While Formula 1 has enforced means to see its budget in order, a budget cap on drivers salary is set to come into place sooner than expected.
The move would ensure that teams end up spending less than they currently are despite the introduction of a budget cap.
La Gazzetta dello Sport has reported that F1 administration is keen to cut costs further and add the driver’s salaries as part of the cap. Currently, teams have to work within a budget cap, but driver salaries and that of the top 3 earning members of the team is exempt.
F1 boss Stefano Domenicali wants to introduce a drivers cap as well.
If this indeed does come into effect, you would expect Mercedes’ Lewis Hamilton and Red Bull’s Max Verstappen — the highest earning drivers on the grid — to be worst hit.
The report goes on to state that Domenicali wants to implement this regulation as soon as possible given the fact that the sport is set to incur a further revenue drop in 2021 due to the ongoing pandemic.
Most Grand Prix events will be held with fans. This in turn will lead to circuits failing to pay the designated hosting fee to F1.
The exact details of the driver salary cap are yet to be discussed, but if it does come into effect, it will be interesting to see what impact this has on team lineups.