31/10/2019
NEWS STORY
While there are an increasing number of exceptions to the $175m that teams are allowed to spend from 2021, should any attempt to circumvent the rules they are warned that that they will be harshly treated.
"Financial regulations are the big change, a dramatic change in Formula 1," F1 MD, Ross Brawn told reporters at today's presentation.
"We've tried for these in the past, and we've not been successful," he admitted. "I think the crucial thing about the financial regulations now is that they're part of the FIA regulations. So the sanctions from breaching financial regulations will be sporting penalties of some sort, depending on the severity of the breach.
"Whereas before, if any of you remember, we had the Resource Restriction, which was a gentleman's agreement between teams, well, there's not many gentlemen in the paddock I'm afraid, and that was a failure," he admitted. "But this has teeth. If you fraudulently breach the financial regulations, you will be losing your championship. So it has serious consequences if teams breach these regulations.
"They've been pretty well thought out, but they will need development, like any new regulation," he said of the challenge that the implementation of the budget cap will face. "Even the current regulations, as you know, the current sporting and technical regulations are constantly in discussion, and this won't be any different.
"So I fully expect that we're going to have challenges in the future to implement this, but it's absolutely essential for the good of Formula 1 that we have a control on the finances, and how much we spend in Formula 1."
The 2021 financial regulations in full here (Pdf)
Check out our Thursday gallery from Austin, here.
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