2021 Budget Cap

[Miguel98]

Teams have agreed on a 175M budget cap for the 2021 season.

[dinizintheoven]

If I was a cynic, I'd say some of that budget will be used to pay the world's finest accountants to be as creative as possible when crunching the numbers, and do so in a way that makes it damn near impossible to get caught without getting GCHQ involved.

[mario]

If I was a cynic, I'd say some of that budget will be used to pay the world's finest accountants to be as creative as possible when crunching the numbers, and do so in a way that makes it damn near impossible to get caught without getting GCHQ involved.

I guess the question will be whether it is that painful a cut for the larger teams when you account for the bits that are excluded from the cap, which are apparently:

1. The salaries of the three highest paid executives;
2. Driver salaries;
3. The first $15 million of power unit costs;
4. Marketing/hospitality costs;
5. All race-weekend travel and accommodation costs

The latter, it seems, was taken out of the cost cap given it makes it a lot easier for Liberty Media to then justify expanding the calendar at a later date.

Now, that article on the Motorsport Network suggested that the largest teams are spending about $220-250 million on the bits which are going to be capped. If that is the case, a team towards the lower end of that range might not find it quite so painful to trim their spending back to match the cap - I guess we will wait and see what might happen.

[UncreativeUsername37]

If I was a cynic, I'd say some of that budget will be used to pay the world's finest accountants to be as creative as possible when crunching the numbers, and do so in a way that makes it damn near impossible to get caught without getting GCHQ involved.

I still remember Christian Horner's comment that "it'll be an Accounting World Championship". Obviously he has a reason to oppose cost caps, but he's far from the only one who's expressed that.

But as mario sort of says, it might end up being a small enough reduction that just working with it is better than the risk of getting in trouble with the FIA.... Either way, it's high enough I just feel the big teams will get very slightly hampered, but not enough that anything will actually change. We aren't going to see Racing Point being frontrunners or something.

[Rob Dylan]

I guess it all boils down to whether you'd prefer a series where the money is limitless and legal and anything goes, or a cap which at least in principle should bring the grid closer together, even if it does get abused behind the scenes. Personally, in this current climate I believe in the latter. Even if it is ten years or more too late.

[yannicksamlad]

I guess it all boils down to whether you'd prefer a series where the money is limitless and legal and anything goes, or a cap which at least in principle should bring the grid closer together, even if it does get abused behind the scenes. Personally, in this current climate I believe in the latter. Even if it is ten years or more too late.

I agree with this. There'll be some 'abuse' and some complaints, and some doubts . But like when they banned traction control before the compulsory ECU, whilst there may be arguments and uncertainties it will at least start to put on a restriction . Unrestricted is not the way to go.

But just look at the number; I hear big teams saying extra races aren't possible because the team members have so much time away, but the money they spend can fund a whole separate set of personnel so they could rotate. (Different question as to whether more races is a good idea - my point is just how much the big boys have available to spend)
$175m ...compared to 'expensive' F2...and yet excluding drivers , marketing and travel .

[Wallio]