Formula One has announced that it planning an increased budget cap, as the sport looks to cut costs due to coronavirus.
Initially a ceiling of $175 million was set to be introduced in 2021.
The sport is now looking to reduce the cap further by $30 million, down to $145 million.
Economic Squeeze on Formula One
The reduced spending limits have been brought in because of the economic squeeze on teams.
As the current season has been halted.
The French Grand Prix was the most recent to be postponed.
It was the 10th consecutive race to be suspended or cancelled due to the global pandemic.
If the British Grand Prix at Silverstone is to go ahead on the 19 July, it will be behind closed doors.
Brawn Looks to Create a “GlidePath”
Ross Brawn, the Formula One managing director, revealed that the cap is designed to create a glidepath for the future.
Its a path that will see teams’ spending reduced further. This is once the final talks with teams have been concluded.
More Details Expected
Discussions have also taken place between representatives of Formula One and the Fédération Internationale de l’Automobile, over slashing expenses.
Brawn said that there has been a lot of consultations, which are at the final stages.
Teams Now Reconsider Cap Measure
There has been some disagreement over the cost cutting measures in the sport.
Ferrari has voiced its opposition to a cap of $175 million.
While McLaren were in favour of reducing that figure further.
But due to the coronavirus pandemic, all teams are reconsidering its spending plans, in what is a new financial climate.