The FIA ​​published the rules of budget restrictions

The FIA ​​published the rules of budget restrictions

March 8, 2020 0 By autotimesnews

The FIA ​​World Council approved the financial regulations for the 2021 season, formulating ways to comply with and control the budget limit of the teams to 175 million dollars for the season of 21 Grand Prix, effective from January 1, 2021.

The budget limit depends on the number of Grand Prix, with an increase or decrease in the number of stages, the limit will be proportionally changed. For teams using other currencies, the limit is predefined in pounds sterling (135.912 million), euros (153.792 million) and Swiss francs (173.303 million).

The restriction does not include expenses on the salaries of riders, marketing, legal expenses, as well as what the FIA ​​considers to be “activity not in Formula 1”.

Teams are free to decide how they spend money within the limit, but are required to inform the controlling authority – the Cost Cap Administration (CCA) of their costs – and provide any financial information upon request.

Teams have the right to file a complaint against opponents who, in their opinion, violate the restriction – in this case, the CCA will either reject it or conduct an investigation.

In the case of a minor violation (cost overrun of less than 5%), the team may enter into an “Agreement on Acceptable Violation” and fall under a lighter penalty. If the violation is more serious, the penalty may be deprivation of points, suspension from participation in the Grand Prix, limitation of tests, exclusion from the championship or lowering the spending limit next year.

Any new team that has announced their preparations for the championship is required to comply with these restrictions for a year before their debut.