Budget cap not prize money leads Formula 1 meeting agenda

While last week's FIA and F1 meeting focused on engine proposals, which drew criticism from three current manufacturers, discussions now begin over a much deeper overhaul of F1 aimed at making it more competitive.

There had been suggestions a change to the prize money structure to eradicate the bonus system that favours the biggest teams was planned.

But sources with good knowledge of the situation have revealed that the prize money issue has not been tabled for discussion, and instead the focus of the meeting will be a potential budget cap.

Liberty is believed to be determined to bring in some form of cost limit for F1 teams.

It hopes for constructive dialogue to begin work on a framework plan, as well as consensus on how spending limits can be controlled.

Only once the budget cap idea has become more solid are talks about new income deals likely to move forward.

It is understood the decision to omit the prize money structure talks comes because the issue of commercial rights income does not involve the FIA and is a private matter between F1 chiefs and teams.

Commercial arrangements were previously discussed individually between teams and Bernie Ecclestone and agreements put in place up to 2020.

It is possible that system will continue, rather than a global dialogue involving all teams.

Amid criticism of the engine proposals last week, Renault F1 managing director Cyril Abiteboul said it was important that teams received an overall vision from Liberty that included cost caps, prize money and rule changes.

"If we were to save massively on the chassis or we were to have much more favourable commercial deals with FOM, everything is possible," he said when asked about potential cost increases from new engines.

"But it is very difficult to accept to commit to such a large new investment and writing off existing investment without indications on the other parameters."

Mercedes and Renault voiced fears of a dramatic increase in costs prompted by the new engine concept, while Ferrari suggested it could quit F1 after 2020.

Former F1 supremo Ecclestone insisted Ferrari president Sergio Marchionne's threats should be taken seriously.

"If the regulations come out where Ferrari think it is going to be a struggle and they can't support the money then they will leave," Ecclestone told the Independent.

He also predicted bigger teams would reject cost controls.

"They don't want budget caps and all that," Ecclestone added.

"They want to spend what they can afford to spend and I've always said the same thing. If people can't spend they have to go.

"If there are then only three or four teams something would have to be done but until that actually happens nobody is going to do anything.

"All the teams that say they can't afford it shouldn't put an entry in."