The coronavirus pandemic should be the “final wake-up call” for an “unhealthy” Formula 1 championship to make big changes, according to McLaren, as leading figures prepare to convene on Thursday.
Formula 1 has sought to address spiralling costs that has split the field into groups in recent years, with a budget cap ratified into the 2021 regulations as part of an intended overhaul.
The outbreak of the coronavirus pandemic has left Formula 1 on hiatus until at least July, prompting teams to quickly agree on cost-cutting measures, such as the delay to new regulations, the retention of 2020 cars and development restrictions, along with an extended factory shutdown period.
Several teams – as well as Formula 1 itself – have furloughed staff in a further cost-saving step.
The budget cap remains in place at $175m for 2021, as per the initial agreement, though teams have provisionally approved a reduction to $150m, which some want slashing to $100m per year.
“I think the crisis we’re in now is the final wake-up call that a sport which was unhealthy before and not sustainable has now reached a point where we need big changes and drastic changes as well,” said McLaren Team Principal Andreas Seidl.
“For us the most important thing is we simply make the next big step on the budget cap.
“We think it’s absolutely important now with all the financial losses we will face this year – the magnitude of it still being unknown because so far we don’t actually know when we can go back racing – I think it’s important to first of all combine with all the other measures like freezing the cars and so on to survive this year.
“And then it’s also important for our shareholders to show them that the losses you make this year we can somehow compensate them over the next few years.”
Seidl added that the financial pressure imposed upon some teams could mean that not all the current participants will be present when Formula 1 is able to return.
“There is a big risk we could lose teams through this crisis,” he said. “Again so far we don’t know what the income will be this year, we don’t know when we get back to racing again, of course we all hope we can do as many race as possible.
“It’s important now to make big decisions and make another big step in terms of the level of the budget cap for the future, which doesn’t help us for this year, for this year we need other short-term measures like freezing the cars etc to save costs.
“But at least then it gives an outlook to everyone taking part in Formula 1 that the sport will be a lot more sustainable and healthy in the future for the teams to survive this crisis.”
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