{"id":1513844,"date":"2022-06-10T09:31:55","date_gmt":"2022-06-10T13:31:55","guid":{"rendered":"https:\/\/sports7.us\/?p=1513844"},"modified":"2022-06-10T09:31:56","modified_gmt":"2022-06-10T13:31:56","slug":"formula-1-making-mistake-with-latest-cost-cutting-idea","status":"publish","type":"post","link":"https:\/\/sports7.us\/news\/formula-1-making-mistake-with-latest-cost-cutting-idea\/","title":{"rendered":"Formula 1 Is Making a Mistake With Its Latest Cost-Cutting Idea"},"content":{"rendered":"\n

The time was right when Formula 1<\/a> introduced a budget cap in 2021. After all, the pandemic that shortened the 2020 calendar after teams had already spent tens of millions preparing to race threatened further chaos.<\/p>\n\n\n\n

In addition, spending by Mercedes<\/a>, Ferrari, and Red Bull in search of the perfect engines and aerodynamic packages spiraled out of control for years, and not because of the top line but rather because of the bottom line. What good is being a top team if you\u2019re barely breaking even?<\/p>\n\n\n\n

Talk about a new round of budget limitations has started. F1 bosses may come to regret it quickly.<\/p>\n\n\n\n

Formula 1 hasn\u2019t finalized its 2023 spending cap<\/strong><\/h2>\n\n\n\n
\"Charles
Charles Leclerc leads Carlos Sainz during the Formula 1 Grand Prix of Monaco at Circuit de Monaco on May 29, 2022. | Clive Rose\/Getty Images<\/figcaption><\/figure>\n\n\n\n

The spending limit imposed by Formula 1 for the 2021 season was $145 million per team, which at once seems too high and too low. About $6.6 million per race sounds low because of the immense cost of engines and the ongoing need for R&D. Upon further review, however, two crucial budget lines are exempt from the cap: nearly all components of the power systems and driver salaries.<\/p>\n\n\n\n

Complete swap-outs of engines and gearboxes reportedly run into the low eight figures, and contending teams easily go through at least four sets per season in each of their two cars.<\/p>\n\n\n\n

The same spending rules apply this season, though the cap number has dropped to $140 million. Multiple reports say Formula 1 will lop another $5 million off next season. However, inflation is a problem beyond just the United States. So, too, is the cost of shipping all that equipment across continents and oceans multiple times per season.<\/p>\n\n\n\n

It's likely that F1 will consider easing the cap number for the 2023 season. The bad news for teams is that Formula 1 executives will want to make cuts elsewhere.<\/p>\n\n\n\n

Drivers could feel the pinch in coming years<\/strong><\/h2>\n\n\n\n
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