FOM/Liberty have outlined their proposals for the future of the sport from 2021 and it looks like they are planning a budget cap on the teams as well as a re-distribution of prize money once the current Concorde agreement ends in December 2020. They have set out a list of “strategic initiatives” for the next generation of F1, which will be the first re-negotiation of agreements in the Liberty era.
Chase Carey, Chairman and CEO at Formula 1, said:
“Formula 1 is a sport with a rich history. We want to preserve, protect and enhance that history by unleashing F1s 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.”
Key strategic initiatives
Power units (PU)
- 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 to build unique and original PU.
- New PU rules must be 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-of-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.
- F1s 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 make 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 streamline structure between the teams, the FIA and Formula 1.
This will be a talking point all the way through the Bahrain Grand Prix weekend, so keep an eye out for any extra news that we’ll share on Twitter and don’t forget to check out our Live Blogs for qualifying and the race and we’ll have a round up of the whole weekend, including the fallout from this (there’s bound to be some) on next week’s podcast.