2020 season to be used for budget cap test

Formula 1 CEO Chase Carey has confirmed that the 2020 Formula 1 season next year will be used to test the budget cap which is being introduced in 2021.

In order to level the playing field within the sport and allow the midfield teams to compete for podiums and race wins, Liberty Media are going to set a budget limit of $175 million dollars per season per team.

In 2020, they intend to monitor the spending of the teams to see how far they are exceeding that limit, but without the consequences of fines in place in 2021.

“We are going to use 2020, all the teams will participate in effectively a dry run as the cost cap won’t actually be enforced with consequence until 2021,” he said at a business conference on Sunday.

“In 2020 what we are going to go through is shaking out the bugs of accounting for the costs.”

Carey believes that the proposed budget cap will make Formula 1 attractive to more constructor teams to enter the sport as competitors.

Formula 1 targeting 'high-profile US team' as new constructorRead more

“It is important we create a cost cap that supports a business model that is healthy and growing and positive for existing teams and potential new teams coming into it,” the American continued.

“We’ve had discussions with potential new teams.

“All have looked at sort of steps in terms of cost discipline and a more balanced revenue distribution as probably cornerstones to creating what they think is an exciting opportunity so certainly that is a part of it.

“We feel quite positive about where we are with the cost cap, in many ways teams, some of whom had concerns or issues going in, are increasingly supportive.”

Related

More F1 news

Latest F1 news

F1 Penalty Points: Ollie Bearman closest to race ban after Japanese GP

• 1 hour ago

F1 Penalty Points 2026: Which stars risk race ban after Japanese Grand Prix?

• 3 hours ago

Toto Wolff reacts to Mercedes F1 reshuffle: 'You realise someone is more clever than you'

• 3 hours ago

Max Verstappen knew these new F1 regulations would be bad, he told everybody three years ago

• Today 11:55

Rattled George Russell is being schooled by rivals and his F1 title dream is already fracturing

• Today 10:57

Ferrari F1 suspect Mercedes skullduggery with new engine trick

• Today 09:51