F1 teams agree to cut costs with budget limit of $145m - report

Formula 1 teams have agreed to cap spending at $145 million next season as sport attempts to counter financial fallout from coronavirus pandemic, media reports claimed. With 2020 season yet to get underway and with 10 of scheduled 22 races already eir cancelled or postponed, 10 teams hammered out new agreement. BBC reported that teams voted to lower budget cap to be introduced in 2021 by $30m to $145m.

F1 teams agree to cut costs 

This will be reduced again to $140m in 2022 and $135m for period 2023-25. Or measures were also agreed, said report, including a research-and-development handicap system. Friday's agreement still needs to be officially approved by world motorsport council of governing body FIA next week.

Initially, a spending cap of $175 million was set to be introduced next year in a bid to help even up competition. But that was before international sport was halted by global pandemic. Earlier this month, F1's managing director Ross Brawn had warned of a "trdy" if teams were forced out of business.

"It has become very clear, from talking to manment of teams. mess is clear. We've got to cut costs and have a reduction of cost cap... If we lose some teams in this period it would be a trdy," he said.

"re is going to be a much more equitable prize fund in new agreement. midfield teams in particular are going to be much better off in terms of ir proportion of prize money.

"So a good midfield team should be able to score podiums, maybe a win, and should be able to show a small profit. If we can achieve that we should have a very sustainable future." 

Im credits: AP