‘Smaller teams want lower cap, Ferrari says no’

Michelle Foster
Williams garage FW43

Williams garage FW43

Formula 1’s smaller teams are pushing for next year’s budget cap to be lowered to “$100 million” with the topic up for discussion on Monday.

Formula 1 is facing its worst financial crisis is over a decade with many teams feeling the pinch.

This has already led to McLaren furloughing staff with the drivers taking pay cuts while Lewis Hamilton and the Ferrari team-mates have reportedly also offered to take a wage reduction.

However, not all the teams have drivers that earn salaries large enough to make a difference.

As such Auto Motor und Sport reports that the smaller teams are calling for next year’s budget cap to be lowered from $170 million to ‘$100 million’.

They also want all the exceptions, which include engines and driver salaries, to be gradually phased out.

Mercedes and Renault, both big manufacturers, are said to ‘welcome’ reducing the cap but Ferrari and Red Bull have warned of an ’emotional overreaction’.

According to AMS, Red Bull has said it would consider it but only if the 2022 rule changes are postponed to 2023 while Ferrari believe it ‘will do nothing’ to help the smaller teams survive and would rather expand the ‘austerity measures’ which already include racing this year’s chassis in 2021.

The Scuderia, though, is in favour of ‘deleting from the budget cap’ the driver wages and the salaries for the three most expensive employees.

F1’s smaller teams are not happy with Ferrari and Red Bull’s stance, the two teams also fearing job losses if the cap is reduced.

But as one member of a small team told the German publication: “If three or four teams have to give up entirely, many more jobs will be lost.”

The team bosses will hold a conference on Monday to discuss the matter.

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