175 million euro budget for next year

More 'hot air' from the FIA.
Reducing budget cost in F1 has been Mosley's pet project for a while.
Hardly workable I would have thought and definitely open to abuse in any case.

Ron Dennis seems to give a fair appraisal to this new madness.

The FIA will have to find ex-tax inspectors to examine the books and find out who is overspending, whilst the teams' accountants will have to start being more creative!!

I suppose team owners found guilty of overspending will be sentenced to join Max in the dungeon for some spanking!!

 

Very sudden drop. Ferrari, McLaren, and Toyota probably spend somewhere in the range of half a billion dollars, it sounds like they will have to lay off some workers to take care of this.

It's not like the sponsorship deals are going to change either, so the teams will be raking in hundreds of millions in extra profit.

 

"The figures proposed are 175 million Euro for 2009, 140 million by 2010, and 110 million a year later."

That comes to $270mil, $216mil and $170mil with the current exchange rate. Granted it's not as much as some teams are spending now (Toyota & Ferrari) but it's certainly close to what Renault and Williams are spending. Throw in the "unknown" butdget items and you've still got big budgets.

 

when you consider how much is excluded from the cap I wouldn't call it a cap at all. This is pretty much the budget the high end teams are working with right now, i.e. 300-400 million a year.

I guess it would prevent further spending increases however. I'm not in favor of a cap personally. Teams have proven you can win without spending boatloads and money and once you do win getting sponsorship money isn't all that hard.

 

175,000,000 Euros? I don't think any team will even get out of bed for that!

Call back when you have 450,000,000 Euros on the table and you may get to speak with one of the grounds keepers.

All joking aside, this "cap" is a joke.

 

The 110million euro budget in a few years is ludicrous. That almost eliminates the possibility of two top drivers on one team because you have to shell out at least 50 million for the driver's salaries alone.

Teams are happy to pay almost triple this amount, why stop them.

Also, if F1 wants to develop new technologies, there is little money for the teams to develop them successfully. Its seems contradictory/hypocritical at best.

 

So the accountants will have to look into ALL the books of the manufacturers that own F1 teams. How exactly is the FIA going to realistiacally police that these teams do not channel some of the reaserch and other spendings to other racing programs, affiliates and / or subsidiaries?

 

Because they're not happy to be spending the amounts that they have been and they (the teams) have spoken out in favor of the caps.

 

This is simply paying lip service to the idea of controlling costs. it is both unenforcable and nonsensical.

 

You don't seem to have read the article.

The budget limit doesn't include drivers' wage.

 

I don't know about 'long term' participants like Ferrari, Williams, McLaren, but I would be surprised if some of the other car manufacturers like Honda and Toyota favour a budget cap.
They joined F1 later than the othersand throwing a lot of money at problems, is often the only way to catch up with the opposition. In the case of Honda and Toyota, it doesn't seem to work.

Also, some car manufacturers behind some teams are not in F1 for ever, and can spend huge budgets for a few years only,as part of their strategy.
Renault, BMW or even Honda have been in and out of F1 several times.

 

+1 For once I agree with you!

 

Good to know that they are putting the mechanics and engineers out of work. The driver salaries are likely to get even more inflated as the top teams attempt to get any edge they can.

 

+1 Excellent post.

 

I swear I must be dyslexic. Still 175 mill is not a lot for F1.

 

Try saying that to the Super Aguri team!

 

True, I'm not sure if its true or not but the Speed guys said the catering budget for McLaren was bigger than the entire budget for Super Aguri, sounds kinda fishy (no pun intended ) but could possibly be true.