McLaren F1 Team has explained that the new budget cap in Formula 1 will be a ‘massive and painful’ task, as it begins in the 2021 FIA Formula 1 World Championship.
The new cap will be introduced next season and will curb spending on certain areas to an overall budget of $145 million. This was approved by the FIA and will be the first time Formula 1 will see financial limitations.
Zak Brown, McLaren’s CEO, has explained the happiness they welcomed with the budget being confirmed. As McLaren was one of the teams pushing for the budget cap below the current 145 million.
“Formula 1 wins today. This is a crucially important moment for our sport. F1 has been financially unsustainable for some time, and inaction would have risked the future of F1 and its participants, who are to be commended for resolving this issue collectively and determinedly.”
McLaren announced that they would be losing some staff due to the impact of the COVID-19 pandemic; But the team will also lose some staff due to the impact of the budget cap in Formula 1.
Andreas Seidl explained that it will not just affect them, but they will have to adjust the team so that it is working well for what is available to them.
“It has been clear to everyone for some time that a budget cap would be applied and we pushed for a lower limit to support a financially sustainable sport. It is a big challenge ahead of us.
“Adjusting the way we work and right-sizing the team to this new cap over the next months is a massive and painful task and, highlighted by our news earlier this week, will sadly mean losing team members, but our aim is to be the best-sized and most efficient team in the future.
“The cooperation and understanding of our team members have been great and with shutdown coming to an end from Wednesday onwards, it is important the team had clarity on the various regulations, which will now allow us to start work again on our cars and understand the implications of the regulations for the future.”