Formula 1

Ferrari making financial cuts to aid small teams

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Credit: Octane Photographic Ltd.

Scuderia Ferrari has said they are making financial “sacrifices” in a bid to improve the future of Formula 1 after 2021 and aid smaller teams.

A $175m budget cap will be imposed from next year, however, it will not affect driver pay or engine development, with the outfit’s top three earners also not being affected.

F1’s owners have to secure new commercial deals with the teams as the ones which are currently in place are due to expire next year, coupled with dealing with the new sporting and technical rules which are due to be put in place, alongside financial regulation.

The desire is that teams return to a Concorde agreement, rather than the deals which the teams are currently making, altering the sport’s financial landscape.

Ferrari CEO Louis Camilleri told “We’ve been in favour of it because we think it’s good for the economic sustainability of Formula 1. 

“In time that budget cap should encompass more of the car, the power units, the drivers as well, various other things. Because ultimately if the sport is not economically viable, it’s slowly going to die.

“So, we viewed it as our responsibility to ensure that it will be economically viable. And in doing so, I have to say that we have and others, that we principally have made certain sacrifices, so that the smaller teams would get more money. 

“We’re not quite there yet on many details, but I think in terms of the actual principles, we are essentially OK.

“When you have 10 teams with all sorts of different views, there will always be continued discussion,” said Camilleri.

He made it clear that their role in the negotiations was due to the bigger picture, and maintaining their own interests.

This year was critical in terms of trying to finalise the Concorde Agreement and the various chapters of the financial regulations and technical regulations.”

“We as Ferrari have taken very much a leadership role because of our history, because of the importance of Formula 1 to Ferrari.”

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