Cost cap debate rumbles on with R&D on the table

Date published: April 7 2020

Cost cap debate rumbles on with R&D on the table

Monday’s meeting of the Formula 1 team bosses and F1 chiefs ended without a firm decision being made on the lowering of the budget cap.

Formula 1 boss Chase Carey and sporting boss Ross Brawn held a telephone conference with the 10 team bosses on Monday afternoon.

According to reports the meeting lasted the entire afternoon with no firm decisions being made.

The main topic was the budget cap.

Formula 1 was set to introduce a $175m cap next year with all 10 team bosses agreeing to lower than to $150m.

But, in light of the ongoing financial crisis that has seen McLaren, Williams, Racing Point and Formula 1 furlough staff, the sport’s smaller teams are pressing for that to be further reduced to $100m.

F1’s bigger teams, Mercedes, Ferrari and Red Bull, have ‘reservations’ according to Motorsport.com.

The main sticking point is R&D costs with the Mercedes, Ferrari and Red Bull all supplying other teams with parts such as suspensions and gearboxes.

That means they spend more in the R&D department than their customer teams, who then have money left over to spend in other areas.

The bigger teams therefore want more over and above the 100m.

BBC Sport reports that ‘Ferrari raised the point that a single figure for all teams was not fair and equitable because many of the smaller teams buy parts from the bigger teams.

‘In that event, Ferrari argued, the bigger teams are essentially disadvantaged because they are footing the research and development costs of those parts, a cost the smaller teams who buy them do not have.’

One solution touted was a sliding scale with the teams doing the R&D entitled to more than the cap while those only buying the parts will have less.

One decision that did come from the meeting was with regards to the 2022 regulations, which the FIA says not be deferred to 2023.

Follow us on Twitter @Planet_F1 and like our Facebook page.