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how-will-the-formula-1-salary-cap-work-for-2023?

(Motorsport-Complete.com) – A upper salary limit for both drivers and the high-crew private from 2023 has come a step closer since a meeting of the Formula 1 commission following the Portuguese Astronomical Prix. But how will it work? And can it be controlled?

Lewis Hamilton

© Motorsport Photos

Drivers should also be affected by the savings in the future Zoom Glean

The particulars still have to be approved. So far it has been agreed that curbing salaries is the next logical step after the budget cap has been introduced, which will come into effect next season.

Earlier this year, when the Inaugurate of the season 2020 was postponed and the Formula 1 organization had limited income to pay for the teams, the sports activities stakeholders made a wise decision about future expenses

Capping of driver salaries as a logical step

The original budget ceiling warfare on 165 Millions of buck have been set, but after discussions it became drastic on 145 Millions Buck for 2021, then on 140 Millions Buck for 2022 and 135 Million Buck for 2023 reduced.

However, there is a long list of items that are not included in the budget ceiling. It essentially covers the costs of building and operating the cars. Exceptions include the salaries of the drivers as well as the top three paid employees on each team – usually including the team leader and technical director.

As everyone involved is aware that the financial implications of COVID – 18 could still be felt for years, the team bosses have now agreed, drivers and to include yourself in the cost coverage.

Maximum 30 Million Buck for driver pairing

However, the restrictions will not apply until 2023 come into effect. Contracts that have already been signed and that extend to the relevant season – such as Charles Leclerc’s contract with Ferrari – are not affected and are subject to a transition period. Until the rules are published, there is also a window in which new contracts can be agreed.

The basic idea is that the teams have a fund of a maximum of 30 Have millions of buck available that can be shared between two riders. Most will spend significantly less than that. Theoretically, the bill could be zero if there are two paydrivers who bring sponsorship money and do not receive any salary from the crew.


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Teams can also have more than 30 Spend millions of buck on drivers if they so choose. But it was agreed that any excess would be deducted from a team’s operational budget cap. It doesn’t work the other way around: Teams cannot receive a credit if they comply with the restriction of 30 Millions Buck for Do not exhaust the driver in order to output the field otherwise.

Weighing up investments in the car and the drivers

One of the main topics of discussion at the Formula 1 commission meeting was the idea that the 30 Millions of buck could simply be lumped together with the rest of the budget cap, so that for the Total amount 64 Buck plus 30 million buck or 165 million buck.

In the tumble, the teams could decide how the allocation should be made. Haas boss Günther Steiner, whose crew never exceeded the upper limit of 30 will reach millions of buck for driver salaries in this concept a way into the future.

Günther Steiner

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Günther Steiner sees no quick solution in the salary question Zoom Glean

“I think there will be this transition point at some point,” he said in Imola. “In the sense that if you invest in drivers, you cannot invest in the car. But you have to take these things step by step. The ultimate goal would be: how much do you invest in the drivers and how much do you invest in the car? But we can’t do that right away. “

As part of the budget cap? That speaks against it

“We have to stabilize these financial regulations first so that we know exactly how they work, and then maybe one I have always said that if we have a financial regulation, we can now work with it, refine it, just as we do with technical regulations. “

The idea that 25 However, adding millions of buck to the rest of the budget ceiling met with resistance, and that was it for logical reasons, because theoretically a crew could switch from a cheap to an expensive pair of drivers from year to year or vice versa.

This goes hand in hand with the concern that if you go from cheap to expensive Drivers changes, other team members may have to be fired in order to have the money. And that would not send out a very good message.

Lush sponsorship funds distort the overall picture

This scenario led to the agreement that the payments should come from a separate pot. Only if a crew decides to use the 30 Going over million buck, it would affect the total budget cap

The gray area that needs further investigation and refinement is how to prevent teams from circumventing a salary cap by channeling funds from other sources.


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A theoretical example: There is little point in limiting the payments from Mercedes to Lewis Hamilton if a third party like Petronas redirects part of its sponsorship budget directly to the driver in order to top up his official team salary.

Disregard should result in severe penalties

This is a complicated and controversial topic. Some driver salaries are paid directly by the team sponsors anyway, while most of them have their own personal business with companies that are not affiliated with their teams – and logically, this additional income should not be limited by the new rules.

It’s a minefield. However, there are successful restrictions on hidden payments in US sports and the Formula 1 Cooks are confident that this can be police monitored. As with the upper limit of the main budget, severe penalties are also imminent for any missteps.

The salary ceiling is an emotionally charged topic, and a particularly difficult one for Toto Wolff, who is currently with Lewis Hamilton on a future contract discussed. Whether the year 2022 already plays a role on the radar of the two, is another question.

Wolff: “Everyone should benefit from growth”

“It is clear that the Drivers who are the best in the world in Formula 1, “said Wolff in Imola. “And they should earn high salaries like all other top stars in sports activities. Today, these salaries or their income are limited to what they are used to be received from the crew, because the share of brand advertising, sponsorship agreements and rights is very limited.”

Lewis Hamilton, Toto Wolff

© Motorsport Photos

The contract negotiations between Lewis Hamilton and Toto Wolff are still ongoing Zoom Glean

“i I think that is why it would be interesting to sit at a table with representatives of the drivers and the drivers themselves and ask how we can align united states of America in the long term so that everyone benefits from growth in Formula 1. In fact, how American sport has done it without really damaging the future earnings of the drivers. “

And used to be with the team bosses? They realized that capping drivers’ salaries and not their own would not look good. The complication of restricting payments to the top three employees, however, is that the arrangement must be fairly balanced between the ten teams, and yet each crew is set up differently.

Some are the team leader and the CEO are one and the same person. With others they are not. At McLaren, for example, Zak Brown spends a large part of his time on non-Formula 1 projects, how would his salary be divided?

And where would someone like Helmut be Marko, technically an employee of the main Crimson Bull company, but involved in two teams, fit in? Most team bosses are pure employees, while others – especially Toto Wolff at Mercedes – are also shareholders, used to be makes things even more complicated.


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#10: Fahren dürfen nur die Hinterbänkler - Sie ist der große Trumpf der Williams-Mannschaft. Doch nicht nur deshalb will die FIA der aktiven Radaufhängung beim Kanada-Grand-Prix 1993 einen Riegel vorschieben. Die fortschrittliche, aber unglaublich kostenintensive Technik wird von den Kommissaren bei der technische Abnahme als Fahrhilfe eingestuft und bei allen Teams für nicht-regelkonform befunden worden. Gleiches gilt für die Autos, die auf eine Traktionskontrolle setzten.Hintergrund: Die Systeme beeinflussen hydraulisch die Aerodynamik respektive entziehen dem Piloten teilweise die Kontrolle über den Vortrieb. Es entsteht die Drohkulisse, dass die Scuderia-Italia-Hinterbänkler Michele Alboreto und Luca Badoer die einzigen Starter in Montreal sind. Das Verbot wird bis Anfang 1994 aufgeschoben, dann aber durchgesetzt.

# 10: Only the backbenchers are allowed to drive – it is the Williams team’s big trump card. But that’s not the only reason why the FIA ​​wants the active suspension at the Canada Astronomical Prix 1993 put a bolt forward. The advanced, but incredibly cost-intensive technology is classified by the inspectors as a driving aid during the technical inspection and has been found to be non-compliant by all teams. The same applies to the cars that rely on traction control. Background: The systems hydraulically influence the aerodynamics and partially remove control of the propulsion from the pilot. The threat arises that the Scuderia Italia backbenchers Michele Alboreto and Luca Badoer are the only starters in Montreal. The ban will continue until the beginning 1994 postponed, but then enforced. Photo gallery

In addition, payments for top executives are usually on coupled with success, with substantial bonuses being paid for race wins and titles. Official records show that the highest-paid director of the Mercedes team, who we can safely assume to be Wolff, has a year 2019 6.9 Million pounds, used to be reflects another double title.

Salaries of the team members in the big pot?

The size of the pot for the three best paid team members has not yet been determined. One option under discussion is that – unlike the drivers – this number could be added to the overall budget cap.

That would work for the top executives because of the payments and contractual arrangements tend to be more stable over time, without the potential for an up and down observed in the drivers.

So there would be the possibility, instead of the total budget of 135 Millions Buck for 2022 by, say, 5 million buck, the Cooks’ salaries simply in this original number of 135 Include millions of buck in order to push the upper limit and further reduce total spending.

Seidl sees “not really many negative examples”

The Team bosses have greeted the salary cap with varying degrees of enthusiasm. “We support the discussion about the introduction of a salary cap for drivers,” said Andreas Seidl from McLaren. “I don’t really see many negative examples, and I think there are enough examples in other sports that introduction is actually feasible.”

Andreas Seidl

© Motorsport Photos

For Andreas Seidl there is no question of the need for cuts Zoom Glean

“I just think it’s important that we also introduce an upper limit for the three highest salaries of each team. For united states of americaist it is simply the next logical step after we introduced the budget ceiling next year. “

” We all know that we are facing difficult times financially at the moment. We also don’t know how long exactly this COVID deliver of affairs lasts and what effects it will have in the medium and long term has stig. That’s why we support these discussions on every tumble. “

Horner:” It should be dictated to the teams … ”

Christian Horner, whose crew Crimson Bull Racing plays with an ongoing, multi-year contract with Max Verstappen in the high salary category, sounded less convinced.

“The discussion about a cap is nothing more than that at the moment,” he said. “There are no fixed rules or regulations, it has not been voted, it is not part of one sports, financial or other regulations. “

” If a team decides to spend more than the upper limit, then it will be deducted from the amount of the total budget. So it’s not about limiting the amount a driver can earn, but simply dictating to a crew that there is a maximum amount for the drivers. Everything used to be beyond that would have to come from the overall budget. “

Binotto remains cautious: No decision yet

“Obviously the cost is sensitive to anyone at the moment and a reasonable answer has been sought. We’ll see where this leads. But it is far from being a set of rules because there are all sorts of legal ramifications that need to be checked to see if it is actually workable. “

Ferrari boss Mattia Binotto, who has signed a long-term contract with Leclerc, also emphasized that the particulars will be important.

Charles Leclerc, Mattia Binotto

© Motorsport Photos

Charles Leclerc has up to and including 2024 signed by Ferrari Zoom Glean

“What I can say is that In my opinion we haven’t made a decision yet, “said the Italian. “The only decision that has been made is that we are all ready to analyze the deliver of affairs further in order to assess which arrangement can be used.”

Effects on new driver contracts unclear

“We have a long-term contract finished with Charles, so it’s a tricky business. I don’t think there is an easy solution. We have to really deal with it and understand all of the implications that I am not yet fully aware of. So I’m open-minded, but no location. “

It’s a complex topic, but both Formula 1 and the FIA ​​have some clever people who are working on the financial regulations and who have already dealt with the general budget ceiling .

Now the question arises as to the timing and how this will affect all new driver shops that come to the current Ma prices can be agreed or extended before new restrictions come into effect. One man who definitely won’t be making mega-offers in the foreseeable future is Franz Tost from AlphaTauri. He is of the opinion that top drivers are paid too much.

Less income means lower wages

“We don’t know what it will be like next year,” he said. “Whether or not spectators are admitted to the races. And if spectators are not admitted, it means that the income will be reduced. The FOM will get less money, we will have less income.”

“The teams are going to get less, and I see no reason why the drivers shouldn’t get less. First of all, they should be happy anyway to sit in such a fantastic car and have such a great job. And then they get some money. This is how the future will be … “


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