Formula 1 authority has decided after the crisis meeting that they are going to lowering the budget cap. All the members have agreed on this, and they are about to reduce $175m cap in 2021 to $125m as the financial stability has been shaken by COVID-19 pandemic.
It has been stated by McLaren Boss Zak Brown, that F1 is going through a fragile state and it is an imperative decision to reduce the budget. ‘Cause there are many small teams who are buying staffs from the bigger teams, and it could be a threat to those teams to quit sports as well.
Moreover, this reduced budget would affect the purchases, sponsorships and team development as well. There is an argument between Ferrari, Red Bull and Mercedes that the cap not to be lesser than $150m, whereas Mercedes are eager to go below that figure if the result is based on a holistic view of real cost saving and not aggressive opportunism of some teams demanding to hook back others.
Now the authority has been agreed for another meeting within a few days. There is a possibility that there will two budget cap, one for bigger teams to recognise their R&D cost and the other one for Customer teams.
