Cost caps and cheaper engines among Liberty's vision for F1 in 2021

Liberty Media have confirmed that "cheaper, simpler" engines and budget caps are among their plans for Formula 1 in 2021 and beyond. A change of power-unit regulations and cutting costs are among the issues that have prompted Ferrari to issue threats to quit F1.

F1's owners are keen to pursue a $150million budget cap per year, according to Auto Motor und Sport, although the likes of Ferrari and Mercedes are estimated to currently spend way beyond that figure.

Another sticking point for the Scuderia is a proposed change to F1's legacy payments, which are currently weighted heavily towards older teams like Ferrari.

"Formula 1 is a sport with a rich history," Liberty CEO Chase Carey said in a statement.

"We want to preserve, protect and enhance that history by unleashing F1's potential, by putting our fans at the heart of a more competitive and more exciting sport.

"We are driven by one desire: to create the world's leading sporting brand. Fan-centred, commercially successful, profitable for our teams, and with technological innovation at its heart."

LIBERTY'S VISION IN FULL

Power Units

• The PU must be cheaper, simpler, louder, have more power and reduce the necessity of grid penalties.
• It must remain road relevant, hybrid and allow manufacturers and build unique and original PU.
• New PU rules must e attractive for new entrants and Customer teams must have access to equivalent performance.

Costs

• We believe how you spend the money must be more decisive and important than how much money you spend.
• While there will be some standardised elements, car differentiation must remain a core value.
• Implement a cost cap that maintains Formula 1 position as the pinnacle of motorsport with a state-f-the-art technology.

Revenues

• The new revenue distribution criteria must be more balanced, based on meritocracy of the current performance and reward success for the teams and the Commercial Rights Holder.
• F1's unique, historical franchise and value must and will still be recognised.
• Revenue support to both cars and engine suppliers.

Sporting and technical rules & regulations

• We must made cars more raceable to increase overtaking opportunities.
• Engineering technology must remain a cornerstone but driver's skill must be the predominant factor in the performance of the car.
• The cars must and will remain different from each other and maintain performance differentiators like aerodynamics, suspensions and PU performance. However, we believe areas not relevant to fans need to be standardised.

Governance

• A simple and streamlined structure between the teams, the FIA and Formula 1.