KEY POINTS

  • Ferrari says it is making sacrifices in their negotiations over their future in Formula One
  • Louis Camilleri told the media outlets the team's credibility had to make they remained innovative while reducing costs 
  • Mattia Binnotto, especially, has played a leadership role within the FIAconsidering the other teams

 

Ferrari claims it is making financial sacrifices in their negotiations over their future in formula one after the year 2021. The move will assist the smaller teams in the sport to make sure it is economically viable as a venture.  

A budget cap of $175 million is going to be set from 2021, but it is not going to be applied for the engine development or the driver's salaries, while other exemptions like the top three earners will be allowed.

Formula 1 allegedly wants the teams to go back to a unified Concorde Agreement as opposed to going back to the individual deals with the teams that have altered the financial landscape of the team.

According to Ferrari, the negotiations have shaped something allowing for an equal share of the wealth for the ten teams. 

Team Chief Executive Louis Camilleri told the media outlets before Christmas that the team's credibility meant it had to make sure the ability to innovated remained while still being aware costs had to be reduced. 

He said they had been in favor of the move because it was preferable for the economic sustainability of the sport.

He stated they saw it as their responsibility to make sure Formula One remained viable and so the smaller teams would gain more revenue from the endeavors. 

He also added that when there are ten teams in the championship with different views, there is going to be continued discussion.

Ferrari is going to see their heritage bonus cut under the new deal. The previous arrangement meant they were the highest-paid team in the sport, though Camilleri claimed the history of the team in Formula 1 makes it significant to consider everyone's interests. 

He reiterated the central role of Ferrari in 2021 was the bigger picture and how its interests coincided with that. 

His experience in the past on other matters and businesses implies when there is competition, it can be tough to match the intention of everyone in the league. However, it ultimately becomes possible to see the overall benefit.

He finished by saying Mattia Binnotto, especially, has played a leadership role within the FIAconsidering the other teams. He is delighted with the progress in that sector. 

Ferrari has not always been a fan of the budget cap policy.

It is worth noting when the idea of capping the team spending was introduced though, Ferrari even threatened to leave Formula One.