London: Media reports claimed that Formula 1 teams agreed to spend $ 145 million next season, as the coronovirus epidemic tried to cope with the financial decline. With the 2020 season so far underway and with 10 of the scheduled 22 races already canceled or postponed, the 10 teams reached a new agreement.
The BBC reported that the teams reduced the budget cap to be introduced in 2021 from $ 30m to $ 145m. It will be reduced again to $ 20m for the period and $ 135m in 2022. The report, including a research and development barrier system, said other measures were also agreed.
Friday’s agreement is still to be officially approved by the World Motorsport Council of governing the FIA next week. Initially, a $ 175 million spending cap was to be offered in a bid next year to help advance the competition. But before that the international game was halted by the global epidemic.
Earlier this month, F1 managing director Ross Bron warned of a “tragedy” when the teams went out of business. “This has become very clear, from talking to the management of the teams. The message is clear. We have got to cut costs and reduce the cost cap … If we lose some teams in this period then It will be a tragedy, “he said.
“The new agreement is going to have a lot of equitable prize money. Midfield teams in particular are going to be much better in terms of the ratio of their prize money.” Therefore a good midfield team should be able to score. Must be able to show the podium, maybe a win, and a small gain. If we can achieve that we must have a sustainable future.”