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.
“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.”
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