Ferrari’s CEO Louis Camilleri is well aware Formula 1 needs a budget cap in order to stop the sport from “slowly dying”. He suggests Formula 1 needs to the budget cap to ensure the sport is economically viable. In 2021, a budget cap of $175million will be in place. However, this only covers certain aspects.
The cost of drivers salaries, engine development and the company’s three top earners will all be exempt from the cap. Louis Camilleri explains how the planned budget cap for the 2021 season is a good start but needs to be stricter in future years to help the sport.
“I think we’ve reached a relatively good compromise in terms of the cost cap, which today applies to the chassis,” he said in a conversation with the media and is quoted by Autosport.
“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.”
The outlines for the 2021 rule and regulation overhaul were revealed ahead of the United States Grand Prix on October 31, 2019. Formula 1 and the FIA confirmed changes may still be made.