FIA introduces £30m budget cap
Mar 17, 2009 | 10:37 AM
#1
Thread Starter
| TeH Ears
Joined: Jan 2008
Posts: 8,188
From: Atlanta
FIA introduces £30m budget cap
autosport.com - F1 News: FIA introduces £30m budget cap
FIA introduces £30m budget cap
By Jonathan Noble Tuesday, March 17th 2009, 13:30 GMT
The FIA has introduced a budget cap in Formula 1 for the 2010 season, as autosport.com predicted last month, following a meeting of its World Motor Sport Council on Tuesday.
The voluntary cap will be set at £30 million per team per season, and those outfits signing up to the option will be allowed total technical freedom.
The FIA hopes that the move will make it easier for news teams to enter F1 and allow those teams without manufacturer support to be guaranteed a long future in the sport.
As a way of enticing teams to take up the option of the budget cap, the FIA has stated that it will tweak the regulations to ensure those with restricted finances will be just as competitive as those spending unlimited amounts of money.
A statement issued by the FIA said: "The technical freedoms accorded to the low-budget teams will be adjusted from time to time to keep their median performance on a par with the median performance of the unlimited-expenditure teams. The regulations for the unlimited-expenditure teams will remain stable and fixed."
FIA president Max Mosley confirmed that the £30 million budget cap would include drivers' salaries.
When asked what was included, Mosley said: "Everything except the motor home (if the team has one) and any fine(s) imposed by the FIA. All expenditure will be included, even the salaries of the drivers and team principal.
"If the team is profitable, it can pay a dividend to its shareholders, who may well include a chief engineer, team principal or even a driver. But we would make sure the team was genuinely making enough profit to cover the dividend."
Mosley also outlined details of what technical freedoms teams that signed up for the budget cap would be allowed.
"A different (but standard) under body, movable wings, no engine rev limit, no restriction on the number or type of updates, no homologation requirements, no limits on materials, testing, simulators, wind tunnels and so forth - most of the cost saving measures introduced over the last few years will not apply to these teams," he explained.
"However measures to save money during the race weekend, such as the ban on refuelling and the Saturday parc ferme, will apply to both categories of team. We are also thinking about a much bigger capacity KERS for the cost-capped teams. But all this must be covered by the £30 million - no exceptions and no free or subsidised outside help.
"Anything supplied by another team or an outside supplier will be included at its full commercial cost except for items supplied to all teams at subsidised rates under the single supplier arrangements negotiated by the FIA (e.g. for tyres), which allow all teams to benefit equally from reduced costs."
He added: "The engine will comply with current rules, except that there will be no rev limit and no development freeze. However, the entire engine expenditure will come out of the cap. If the engine is supplied by an outside commercial entity or another team, we will have to be satisfied that there is no hidden subsidy.
"If a team has its own engine, we will check its full cost just as we will the rest of the car. The current rule limiting manufacturers to supplying engines to one additional team each will remain in place."
FIA introduces £30m budget cap
By Jonathan Noble Tuesday, March 17th 2009, 13:30 GMT
The FIA has introduced a budget cap in Formula 1 for the 2010 season, as autosport.com predicted last month, following a meeting of its World Motor Sport Council on Tuesday.
The voluntary cap will be set at £30 million per team per season, and those outfits signing up to the option will be allowed total technical freedom.
The FIA hopes that the move will make it easier for news teams to enter F1 and allow those teams without manufacturer support to be guaranteed a long future in the sport.
As a way of enticing teams to take up the option of the budget cap, the FIA has stated that it will tweak the regulations to ensure those with restricted finances will be just as competitive as those spending unlimited amounts of money.
A statement issued by the FIA said: "The technical freedoms accorded to the low-budget teams will be adjusted from time to time to keep their median performance on a par with the median performance of the unlimited-expenditure teams. The regulations for the unlimited-expenditure teams will remain stable and fixed."
FIA president Max Mosley confirmed that the £30 million budget cap would include drivers' salaries.
When asked what was included, Mosley said: "Everything except the motor home (if the team has one) and any fine(s) imposed by the FIA. All expenditure will be included, even the salaries of the drivers and team principal.
"If the team is profitable, it can pay a dividend to its shareholders, who may well include a chief engineer, team principal or even a driver. But we would make sure the team was genuinely making enough profit to cover the dividend."
Mosley also outlined details of what technical freedoms teams that signed up for the budget cap would be allowed.
"A different (but standard) under body, movable wings, no engine rev limit, no restriction on the number or type of updates, no homologation requirements, no limits on materials, testing, simulators, wind tunnels and so forth - most of the cost saving measures introduced over the last few years will not apply to these teams," he explained.
"However measures to save money during the race weekend, such as the ban on refuelling and the Saturday parc ferme, will apply to both categories of team. We are also thinking about a much bigger capacity KERS for the cost-capped teams. But all this must be covered by the £30 million - no exceptions and no free or subsidised outside help.
"Anything supplied by another team or an outside supplier will be included at its full commercial cost except for items supplied to all teams at subsidised rates under the single supplier arrangements negotiated by the FIA (e.g. for tyres), which allow all teams to benefit equally from reduced costs."
He added: "The engine will comply with current rules, except that there will be no rev limit and no development freeze. However, the entire engine expenditure will come out of the cap. If the engine is supplied by an outside commercial entity or another team, we will have to be satisfied that there is no hidden subsidy.
"If a team has its own engine, we will check its full cost just as we will the rest of the car. The current rule limiting manufacturers to supplying engines to one additional team each will remain in place."
Mar 17, 2009 | 04:48 PM
#4
Teamspeed Pro
Joined: Apr 2008
Posts: 31,976
From: Minnesota
Quite the contrary, imo. I really think this is a fantastic rule! It'll allow the underdogs to keep up with the big teams and make it easier for more teams to join the grid instead of drop out in the future.
Mar 17, 2009 | 07:31 PM
#5
Teamspeed Pro
Joined: Dec 2007
Posts: 1,415
From: NY
The Nazi orgy makes so much sense now.
Last edited by Dynamic; Mar 17, 2009 at 07:34 PM.
Mar 17, 2009 | 07:48 PM
#6
I'm closing this thread.
Joined: Jan 2008
Posts: 8,610
From: Atlanta Metro-East
I like the highlighted section.
The section in red explains how teams will be able to pay the large salaries of the top drivers under the budget cap.
The section in red explains how teams will be able to pay the large salaries of the top drivers under the budget cap.
autosport.com - F1 News: FIA introduces £30m budget cap
FIA introduces £30m budget cap
By Jonathan Noble Tuesday, March 17th 2009, 13:30 GMT
The FIA has introduced a budget cap in Formula 1 for the 2010 season, as autosport.com predicted last month, following a meeting of its World Motor Sport Council on Tuesday.
The voluntary cap will be set at £30 million per team per season, and those outfits signing up to the option will be allowed total technical freedom.
The FIA hopes that the move will make it easier for news teams to enter F1 and allow those teams without manufacturer support to be guaranteed a long future in the sport.
As a way of enticing teams to take up the option of the budget cap, the FIA has stated that it will tweak the regulations to ensure those with restricted finances will be just as competitive as those spending unlimited amounts of money.
A statement issued by the FIA said: "The technical freedoms accorded to the low-budget teams will be adjusted from time to time to keep their median performance on a par with the median performance of the unlimited-expenditure teams. The regulations for the unlimited-expenditure teams will remain stable and fixed."
FIA president Max Mosley confirmed that the £30 million budget cap would include drivers' salaries.
When asked what was included, Mosley said: "Everything except the motor home (if the team has one) and any fine(s) imposed by the FIA. All expenditure will be included, even the salaries of the drivers and team principal.
"If the team is profitable, it can pay a dividend to its shareholders, who may well include a chief engineer, team principal or even a driver. But we would make sure the team was genuinely making enough profit to cover the dividend."
Mosley also outlined details of what technical freedoms teams that signed up for the budget cap would be allowed.
"A different (but standard) under body, movable wings, no engine rev limit, no restriction on the number or type of updates, no homologation requirements, no limits on materials, testing, simulators, wind tunnels and so forth - most of the cost saving measures introduced over the last few years will not apply to these teams," he explained.
"However measures to save money during the race weekend, such as the ban on refuelling and the Saturday parc ferme, will apply to both categories of team. We are also thinking about a much bigger capacity KERS for the cost-capped teams. But all this must be covered by the £30 million - no exceptions and no free or subsidised outside help.
"Anything supplied by another team or an outside supplier will be included at its full commercial cost except for items supplied to all teams at subsidised rates under the single supplier arrangements negotiated by the FIA (e.g. for tyres), which allow all teams to benefit equally from reduced costs."
He added: "The engine will comply with current rules, except that there will be no rev limit and no development freeze. However, the entire engine expenditure will come out of the cap. If the engine is supplied by an outside commercial entity or another team, we will have to be satisfied that there is no hidden subsidy.
"If a team has its own engine, we will check its full cost just as we will the rest of the car. The current rule limiting manufacturers to supplying engines to one additional team each will remain in place."
FIA introduces £30m budget cap
By Jonathan Noble Tuesday, March 17th 2009, 13:30 GMT
The FIA has introduced a budget cap in Formula 1 for the 2010 season, as autosport.com predicted last month, following a meeting of its World Motor Sport Council on Tuesday.
The voluntary cap will be set at £30 million per team per season, and those outfits signing up to the option will be allowed total technical freedom.
The FIA hopes that the move will make it easier for news teams to enter F1 and allow those teams without manufacturer support to be guaranteed a long future in the sport.
As a way of enticing teams to take up the option of the budget cap, the FIA has stated that it will tweak the regulations to ensure those with restricted finances will be just as competitive as those spending unlimited amounts of money.
A statement issued by the FIA said: "The technical freedoms accorded to the low-budget teams will be adjusted from time to time to keep their median performance on a par with the median performance of the unlimited-expenditure teams. The regulations for the unlimited-expenditure teams will remain stable and fixed."
FIA president Max Mosley confirmed that the £30 million budget cap would include drivers' salaries.
When asked what was included, Mosley said: "Everything except the motor home (if the team has one) and any fine(s) imposed by the FIA. All expenditure will be included, even the salaries of the drivers and team principal.
"If the team is profitable, it can pay a dividend to its shareholders, who may well include a chief engineer, team principal or even a driver. But we would make sure the team was genuinely making enough profit to cover the dividend."
Mosley also outlined details of what technical freedoms teams that signed up for the budget cap would be allowed.
"A different (but standard) under body, movable wings, no engine rev limit, no restriction on the number or type of updates, no homologation requirements, no limits on materials, testing, simulators, wind tunnels and so forth - most of the cost saving measures introduced over the last few years will not apply to these teams," he explained.
"However measures to save money during the race weekend, such as the ban on refuelling and the Saturday parc ferme, will apply to both categories of team. We are also thinking about a much bigger capacity KERS for the cost-capped teams. But all this must be covered by the £30 million - no exceptions and no free or subsidised outside help.
"Anything supplied by another team or an outside supplier will be included at its full commercial cost except for items supplied to all teams at subsidised rates under the single supplier arrangements negotiated by the FIA (e.g. for tyres), which allow all teams to benefit equally from reduced costs."
He added: "The engine will comply with current rules, except that there will be no rev limit and no development freeze. However, the entire engine expenditure will come out of the cap. If the engine is supplied by an outside commercial entity or another team, we will have to be satisfied that there is no hidden subsidy.
"If a team has its own engine, we will check its full cost just as we will the rest of the car. The current rule limiting manufacturers to supplying engines to one additional team each will remain in place."
Mar 17, 2009 | 08:24 PM
#7
Official Bowel Mover
Joined: Dec 2008
Posts: 4,345
From: boston
Actually it will allow drivers to go to NASCAR for more money. If this rule were to be enacted today SFM would have to fire Kimi. F1 has been the pinnacle of automotive tech. and is now on the verge of becoming spec. Lets not forget that the one team that dropped was replaced almost instantaneously, and by what may be favorite.
The Nazi orgy makes so much sense now.
The Nazi orgy makes so much sense now.
Mar 17, 2009 | 08:43 PM
#8
FIGJAM
Joined: Jan 2008
Posts: 9,463
Originally Posted by Dynamic
Actually it will allow drivers to go to NASCAR for more money. If this rule were to be enacted today SFM would have to fire Kimi. F1 has been the pinnacle of automotive tech. and is now on the verge of becoming spec. Lets not forget that the one team that dropped was replaced almost instantaneously, and by what may be favorite.
this ruling will insure the long term viability of F1, it should be applauded by any real fan of the sport. reducing budget's by 90% or more for certain teams is fantastic, now they need to sort out the customer car issue and the redistribution of funds issue. the next concorde agreement should take care of those aspects, it seems to me that the future is looking bright indeed.
Mar 17, 2009 | 08:44 PM
#9
Teamspeed Pro
Joined: Dec 2007
Posts: 1,415
From: NY
In regards to the highlighted section that you like, it doesn't really change my argument as my focus was on driver salaries.
Not according to last year's Forbes celeb/sports list where Kimi made ~$1MM in endorsements and the remaining ~$44MM in salary. Furthermore, who can predict if F1 will remain as popular given the controversy regarding this matter and the new "wins" system.
Last edited by Dynamic; Mar 17, 2009 at 08:56 PM.