Budget Cap - Good, Two Tier System - Bad


Well I applaud the FIA for bringing down the costs in f1 but not for it's two tier system in which if you spend within the £40 million cap then you get unlimited testing time and flexible regulations on your car. Will this make any difference at all? Pat Symonds recently commented in F1 Racing that the fact there is no testing "won't make too big a difference" if there was testing. And anyway, the teams that are likely too spend over 40 million are probably going to be the big money guys of Ferrari, Toyota and McLaren. They've got mass amounts of resources to make sure that those who have more technical freedom won't! Unless, the technical freedom is so great that those teams breaking the cap won't benefit. But this is f1, and somehow or another there are some crafty people who will get there way round it!

Hearing that the number of cars maximum on the grid will be 26 next year, is encouraging. Nothing better than more spice, to heat things up!
Brogan said:
Welcome to the site McFerrari

I don't really know where to post this now as there are 3 similar threads :s

Anyway, both McLaren and Williams have stated they are not in favour of a 2 tier system.

McLaren reluctant about two-tier series

Williams also against two-tier series

It will be interesting to see how united/split FOTA are over this and whether they are able to influence the FIA at all before it's too late.
Thanks for the kind welcome Brogan.
Ferrari have joined McLaren and Williams in voicing their disapproval of the proposed new regulations.

In a strongly worded letter to Max Mosley, the president of the FIA, which was leaked to The Times, Luca Di Montezemolo, the Ferrari president, says that caps have been foisted on teams without proper warning. Ferrari claim that the rules will cause only damage to Formula One because of the inevitable wrangling about policing them and allegations of cheating.
More here: Max Mosley on collision course with Ferrari

Has any team actually come out in support of the budget cap?
I know Jenson Button has stated his preference for it but what about Ross Brawn and the other team principals?
Most of those in favour are waiting in the wings.

Vijay Mallya has been oddly hesitant, on the face of it - his team being one who this measure should, in theory, be directly aimed at?


Perhaps FOTA really are going to wait until they've all discussed it before putting out a unified position? It'll be very difficult to get total agreement around that particular table, I'd imagine.
The problem is not down to the FIA, but is instead down to the EU.

The EU have ruled that it would be an abuse of their power if the FIA introduced a compulsory budget cap. As such, the teams have been offered the option of being uncompetitive with unlimited budget, or being competitive with a capped budget. Essentially, it's trying to push through a budget cap through the back door, and in scuh a way as not to give them problems with the EU's competition commision.

So, I'd say that a budget cap is a necessity, but since the EU have meddled, this is one of the only options available to the FIA.
Perhaps a budget cap is necessary at this time, although I remain to be convinced.
But to cap it at £40m is just too low IMO.

The big teams will struggle to get down to that level in 1 year and if they do it will result in huge job losses and the closure/part closure of specialist facilities.

If they continue to compete without the cap then they are going to struggle for sponsorship.
After all if a team like Brawn is offering the whole car for £30m then there is no way Ferrari and McLaren can continue to command the figures they currently do for sponsorship.
The result will be several teams which will make huge losses over the seasons they continue to race un-capped.

It would have been far better to introduce a cap at a higher level and then gradually reduce it each year enabling the big teams to gradually reduce the size of their operations.

In effect the large teams will be forced into the cap for the reasons given above and I don't think that will benefit anyone, least of all the spectators.
A thought just popped into my head and I might be completely wrong (I usually am!)

Don't Ferrari get a nice little bonus from the powers that be for being in F1 so long? (if memory serves £50mill? per annum)

If they became a capped team does that mean they'd get a year's free racing?
Yes Ferrari do get more money than the other teams but it's not a longevity bonus, it's because they were first to sign up to the (now defunct?) new Concorde agreement.

The teams had been toying with the the idea of a breakaway racing series at the time so it was Max's and Bernie's way of ensuring that breakaway series never got off the drawing board and drove a wedge between the teams.

Here's an Autosport article on it (thanks GM): Ferrari commits to F1 until 2012
Sorry to dig up a very old topic but I think this is the right thread.

I've just seen on McLaren's Twitter that budget caps have been agreed. I'm going to search the interwebz and see what else I can find on this topic......


Planet F1 has this article:
http://planetf1.com/news/18227/6409601/ ... budget-cap

Having met in Singapore last weekend, FOTA have agreed an extension to the current Resource Restriction Agreement.

Under the agreement teams ensured that they would operate within certain financial parameters, but a meeting was called to discuss this amidst fears that teams had found ways to work around the agreement.

While FOTA decided against instituting a set budget cap, the association decided to extend the Resource Restriction Agreement into 2011, a move that has been welcomed by team bosses.

Whitmarsh says:

"We've signed a heads of agreement which has gone a long way to improving it, extending it, making further reductions, and closing the known loopholes," he said.

"There's an obligation within the agreement that if anyone knows of a loophole that they declare now or if subsequently they learn of them they do something about it.

"I think it's a good step forwards in trying to manage the resources in F1, creating stability, and just an improvement on that approach. It took compromise from all of the F1 teams to achieve that. I think a week ago not many people would have predicted that we would have been able to achieve that. All credit to the F1 teams for being very sensible and co-operative, and that spirit enabled us to get quite an important agreement in place today."

Domenicali's view:

"We can have a fantastic income, but we cannot race alone," Domenicali told SpeedTV.

"We think that what has been achieved is good for F1. It's important on the other hand that the other small teams will appreciate what we're doing, because if you stretch too much, then you break the cord.

"But this is for sure something that was needed for the future of F1, because it's a moment where our sport needs to do some changes in terms of general approach, and Ferrari wants to play a fundamental role in that,"
From what I've read, 2 of the "top teams" haven't been sticking to the gentleman's agreement with regards to wind tunnel testing.
I wonder if this is why the budget cap has now been brought in?

Although having skimmed the details, it's "€20million for each specific element of operational cost".
So if there are 10 elements then that's still a lot of money.

Oh and teams have been "capped" at 415 people LOL
Brogan said:
Although having skimmed the details, it's "€20million for each specific element of operational cost".So if there are 10 elements then that's still a lot of money.

Oh and teams have been "capped" at 415 people LOL

Sorry Bro but I can't see any specific sums mentioned anywhere.
Top Bottom