FIA announces new attempt to cap costs in Formula 1 starting in 2015
10 December, 2013
Another attempt at introducing a cost cap in Formula 1 is being made, according to a surprising FIA announcement.
Although many teams are facing financial difficulties, the idea of compulsorily capping annual budgets has remained highly controversial.
But FIA president Jean Todt told L’Equipe last week: “We need to focus on the problem of costs at all levels of motor sport, not only Formula 1.”
So, after a Paris meeting of the sport’s new strategy group and the Formula 1 Commission, and with Todt declaring a “mandate”, the sport’s governing body said that the “principle of a global cost cap has been adopted” for Formula 1.
“The limit will be applied from January 2015,” the FIA declared.
Current Formula 1 team budgets are believed to range from about €70 million at the back of the grid, to several hundred million for frontrunners Red Bull and Ferrari.
The actual number eventually set for the cap is therefore the crucial detail.
“If we’re all at €50 million or €120 million budget, the show will be no different at all,” Caterham boss Cyril Abiteboul argued recently.
The FIA has said that it will now establish a ‘working group’ tasked with having the 2015 budget cap regulations approved by June of next year.
“In the end,” Lotus chief Eric Boullier added, “if we don’t do this, it’s going to be more and more difficult to survive.” (GMM)
Subbed by AJN.