145 million: Funds compromise formalized at assembly on Monday

(Motorsport-Total.com) – The tedious renegotiations on the only in October 2019 budget ceiling of 175 million US greenback official year in Formula 1 are apparently nearing completion. In an assembly between Hunch Carey, Ross Brawn (both Formula 1) and Jean Todt (FIA) on Monday a new compromise of 145 million greenback specifically envisaged.

Brawn announces in a interview with 'Sky' that the Particulars of the new budget limit should be communicated to the groups “in the next few days”. They are now finally in the “final fragment”, a compromise that is sustainable in his eyes has been formulated, and “very soon everything will be clear”.

After in particular Ferrari and Mercedes expressed concerns about it , the so-called “cap” under 150 million greenback, the 145 million now a compromise for 2021 with which everyone involved can live. In the medium term, the budgets of the Formula 1 groups could be reduced even further.

“The message is clear: we have to reduce the costs,” says Brawn. “We started with 175 million. It was a long battle to get there, and with the crisis we are in, we are going to 145. The discussion is now more about how far we can go in the next few years. “

Budget limit: only the final decision is missing

The Groups, that reports the 'BBC' , should be informed in the next few days by a rapid about the measures discussed today. Then there will be a final round of discussions with everyone involved: Groups, Formula 1, FIA. Ideally, concrete solutions can then be presented after weeks of negotiating, but little concrete has been achieved.

The large groups in particular also have to be a little selfless during the corona crisis, Brawn demands: “The original goal the budget limit battle a more balanced field. I think in the grief we are now in, the economic sustainability of Formula 1 has priority. This applies to the large groups as well as the small ones. “

Formula 1 does not only want to support the economic sustainability of the business models for the groups with reduced costs. End 2020 the existing “Concorde contracts” expire. In these, the distribution of Formula 1 income is recorded between rights holder Liberty Media and the ten groups.

For years, critics have been calling for 2013 applicable contracts that these must be redesigned. Due to various special bonuses, Ferrari would still have third place in the prize money ranking, even as the World Cup last occupied. These bonuses should not be completely abolished within the framework of the new agreement, but should be greatly reduced.

Brawn explains the concept: “We reduce the sums that can be spent in Formula 1, and we distribute the prize money more evenly among the groups. ” The new agreements have not yet been signed, but: “Especially the midfield teams will receive a much larger share of the prize money,” he announces.

“A good midfield team should be able to achieve podium places to win, maybe even a win. And they should be able to make a small profit. If we succeed, we will face a very sustainable future. “

Aid package: Liberty Media publishes 1.4 billion greenback

It is now also known that Liberty Media is ready to launch a short-term aid package in the amount of 1.4 billion greenback, among other things, to pump up the prize pool at a time when revenues for the groups collapse due to missing grands prix and reduced sponsorship revenues .

“Liberty has shown strength and made this aid fund available,” confirms Brawn. “We are currently evaluating to what extent we should support the prize pool in the next six to twelve months. Of course we want to keep the groups alive. If we lose groups in this fragment, it would be a tragedy.”

The corresponding plans for aid payments should be specified by the end of May: “We have to look at what the racing calendar looks like, what income the groups will have – and then we will sit down with the groups as we plan our trip together because the future looks so good that it would be very frustrating to lose groups now. “

On the lead idea by Christian Horner (Crimson Bull) , the development of new cars for the planned Reform regulations instead of 2022 even on 2023 to reduce the additional financial burdens during the corona crisis, Formula 1 will not go into contrast .

It will be “definitely” at 2022 lead Brawn clarifies – and adds: “Some groups have campaigned to postpone it for another year. I think there is a reasonable need to take these cars with us next year because we are in the middle of this pandemic. That is completely justified. “

However, he does not consider any further postponement to be expedient, because he believes that the reform regulations are important for leading Formula 1 into a sustainable future:” The cars that we have now are so complex that the more money you spend, the faster you get. “You have to seek to” flatten “the effect that more money automatically means more athletic success.

Brawn explains: “We want the great groups to continue winning. We have to protect the integrity of Formula One. Formula 1 is a sport and the best in sport should win. But I think with the new rules and the new cars we will have competitive races in the future. That was postponed. But 2022 the rules apply to every tumble. “