F1 feared loss of manufacturers without cost cap
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Formula 1’s managing director Ross Brawn believes the sport would have lost manufacturers had a budget cap not been introduced for 2021.In a bid to ride out the anticipated economic impact of the coronavirus crisis, the 10 teams agreed a package of cost-cutting measures including the introduction of a revised budget cap of $145 million from next season.The spending cap will come into force from 2021 and was significantly reduced from the original planned figure of $175 million following recent talks between the teams and F1’s stakeholders.Speaking at this week’s FIA eSport Conference, Brawn admitted he feared the championship would have lost manufacturers had a cost cap not been implemented.”This crisis gave us the opportunity that we knew the budget cap always would,” Brawn explained.”Once you set a budget cap, you can always adjust it. Before this [pandemic] ever happened we said that if we ever have a crisis in the future we can adjust the budget cap to take account and all accept that the ideal level of the equilibrium changes.“Without the ability for these teams to go back to their boards and go back to the manufacturers saying ‘Look, F1 is vital, it’s important, and it’s going to cost less in the future’, I don’t think we would have retained the number of manufacturers or big teams that we have.”Renault’s future in F1 beyond the end of the current season had been uncertain but the French manufacturer recently confirmed its intention to continue its programme beyond 2020, citing its satisfaction at the new cost-saving proposals.F1’s drive to cut spending will also see teams carry over their 2020 chassis into 2021, while there will also be a new sliding scale research-and-development handicap system.
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