Formula 1 CEO Chase Carey has confirmed a dry run of the 2021 budget cap regulations will be done next year.
A limit of $175m is expected to be put in place as part of the sport’s overhaul, bringing to reality an idea that has spoken about for over a decade.
The main concern that has always been voiced is how to police such a regulation, particularly given the ability of manufacturers to shift money around, and that’s why the agreed guidelines will be put to the test in 2020.
“We wouldn’t have done it if we didn’t think it was enforceable,” Carey said in a conference call with investors this week.
“Clearly you can account for everything. What you really need to make sure is that you have access to the right information to do the accounting, and that’s just about us being disciplined and firm about what we need.
“We’ve addressed that. We’re going to use 2020 – all the teams will participate in what I guess you could call effectively a dry run.
“The cost cap won’t actually be enforced with consequences until 2021, but in 2020 what we are actually really going to go through is shaking out the bugs of accounting for the costs.”
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Gaining the support of the top three teams, Mercedes, Ferrari and Red Bull, has been crucial throughout the entire process as their financial advantage essentially equates to their competitive advantage on track.
But Carey insists those teams are on board with the budget plan.
“In terms of the cost cap, one of the real positives is the evolving attitude towards it. We feel quite positive about where we are with the cost cap,” he claimed.
“In many ways teams, some of whom had concerns going in, are increasingly supportive.
“By and large right now the support is quite broad, I think everybody believes it’s an important element to the future of the sport.
“So I do think the support is built, and the teams really are behind it as being an important cornerstone to building the sport going forward.”
And the wider aim isn’t just to create a more sustainable and competitive environment for the current 10 outfits, but also entice new teams to the grid.
“We’ve talked about the competitive goals, but it is equally important that the cost cap creates a business model that is healthy and growing and positive for our existing teams, and potential new teams coming into it,” Carey continued.
“That has been enforced as we’ve had discussions with potential new teams. All have looked at steps in terms of cost discipline, and probably a more balanced revenue distribution as being cornerstones to creating what they think is an exciting opportunity.”
