The possibility of drivers having their salaries capped under a broadening of Formula 1’s financial regulations is up for discussion.
Some of Formula 1’s leading team bosses have revealed the latest on how discussions to ring-fence driver salaries as part of a broadening of the financial regulations are progressing.
F1 introduced financial regulations ahead of the 2021 season, with a monetary limit imposed on the teams to restrict their spending.
However, the budget cap only applies to the performance and operations side of a team, with many exemptions to the rules. These include personnel travel costs, marketing activities, employee bonuses, property and utility costs, human resources and finance departments, as well as the salaries of the race drivers, the reserve driver and the salaries of the three highest-paid employees.
The budget cap for 2022 is limited at $140million, although some of the teams are clamouring for an increase to that limit due to spiralling inflation and logistics costs. However, it is driver salaries that appear to be next in the firing line, with the aim being to bring these under the cap of the financial regulations.
“That’s a point we started discussing a month ago together with all the teams, F1 and the FIA,” Ferrari boss Mattia Binotto said at the FIA press conference in Monaco.
“We understand the importance to try somehow to cap the overall expenses. Obviously, there is not only the three top key personnel in the team, there are not only the drivers, there is the engine and the power unit as well, for which there will be a budget cap in the future.
“So we are discussing it. There is not a straightforward solution, especially for a drivers’ salary cap. But no doubt we are discussing it and trying to understand what can be a solution.”
The issue for F1 is to ensure a salary cap does not result in other, uncapped, series being able to tempt drivers away with higher salaries, as well as the problems with introducing a…
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