Liberty Media outline latest F1 budget cap proposal

A budget cap has been a source of controversy in Formula One for a long time however that hasn't stopped Liberty Media with attempting to introduce one in the near future. According to sources in Germany and Italy, in a recent Strategy Group meeting, Liberty Media unveiled their latest plans for a potential cap.

Published stories in La Gazzetta dello Sport and Auto Motor und Sport in Italy and Germany respectively reveal that an initial cap has been proposed with the intention of bringing down the extortionate costs of competing in Formula One currently.

A $185 million cap has been suggested and would be introduced in 2021. Whilst the initial cap is a substantial curb of spending if RaceFans $400 million figure for Mercedes' 2018 budget is correct, certain parts would be exempt from this soft cap at first.

Further reductions in spending would be enforced in the following seasons, taking spending from that $185 million to $160 million and then down to $135 million for the 2023 season.

Although the top teams typically fight back against a budget cap, it is reported that Mercedes, Ferrari and Red Bull have all agreed to the proposal, likely due to the exemption of engine costs, driver and top personnel salaries and hospitality and marketing costs.

Whilst smaller teams will have to endure a few more years of high costs, the meeting could be the next important step in improving Formula One in the near future.