During the coronavirus crisis, many Formula 1 teams switched to survival mode. That is why no one has signed the new Formula 1 contract to date. That won’t happen until the crisis is over. The old Concorde agreement expires at the end of the year, as the new Formula 1 contract has been on the lawyers’ table since November 2019. In the meantime, the technical regulations and the financial agreement have been adapted to the wishes of the teams and their legal advisors.
Recently there were only differences about how much the rights holders should pay out to the teams. Liberty expected the first signatures in April, but that has moved a long way since the outbreak of the coronavirus crisis.
A team leader said: “Before any team signs up for five years, we all need to know if we can survive this crisis. There is currently no talk of this topic. There are more important things to do now.” Seven teams are asking the FIA and F1 management to give clearer cost-saving signals than just homologating the 2020 chassis for 2021 and postponing the launch of the new cars to 2022.
At a conference of the ten technical directors on the question of which other components could be taken over next year, not much came out. “They are not allowed to decide anything anyway. In the end, the team leaders are asked,” it says.
One thing became clear during the team bosses’ recent talks about austerity measures. Ferrari and Red Bull have reservations. Mercedes is quiet. The rest demand freezing of gears, wheel carriers and suspensions. And a drastic reduction in budget capping.
FIA President Jean Todt and Formula 1 boss Chase Carey have apparently recognized that the coronavirus crisis offers them the golden opportunity to finally cut costs dramatically. However, not all teams agree. Ferrari and Red Bull are against the homologation of the gearbox for 2021. According to German automobile magazine ‘Auto Motor and Sport’, Scuderia Ferrari and Red Bull found out that Mercedes connects the engine and gearbox with only 4 stud bolts, while the Maranello team and Red Bull need 6. The consequence: the gearbox is therefore a bit wider. This could be an aero disadvantage. Both teams therefore want to build new gearboxes for 2021.
If the budget cap is now reduced, adjustments would also have to be made, which would have to be approved by everyone. It is therefore quite possible that Liberty may only offer the teams a one-year contract extension to overcome all the bureaucratic hurdles. But that harbors risks and opportunities.
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