Ferrari is ready to accept a new budget cap of $150 million, but under one condition. Ferrari could agree on a new limit of 150 million euros.

In times of Coronavirus, motorsport is also heading for a financial crisis. McLaren has already registered short-time looses for two months, drivers Carlos Sainz and Lando Norris have waived their salary for three months. One reason: If Formula 1 revenues decrease more or less this year, the teams will also feel it. Accordingly, less money is distributed among them.

F1-Insider.com learned: Small and private teams in particular are therefore calling for a further reduction in the budget cap, which should apply from 2021. It is currently $175 million excluding driver salaries, marketing, travel expenses and top employees. But that’s not enough for teams like Alfa Romeo, Williams or Haas, who are already operating at a subsistence level.

These teams want to use the situation around the Coronavirus crisis to lower the budget limit even further and thus shrink the financial advantage of the top teams. Corresponding savings would of course only affect the big teams, which still work with budgets of around 400 million euros. Williams and Co. already barely exceed 125 million euros – or are sometimes far below. The measure would only further close the gap between large and small teams.

But that would be a problem with a further rapid reduction in costs. Because the current cars in development, production and maintenance are more expensive than the models according to the new rules from 2022, which drive with various standard parts, teams like Ferrari, Mercedes and Red Bull can hardly save on running costs.

You would therefore have to fire employees. Especially in Italy, where the region in the north – also around Maranello – is particularly hard hit by the Coronavirus – that would be a severe blow on the way back to normal.

Ferrari is more than aware of this, according to information from F1-Insider.com, and tries everything to prevent such a scenario.

Red Bull and Ferrari have nevertheless recognized that the royal box office can no longer be a money-burning machine. More than ever in times like this. According to information from F1-Insider.com, they are therefore apparently ready to agree on a new limit of $150 million. Among other things, provided that the development of certain parts and even the engines is frozen. The small teams are demanding a cut at $100 million.

This will be discussed in a next video meeting next Monday.

Meanwhile Toto Wolff wants sponsors to pay for the driver salaries. According to information from F1-Insider, Monster Energy is thinking about increasing their F1 commitment with Mercedes and would be willing to pay for Hamilton’s salary.