Jean Todt, president of the FIA, has said motorsport’s global governing body remains focused on introducing a cost cap system into Formula One next year, despite opposition from team owners who believe the concept is unworkable.
F1 is seeking to introduce a budget cap from the start of 2015, with a December meeting of the F1 Strategy Group and the Formula One Commission revealing that the “principle” of a global cost cap had been adopted. The limit is proposed to be applied from January 2015 and a working group comprising the FIA, representatives of F1’s commercial rights-holder and team representatives have been discussing the matter.
Todt told the Bloomberg news agency that the FIA would employ teams of auditors to check that squads comply with the restrictions. The likes of McLaren co-owner Ron Dennis and Red Bull Racing team principal Christian Horner have said the size and complexity of organisations that are concerned with Formula One and related businesses makes it impossible to police team finances. However, Todt said: “That was true in the past but I don’t think it’s true now. We will work with expert audit companies; we are already working with them.”
The objective of the budget cap working group is to have regulations approved by the end of June. However, it is not the first time that the sport has attempted to control its costs. Most recently, former FIA president Max Mosley tried to introduce a budget cap of £30m (€36.4m/$50.2m) for the 2010 season, but the proposal ultimately floundered amid opposition from teams.
Todt said the FIA is looking at how other sports control spending, adding that F1 needs financial controls to narrow the gap between the teams and end the practice of drivers being required to secure their seats through bringing sponsorship dollars – an aspect that has become increasingly prevalent in modern-day F1.
Addressing concerns that teams would find it easy to circumvent budget cap regulations, Todt said teams would have to sign a contract committing to a cost cap and wouldn’t want to break the rules. “A major player in motorsport will not take the risk of doing things they shouldn’t do,” he added.
source: sportbusiness
