and pointed out that this would mean losing more jobs than Mercedes, Ferrari and Red Bull should cut from their staff to guarantee everyone’s survival. .
Formula 1 and FIA President Chase Carey and Jean Todt spoke for five hours with the team leaders and they all agree that the complexity of the matter is not being taken into account.
For its part, Ferrari believes that it is not fair that everyone should have the same limit because many small teams buy parts from large ones. Scuderia recalls that they have a fixed expense that the little ones do not have: the research and development costs of these pieces. The fact that not all small teams follow the same working model further complicates the situation.
Ferrari and Red Bull do not want to drop below 135 million euros. The Scuderia defends that such a low limit would force it to make large-scale layoffs. Mercedes is indeed willing to give in for the common good. On the other hand, the study of introducing a limit on motor development costs, an expense that would not be considered within the budget ceiling.
The complexity of the matter has made the teams call a new meeting to continue debating in a few days. One option being considered right now is for F1 to enact a higher budget ceiling for large teams that covers research and development expenses and a lower one for client teams.
Jean Todt was adamant about the option to postpone the new regulation to 2023, as Red Bull proposed. This topic, which right now is not considered urgent, will be taken up again in the summer.
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