INSIDER
20 F1 RACING DECEMBER 2019
the long-term financial
sustainability of the teams.
It will be set at $175 million
for 21 races withplus or
minus $1 million for each
race above or below 21.
“You may remember
the gentlemen’s agreement
between the teamsknown
as the Resource Restriction
Agreement,” said Ross
Brawn.“But there’s not
many gentlemen in the
paddockI’m afraidand
that was afail ure – but this solution has teeth.If you
fraudulentlybreach the financial regulationsyou will lose
your championship.It will have serious consequences.It
is essentialfor the future of F1that we control spending.”
Formula 1has sourcedoutside accounting experts, such
as Deloitte who have helped control spending in football,
and the ruling is being drafted by formerMercedes CFO
Nigel Kerr, whois no w F1’s director of finance.
But just asthe current technical and sporting regsare
constantly in discussion andrefined, financial rules will
also need time to mature. Exclusions tothe $175 million
budget cap will be driver salaries,the threehighest paid
executives of a team, marketing, non-F1 activities, FIA
entry fee and driver superlicence costs.
When aske d whether acost cap would be worka ble, one
high-level team source said: “Weall fill in our taxform s
and if wedon’t tell the truth wego to prison. Idon’t see
why it can’t be done.Companies publish theirfigur es an d
if they start fiddlingthose, they really are introuble.”
Teams willbe gi ven time to adjusttheir operating
structures and there is aproposed deadlineplanned. In
2020 teams will have the optionto submittheir financial
data on a voluntary basis on thefollowing dates. On 30
June, 2020there will be an option to submit financial data
for 20 19. The followingMarch will beanot her submission
date for 2021 and on 31 Ma rch, 2022 there will bea
mandatory submission of 2021financial data.
“The 2021 regulations are everythingthat we’vewanted
to see, particularly the financial regulations,”says team
boss Claire Williams. “They are a step in the right direction
to ensure that the sport – but also teams likeours–
remain sustainable for thefuture. We’re allaware of how
unsustainable F1 is froma costperspective. To have a level
of cost-capping at this firstjunctureis important to teams
like ours. I don’t think that can beunderestimated.”PICTURES
IF YOU FR AUDULENTLY BREACH THE FINANCIAL
REGULATIONSYOU WILLLOSE YOUR CHAMPIONSHIP
““
PICTURES:FORMULA1;MOTORSPORTIMAGESQ
Q
Q
Q
Q
Q
Q
Q
Q
Q
F
MASTERMIND
Yourchosenspecialisedsubject:
theworld’sgreatestsportEsteban Oconwill return to the Formula1 grid
in 2020, but withwhich team did he make his
practice debut in 2014?
Which current driverhas two podiumsto his name
but has yetto lead a single lap of an F1 race?
Which two current circuits on the calendar first
held a world championship race in the 1980s?
True or false:Red Bull has won at least one race
a year since its first victory in 2009?
Which driver finished 20th and last in the
standings in 2018 with a single point?
The Ford Cosworth DFV engine won its first race
in 1967, but when and where did it win its last?
At which race didTeo Fabi claimToleman’s single
pole position inFormula 1?
Which driver won the most world championship
races in the 1977 F1 season: Jody Scheckter,
Mario Andretti or Niki Lauda?
Whichteam has woneight of the 30 Dutch GPs
held so far?
Who was Romain Grosjean’steam-mate at Haas
beforeKevin Magnussen?Hungaroring (1986) and Suzuka 3 Lance Stroll 2 Lotus 16 Sergey Sirotkin 5 failed to win in 2015False, it 4 (1987)German GP 19857 Monaco 1983 (DFV) Detroit 1983 (DFY)Esteban Gutiérrez 10 Ferrari 9 ), the others 3Andretti (4 8In strivingto develop
these new cars,teams
will be subjectto a
stringent bud get capROSS BRAWN
INSIDER
20 F1 RACING DECEMBER 2019
the long-term financial
sustainability of the teams.
It will be set at $175 million
for 21 races withplus or
minus $1 million for each
race above or below 21.
“You may remember
the gentlemen’s agreement
between the teamsknown
as the Resource Restriction
Agreement,” said Ross
Brawn.“But there’s not
many gentlemen in the
paddockI’m afraidand
that was afail ure – but this solution has teeth.If you
fraudulentlybreach the financial regulationsyou will lose
your championship.It will have serious consequences.It
is essentialfor the future of F1that we control spending.”
Formula 1has sourcedoutside accounting experts, such
as Deloitte who have helped control spending in football,
and the ruling is being drafted by formerMercedes CFO
Nigel Kerr, whois no w F1’s director of finance.
But just asthe current technical and sporting regsare
constantly in discussion andrefined, financial rules will
also need time to mature. Exclusions tothe $175 million
budget cap will be driver salaries,the threehighest paid
executives of a team, marketing, non-F1 activities, FIA
entry fee and driver superlicence costs.
When aske d whether acost cap would be worka ble, one
high-level team source said: “Weall fill in our taxform s
and if wedon’t tell the truth wego to prison. Idon’t see
why it can’t be done.Companies publish theirfigur es an d
if they start fiddlingthose, they really are introuble.”
Teams willbe gi ven time to adjusttheir operating
structures and there is aproposed deadlineplanned. In
2020 teams will have the optionto submittheir financial
data on a voluntary basis on thefollowing dates. On 30
June, 2020there will be an option to submit financial data
for 20 19. The followingMarch will beanot her submission
date for 2021 and on 31 Ma rch, 2022 there will bea
mandatory submission of 2021financial data.
“The 2021 regulations are everythingthat we’vewanted
to see, particularly the financial regulations,”says team
boss Claire Williams. “They are a step in the right direction
to ensure that the sport – but also teams likeours–
remain sustainable for thefuture. We’re allaware of how
unsustainable F1 is froma costperspective. To have a level
of cost-capping at this firstjunctureis important to teams
like ours. I don’t think that can beunderestimated.”PICTURES
IF YOU FR AUDULENTLY BREACH THE FINANCIAL
REGULATIONSYOU WILLLOSE YOUR CHAMPIONSHIP
“
“
PICTURES:FORMULA1;MOTORSPORTIMAGESQ
Q
Q
Q
Q
Q
Q
Q
Q
Q
F
MASTERMIND
Yourchosenspecialisedsubject:
theworld’sgreatestsportEsteban Oconwill return to the Formula1 grid
in 2020, but withwhich team did he make his
practice debut in 2014?
Which current driverhas two podiumsto his name
but has yetto lead a single lap of an F1 race?
Which two current circuits on the calendar first
held a world championship race in the 1980s?
True or false:Red Bull has won at least one race
a year since its first victory in 2009?
Which driver finished 20th and last in the
standings in 2018 with a single point?
The Ford Cosworth DFV engine won its first race
in 1967, but when and where did it win its last?
At which race didTeo Fabi claimToleman’s single
pole position inFormula 1?
Which driver won the most world championship
races in the 1977 F1 season: Jody Scheckter,
Mario Andretti or Niki Lauda?
Whichteam has woneight of the 30 Dutch GPs
held so far?
Who was Romain Grosjean’steam-mate at Haas
beforeKevin Magnussen?Hungaroring (1986) and Suzuka 3 Lance Stroll 2 Lotus 16 Sergey Sirotkin 5 failed to win in 2015False, it 4 (1987)German GP 19857 Monaco 1983 (DFV) Detroit 1983 (DFY)Esteban Gutiérrez 10 Ferrari 9 ), the others 3Andretti (4 8In strivingto develop
these new cars,teams
will be subjectto a
stringent bud get capROSS BRAWN