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Further changes to F1 Regulations approved

May 28 2020

The World Motor Sport Council has approved further changes to the Sporting, Technical and Financial Regulations governing the FIA Formula One World Championship primarily due to the ongoing need to reduce costs and safeguard the sport in light of the COVID-19 pandemic.

 Further changes to F1 Regulations approved

The World Motor Sport Council has approved further changes to the Sporting, Technical and Financial Regulations governing the FIA Formula One World Championship primarily due to the ongoing need to reduce costs and safeguard the sport in light of the COVID-19 pandemic.

Following the initial agreement to postpone the 2021 Technical Regulations to 2022 (which was approved by the World Council on 30 March 2020), additional amendments to the Sporting, Technical and Financial Regulations for 2020, 2021 and 2022 have received unanimous support amongst the Formula 1 teams and were ratified today by the World Council.

The following is a summary of these changes:

Technical Regulations:

* Freezing of a large list of components between 2020 and 2021. The list includes the chassis, gearbox, a number of mechanical components and impact structures. A token system has been devised to permit a very limited number of modifications in accordance to the competitors’ specific needs.
* From 2020, limitations to Power Unit upgrades.
* For 2021, changes to the plan-view trim and simplification of the floor ahead of the rear tyres in order to moderate the increase of downforce between 2020 and 2021.
* For 2021, minimum mass increase to 749kg.

Sporting Regulations:

* For 2020, provisions for “closed” and “open” events and the relevant regulatory structure for each (e.g. personnel at the paddock), depending on whether such events permit spectators.
* For 2020, various updates relating to tyre regulations, with provisions to allow for tyre testing during Free Practice 2 should it be necessary to approve a new tyre specification by Pirelli and the extended use of P140 tyres in the case of a wet Free Practice 1 session.
* For 2020, a reduction in aerodynamic testing (ATR) and the introduction of Power Unit test bench restrictions for cost reasons.
* For 2021, a further reduction in aerodynamic testing, and the introduction of a bias between championship position and ATR limitations. The ATR bias will be linear between P1 and P10.
* For 2022, a number of key specific aspects of the regulations have been set out, including curfews, restricted number components (RNCs), scrutineering, and parc fermé prescriptions. These regulations work as a package together with the 2022 Technical Regulations that were approved by the World Council on 30 March 2020 and will be part of an ongoing review and refinement process throughout 2020 and 2021.

2021 Financial Regulations:

* Reduction of the Cost Cap level to $145M for 2021, $140M for 2022 and $135M for 2023-2025, based on a 21-Competition season.
* The following amendments/additions will be made to the exclusions currently provided for in the Financial Regulations:
i. Increase of Year-End Bonus exclusion cap for exceptional sporting results from $10M to $12M and Social Charges for Year-End Bonus.
ii. Threshold for calculation of exclusion for Social Charges on Salary paid to staff lowered from 15% to 13.8%.
iii. Costs incurred for staff entertainment (capped at $1M).
iv. Wellbeing of employees: exclusion of costs incurred for medical programs (e.g. vaccination, eye tests, hearing tests) made available to all relevant employees.
v. Sustainability costs incurred for environmental initiatives.
vi. Maternity/paternity/shared parental/adoption leave, exclusion for Salary costs.
vii. Sick leave and long term sick leave: exclusion for Salary costs.
viii. Projects undertaken to assist the FIA.

* Concurrently with these regulation changes, the Notional Values for Transferable Components (TRCs) have been defined by the FIA for 2021, which is of increased importance considering the reduced Cost Cap level. It has been reaffirmed that the concept of the Notional Values (subject to their correct and fair setting), achieves the following:
i. Enables smaller teams to avoid the necessity to establish and maintain a capability to design, develop and manufacture the parts that have been designated as TRCs (Transferable Components)
ii. Prevents project “flipping” (a small team supplying a big one to circumvent the Cost Cap restrictions).
iii. Enables small teams to make genuine savings.


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Further changes to F1 Regulations approved
Discussion started by Williams F1 , 28/05/2020 09:55
Williams F1
28/05/2020 09:55
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28/05/2020 20:54
Well it’s better and deeper than I hoped for. I think this should ensure all the teams stay on the grid for the next couple of years! Shame it’s too late for teams like caterham or hrt? (Amazing how quick you forget!)

29/05/2020 08:20
Good morning,

This is terrible news, it is probably the end of F1. :-(

Renault have just announced 15,000 job loses so how can they justify an F1 program, marketing, hardly.

What about technology relevant to both F1 and road cars, well if the cost cap is really at the correct level to allow smaller teams to compete then surely there must be limited scope for speculative projects. The point of the budget cap is to restrict the cost of racing to the point that you can't throw 50 people at developing xyz as it might be a good idea.

So do Renault go before having to sign up for another 5 years?

What about Merc, they face a real prospect of going backwards, after winning for so long where else can they go? Any estimates of how many jobs are going to go, estimates seem to be around 1,000-1,500 across all the teams, so this could easily be 300 at Mercedes.

Job losses on this scale could easily remove any advantages offered by having such a large number of people working on F1, of course they will also have the same problem as Renault with road relevant development.

They also have the problem of explaining to the Merc board a cost cap of $145m but needing to pay Lewis $50m and how this will look publicly.

At the moment Merc and Ferrari can supply standard parts with very few consequences because they are throwing so many resources into other areas there is little risk that Haas or Racing point will build a faster car.

With the customers of standard parts finishing lower down the championship and being allowed more development resources than the suppliers of these parts will Merc and Ferrari simply say no more sales?

Suddenly Haas and Racing Point need to employ a few hundred people more, nope can't afford that so we will close.

.. and once you start to say that F1 can't spend what it wants it simply becomes a racing series, not the pinnacle of motoring technology, so why not get involved in Formula E. Of course since they banned active suspension etc it is not that anyway but F1 likes to pretend. :-)



29/05/2020 08:28
Ian, best you look at William’s press release! ☹️

29/05/2020 09:35
Have to agree with you that things look bleak at this point, Ian

Firstly, I think they will struggle to get all of the teams to the grid in Austria and whatever other races they plan this year.

And if they can't get all of the teams and a sufficient number of races/TV income to cover their costs, you have to question if any racing will happen this year.

They seem determined to put on a show (and I hope they do), but I still have my doubts. They may be better off to cut their losses and call it quits for this season. I even wonder whether they'll have any racing until late 2021 with the long lead times required to host a race, but we'll need to see how things pan out.

Then in the medium/long term you have to question the survival of the teams and Liberty itself. The independents are struggling and the manufacturers will question their commitments and budgets, especially if they are forced back to the mid-field teams by budget caps and they're not selling any cars.

I'm sure there are a few billionaires out there with some spare cash, interest in F1 and on the hunt for bargain investments in a post-COVID world. However, it may take a complete implosion of the teams and sport followed by a Phoenix rising out of the ashes before we see F1 racing again.

I wonder if Bernie is out there salivating at the prospect of some bitter-sweet revenge to keep him busy in his nineties?!!!

29/05/2020 13:26
Good afternoon,

What is really bleak for Williams is that they received £35million for WAE and this hasn't stabilised them.



29/05/2020 23:22
Good afternoon,
What is really bleak for Williams is that they received £35million for WAE and this hasn't stabilised them.



Unfortunately Bye to Williams! Hello to Latifi F1 Racing! What a mess!

Ozzy Osbone
31/05/2020 19:22
The big problem is that in 5 years will all be driving electric cars and F1 has no relevance any more. It's done I think. Game over. All these firms like Merc, VW, Honda, Toyota are clinging on to this oil fired dream and it's going to move far faster than their board of directors can find their chairs.

Oil is dead. Accept and move on. The problem F1 has is that I believe Agag or whatever he is called has a right to run the only electric open wheel series under FIA rules for about 20 years. I can't be arsed to look it up but 5 years from now a V6 petrol engine is going to look pretty stupid as a means of transport.

31/05/2020 22:12
Yes you are bang on Ozzy. However, infrastructure won’t keep up so the ICE death will take a while!! 2 charging point in my little town of 6000! They are monopolised by a pair of Tesla’s!! I can’t get near to plug in! Luckily I can charge at home but many won’t have that luxury!

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