Solving Formula 1’s financial problem will require cutting costs alongside the implementation of a budget cap, Red Bull team Christian Horner has claimed.
Since their takeover a year ago, F1 owners Liberty Media has made it clear levelling the financial playing field is one of their priorities with talks beginning in the final months of last year about resurrecting the idea of a budget cap with the figure of $150m reported by some publications.
Though there has been general support, concerns linger about how policeable a limit on spending would be and now Horner suggests sticking to it wouldn’t be as easy as it sounds.
“Everyone’s corporate structure is different,” he was quoted by F1i.com. “It (a budget cap) absolutely has to go hand in hand with dealing with the cost drivers upstream because the costs are generated through the regulations, that is what determines the amount we spend.
“If you put all your reliance on a cap, there is too much pressure on the dam,” the Briton added.
Also Read:
- Brawn wants a “sustainable” F1 for smaller teams
- Mercedes “not against” budget cap if properly regulated
- Lauda & Horner clash over Liberty F1 vision
FIA President and former Ferrari team boss Jean Todt echoed Horner pointing to how previous attempts at limiting spending have fallen through.
“We need to make regulations which will have some impact on the actual costs,” he commented. “To simply say we are going make a cost cap, I don’t think it will work. So far, any attempt has not worked.
“We have to be able to agree something that will be more sophisticated in order to achieve that.”
