Ferrari will be considering its future in Formula 1 if there are strict caps imposed on the team’s budget. The COVID-19 virus has caused a major hit on the finances of the sport and the team principal has cautioned against making hurried decisions, believing that the cuts which have been imposed on the budget of teams have primarily risked the devaluation of F1 as the top motorsport.
In the previous year the teams had agreed to cap the budget to $175 million for 2021, but after nine races have been called off this season and the coffers of F1 depleted, the teams had a meeting with the FIA as well as the owners of Formula One to have a discussion on spending limits.
They could have set a ceiling of about $145 million for the year 2021 and further moving to $130 million for 2022, but failed to reach a certain agreement. Mattia Binotto had expressed that Ferrari will be ready to walk out from F1 if the figures lowered any more than what was set.
Binotto further stated that the $145 million is a relatively new and a demanding request in comparison with what had been set out in the previous year. This is unattainable without having major sacrifices, particularly concerning the company’s human resources. The company will want to be pushed into a position that will make them explore other options to deploy its racing DNA if the budget gets lower than the one set currently.
Ferrari is the only team that is competing in Formula One since 1950, its first championship. The company has been threatening to walk out of the sport and now the Modena-based team has been unwilling to agree or leave more ground. The reduced budget cap has been decided too fast and inappropriately.
Binotto elaborated that F1 has teams with various characteristics and they have been operating in different countries as well as under different legislation and their own work ethics. This makes it complicated for the teams to make structural changes by directly cutting costs.