F1 aims for 110m Euro budget cap

Formula One is aiming to establish a 110 million Euro budget cap by the 2011 season, this week's Autosport magazine reveals

F1 aims for 110m Euro budget cap

A budget cap is set to be introduced in the sport from the start of 2009, and FIA consultant Tony Purnell has written to all Formula One teams with the figures the governing body would like to be set as a starting point for future discussions.

The figures proposed are 175 million Euro for 2009, 140 million by 2010, and 110 million a year later.

The cap would not cover expenditure on engines, KERS systems, marketing costs or driver and team principal salaries.

The figures, however, have received mixed reactions from some team bosses.

"Next year's figures are workable, but Honda is a little concerned about the glide-path, which needs more discussion," Honda Racing CEO Nick Fry told Autosport.

"By pushing the number too low, we may not only attract marginal operations but also alienate those at the top who want to develop high technology."

Renault boss Flavio Briatore said his team were already spending less than the suggested cap.

"I already pay 40 per cent less than the cap. If I want to keep to the limit then I need to spend more. It's nonsense.

"Formula One is part of the environment and the economical situation and the sponsors, the manufacturers - we are part of the economical world. Maybe not today or tomorrow but surely in the future it will affect us. F1 needs to be competitive, F1 is a better show and less investment and costs less."

Toyota's team president John Howett admitted he was worried the introduction of a budget cap could backfire due to the "controlled environment".

"It's a very broad discussion, you can achieve anything. The one issue is how low the FIA wants it to go over time and the impact on people's livelihoods. That's the biggest concern I have," he said.

"I think in the end it can be enforced. The real issue is whether business becomes more healthy when you have a controlled environment: normally competition is better for business.

"So my worry to some extent that it will have a negative effect. If you put businesses into a non-competitive environment and say from a point of view of business, I'm not personally convinced it's the right thing to do."

McLaren boss Ron Dennis, meanwhile, said he was not sure the FIA would be able to control the amount of money spent by a team.

"I don't see a budget cap as a regulatory process more the application of common sense," Dennis said.

"I don't think it's a question of enforceability but if there's a general ability to control costs when you've got the complicity of companies that have their R&D facilities in other countries where these programmes are in very difficult to understand languages and documents.

"I just have concerns you can monitor costs if you're policing them in Germany or China or Japan. How can you do that? We embrace anything that reduces the costs of F1 as long as it can be practically evaluated."

FIA president Max Mosley revealed earlier this year that a special 'finance commission' would be created to ensure the teams comply with the rules.

shares
comments
Grapevine: Drivers to take part in fashion show

Previous article

Grapevine: Drivers to take part in fashion show

Next article

Turkey defends actions after dog incident

Turkey defends actions after dog incident
Load comments
Why unseen Hungary heroics could be the making of F1's most overlooked driver Plus

Why unseen Hungary heroics could be the making of F1's most overlooked driver

The chaotic start to the Hungarian GP set the scene for F1's less heralded drivers to make a name for themselves. Esteban Ocon did just that to win in fine style, but further down the order one driver was making his first visit to the points and - while the circumstances were fortunate - took full advantage of the chance presented to him

Hungarian Grand Prix Driver Ratings Plus

Hungarian Grand Prix Driver Ratings

This was race that showcased the best and worst of Formula 1, producing a first time winner and a memorable comeback to a podium finish. Avoiding trouble at the start and astute strategy calls were key to success, but where some drivers took full advantage, others made key errors that cost them dearly

Formula 1
Aug 2, 2021
The “heart-breaking” call that led to Ocon’s Hungarian GP triumph Plus

The “heart-breaking” call that led to Ocon’s Hungarian GP triumph

Set to restart the red-flagged Hungarian Grand Prix in second, Esteban Ocon had some doubts when he peeled into the pits to swap his intermediate tyres for slicks. But this "heart-breaking" call was vindicated in spectacular fashion as the Alpine driver staved off race-long pressure from Sebastian Vettel for a memorable maiden Formula 1 victory

Formula 1
Aug 2, 2021
The F1 champion who became an Indy king in his second career Plus

The F1 champion who became an Indy king in his second career

Emerson Fittipaldi’s decision to go racing with his brother led to him falling out of F1, but he bloomed again on the IndyCar scene. NIGEL ROEBUCK considers a career of two halves

Formula 1
Jul 31, 2021
Why Mercedes is pleased to be in the Hungary hunt at a 'Red Bull track' Plus

Why Mercedes is pleased to be in the Hungary hunt at a 'Red Bull track'

Mercedes ended Friday practice at the Hungaroring with a clear gap to Red Bull thanks to Valtteri Bottas’s pace in topping FP2. But there are other reasons why the Black Arrows squad feels satisfied with its progress so far at a track many Formula 1 observers reckon favours Red Bull overall

Formula 1
Jul 30, 2021
How Red Bull endured its second car crash in two weeks Plus

How Red Bull endured its second car crash in two weeks

OPINION: Red Bull was justified to be upset that Lewis Hamilton survived his British GP clash with Max Verstappen and went on to win. But its attempts to lobby the FIA to reconsider the severity of Hamilton's in-race penalty were always likely to backfire, and have only succeeded in creating a PR disaster that will distract from its on-track efforts

Formula 1
Jul 30, 2021
The ‘screaming’ F1 engine future that may not be out of reach Plus

The ‘screaming’ F1 engine future that may not be out of reach

OPINION: It wasn't just the Verstappen/Hamilton clash that had the Red Bull and Mercedes bosses at loggerheads at Silverstone, with the nature of Formula 1's 2025 engines also subject for disagreement. But hopes to have loud, emotive engines that are also environmentally friendly don't have to be opposed

Formula 1
Jul 29, 2021
The drivers that need to strike gold before F1's summer break Plus

The drivers that need to strike gold before F1's summer break

OPINION: Formula 1 is about to break up for summer 2021, with the title battles finely poised. But it’s not just the latest round of Max Verstappen vs Lewis Hamilton that will be worth watching this weekend in Hungary, as plenty of drivers are eying big results to change the stories of their seasons so far

Formula 1
Jul 28, 2021