Louis Camilleri, the CEO of Scuderia Ferrari, reckons that Formula 1 will continue to be the premier single seater category in the world despite the introduction of a budget cap from 2021.
Initially, the plans for the budget cap were to limit teams to $175 million per annum, albeit with some exclusions, but recent events including the coronavirus pandemic, has seen teams renegotiate this figure down to $145 million, with further drops to $140 million in 2022 and $135 million for 2023.
The budget cap has been introduced to try and level out the playing field, with some teams, such as Ferrari and the Mercedes AMG Petronas Formula One Team, achieving success by having significantly larger budgets than many of their rivals.
But despite the limitations being placed on teams, Camilleri says Formula 1 will still be the best category in the world but more economically sustainable.
“There has been significant progress on numerous measures to freeze various components and hence reduce costs going forward,” Camilleri is quoted as saying by MotorsportWeek.com.
“[There has also been] substantial progress on a cost ceiling and its perimeter effective as of 2021, which will hopefully be put to bed in the near future.
“It remains our hope that such ceiling will render Formula 1 more economically sustainable for all participants while ensuring that it remains the premier racing championship globally and the source of significant advances in automotive innovation and technology.”