FIA President Jean Todt has indicated that Formula 1 teams will likely have to reduce spending further, below the capped limit of $145m, when cost controls are introduced next year.
Formula 1 has long sought to introduce financial regulations and last October an annual figure of $175m – excluding some aspects such as engine development, driver salary costs and marketing – was agreed for 2021.
The coronavirus pandemic prompted a push to lower the limit further and eventually a cap of $145m for 2021 was reached, which will lower to $140m for 2022 and $135m for 2023.
But Todt believes teams will need to tighten their belts even more over the coming years.
“I feel that Formula 1 costs are still too high, still too high, because we are talking or concentrating on the cost cap,” said Todt at the Austrian Grand Prix.
“[The figure of $145m] did not include the exclusions, and in the exclusions you have quite a lot, it does not include costs for the engine manufacturers [and] the engine development.
“Probably for the bigger spenders, the cost of Formula 1 it is over three times the figure of the cost cap, so it’s still very high.
“But I would say it’s a start, you need to start from somewhere, and the regulations are changing, a lot of standardisation has been planned, so clearly it goes in the right direction, and it will absolutely need to go in this direction.”
Todt was nonetheless encouraged by the discussions that were held during the coronavirus pandemic.
“Formula 1 is the pinnacle of motorsport, and clearly and in any sport, there is the fighting spirit and you want to win, so clearly that is the number one motivation,” he said.
“[But this] has been an opportunity to achieve things that would have been much more difficult to achieve.
“And we know what we have been achieving, in full agreement, which is also an important thing, probably having such a close relationship with the Commercial Rights Holder allowed us to be united to present things to the teams.
“Then the teams have had to agree, because that was common sense, and that’s why we managed to have unanimity on most of what was presented.
“I must say the big teams, and mainly the three biggest teams [Mercedes, Ferrari and Red Bull], agreed things which were supported by the seven other teams, so on that, I mean, it has been a positive moment for Formula 1.”