Report: Teams receive official $145m cost cap proposal

The 10 Formula 1 teams received the official budget cap proposal from Liberty Media and the FIA on Tuesday, according to The Race.

Following the postponement of the start of the F1 season due to the coronavirus pandemic, many of the teams have pushed to lower the cost cap from its original $175 million figure, with $145m being agreed for 2021.

According to the proposal now issued, that figure will come down to $140m in 2022 and then $135m in 2023 as the sport looks to cut spending.

Ferrari have been reluctant to see the cap come below $145m and team principal Mattia Binotto suggested recently that the team could be forced to deploy its “racing DNA” elsewhere, if the cap continued to fall.

The proposal commits to keeping the cap at $135m for 2023, 2024 and 2025, which is reportedly Liberty and the FIA’s attempt to address Ferrari’s concern.

The teams will now vote over whether to adopt the adjusted cap, with the new safeguard clause meaning only 60% of the teams need to vote in favour in order for it to be included in the new regulations.

Certain areas of spending will not be included in the cap, such as driver salaries, the wages of key personnel and marketing expenses.