Brown: Mercedes will have to lay-off people

Formula 1 and stakeholders have (reluctantly) agreed on an annual budget cap of $175-million over five seasons from 2021-25, although there is provision for an upward adjustment for inflation. Notably, the amount does not include expenditure such as driver salaries, marketing expenses and engine related costs.

In a wide-ranging interview with Auto Motor und Sport, Brown gave his views on the combined F1/FIA proposal sent to teams, "Nothing in the document was a surprise. We've been talking about these rules for quite some time. Of course, there are things that I would like to see done differently and I think others feel the same."

"But I can't imagine that much will change. There is still some fine-tuning to be done but it makes no sense to fight for changes where there will be no changes. That's wasted energy.

With regards to the &175-million plus extras, the McLaren boss said, "It's still a big sum. The most important thing is to give the fans a good show. I do not think it takes so much money to do that."

"So why not let the ten teams compete on a similar budget? That would make the sport less predictable, bring more surprises. In the end, the best teams will win in the end."

"Look at IndyCar. The Penskes, Ganassis and Andrettis still win the championship. But they do not win all races. There are now and then winners from other teams. And that's good for the sport. A lower budget would allow for that."

Brown is aware that extra money does not always translate to better performance on track and closing the gulf to the top three teams is not just about unlimited access to a healthy bank account.

"We'll have to do a better job," acknowledged the American. "Even with a budget cap, we first need to improve ourselves, in all disciplines. Then we have to see where we should invest money under the budget cap, just as the others have to do."

The big teams are staff-heavy and will be forced to redeploy their workforces or lay-off people as they conform to the financial regulations. Some teams will not have to face such consequences.

Brown suggests Mclaren are one of these, "We're fine. For us, it's about setting priorities. We want to use our money better. For us, the budget cap is no problem, but a team like Mercedes has to get rid of a few hundred people and that is cause for concern."

"This creates uncertainty. People will be asking: Will I be part of it? Will I have to go? Must I do something else? I hope Mercedes can distribute their extra people to other projects because it's never nice to let people go. But even then, job cuts for a F1 team will be a change," he added.

Dieter Rencken reports on RaceFans, "Over the last five years the average F1 team has grown from 450 staff to 620 – an increase of more than a third. Haas’s 250 staff is approximately as many Williams had when it won the 1996 championship. During a previous successful championship campaign in 1987, Williams had just 85 staff."

"Today Williams closely matches the levels of spending and staffing targeted by the budget cap plans, yet it finished 2018 last in the championship."

Budget cap sceptics ask the question: How will you police a budget cap? While pointing to the 'extra expenses' as a grey area ready for exploitation by well-heeled teams such as Ferrari, Red Bull and Mercedes.

https://www.grandprix247.com/2017/11/07/ecclestone-reality-is-f1-budget-cap-wont-happen/