The first formula is already ruining the number of teams that would spend their money to win the world championships. Now tens of millions of dollars paid for astronauts like Lewis Hamilton are under control.
Federation Internationale de l’Automobile, a Paris regulator, is discussing a pay-per-view with F1 Liberty Media, sports teams and pilots, who are due to return to the Monaco Grand Prix after the 2020 tournament has been canceled due to the epidemic.
“Most of the laws like this are still at the beginning of the negotiations and so far no action has been taken on what has been said or if this is what we are going to do,” the FIA told the Financial Times.
The negotiations came after an agreement was reached on the group’s spending last year, along with an agreement to allocate funds accordingly. One of the issues they negotiate with the chasing kings is the $ 30m split between two drivers each year, and to create awareness for top executives such as Hamilton, whose salaries exceed the amount.
Otmar Szafnauer, head of the team at Aston Martin F1 Group, another word for caption “writes a caption as a way to keep the meaning hidden [racing] working with the driver is a big part of the job. ”He added that teams should be flexible to pay more drivers if they cut costs elsewhere.
The rise in fiscal policy marks the next phase in the F1 transition led by Liberty Media, the car of US billionaire businessman John Malone, which acquired F1 of $ 8bn in 2017.
This season is the first to have a $ 145m joint venture, which was merged last year and aims to reduce the number of potential Mercedes, Red Bull and Ferrari riders to win.
The cap is a mess Concorde Alliance oversees F1’s distribution of funds joined in 2020 after a three-year war between Liberty Media and teams. But the limit, which is expected to drop by another $ 10m in the next two years, excludes salaries paid to drivers and three top employees, where interest has now changed.
A person close to F1 said “because of the drive” by continuing to focus on price controls and to “be able to run the process better” [the] Good drivers can be attracted to other teams and reduce the cost of F1 ”.
Zak Brown, chief executive of McLaren Racing, said the cap would not mean that drivers’ salaries would fall. One way, he said, is to increase the budget for teams, by $ 30m, for example, plus driver fees. Groups should feel free to donate money anywhere to pay more drivers. The same measures can be applied to the remuneration of top employees.
“This is what all the parties have discussed,” Brown said. “Ensuring that the game doesn’t return to its bad habits is crucial and if you have a few things that need to be out of the game cup that are still sports-related, it looks like we have a business that isn’t finished.”
Advertisers poured money into the game last year, and Williams Group exchanging hands with McLaren raises £ 185m from MSP Sports Capital, as the epidemic disrupted the 2020 climate and affected party finances.
But setting a limit on driver pay in the name of the economy threatens a new opportunity within F1 after years of negotiating higher prices. “Obviously, when you put this on the table, the drivers have a lot of disadvantages,” said Alejandro Agag, founder of the Formula E and Extreme E.
Teams need to reduce the need to cut costs on the risk of expelling star astronauts who attract sponsors, fans and journalists.
“I don’t know if it’s just to bring justice [drivers] under a high price tag, “Damon Hill, who won the 1996 World Cup with Williams, told FT.” Driving work is short. “
Hamilton, who this week named the F1 “billionaire club” as he encouraged the game to be more inclusive and accessible, has raised concerns about funding.
The British star, who has been in the middle of seven consecutive Mercedes games, is preparing for a new deal. At the age of 36, he is nearing the end of his career.
A source close to Mercedes said the cup would not be effective while Hamilton, the winner of the F1 World Cup, would still be running.
Although Mercedes helps launch a soft cap, great team Toto Wolff has stated that any changes should be introduced gradually from 2024 to prevent the loss of sports “superstars”.
The prices are also high for Red Bull, who have trusted Max Verstappen, 23, to win their first competition since 2013.
“We understand the responsibility to work together to reduce costs in all areas and it is part of the negotiations, but this is a decision that requires the right approach and cooperation between all parties, which has not yet been achieved,” Red Bull said. “We also need to consider the athletes involved because this has a direct impact on them as well as the teams.”
Accounting is a difficult and difficult task for the police, according to officials at the game, who warned that there are many ways to avoid the rules such as asking donors to pay for transportation.
Any payments are also difficult because group managers often have the responsibility to go beyond the cost of their F1 agencies, meaning they can be paid by different sections of the larger parent group. “It’s very difficult,” Agag said. “There are a lot of ways around a paycheck.”