Ferrari threatens to exit Formula One if further budget cuts Right away

Team principal Mattia Binotto says Ferrari could leave Formula One if the budget cap is further lowered. The teams are in a heated discussion on this issue.

“If the salary cap is lowered even further, we will be in a position where we need to consider other options to develop our racing DNA,” Binotto said. The Guardian.

In 2021, the budget ceiling of 175 million dollars (approximately 155 million euros) will enter into force. The top three teams, Ferrari, Mercedes and Red Bull Racing, have spent around 400 to 500 million in recent years, while the smaller teams have only had to give 100 to 200 million. By setting a budget limit, the differences between them must be reduced and sport more exciting.

Because the teams lost a lot of revenue due to the Corona crisis, the smaller stables recently pleaded for an even lower budget ceiling of, for example, 140 or even 90 million euros.

“It’s very difficult for us to stay below 140 million with our spending,” Binotto says. “Without further major sacrifices, especially in the human resources sector, we cannot continue to sink.”

Binotto: “F1 is less interesting for sponsors with lower spending”

Ferrari is the only team since the founding of Formula One that is constantly present in the top class. The Italian team even has a status-separate status and a veto in some Formula One decisions. In the past, Italians have threatened to turn their backs on sport in conflicts, but a compromise has always been found.

“Formula One has always been the spearhead of motorsport in terms of technology and performance,” emphasizes the team leader. “This is the only way we can tie up sponsors who want to join the most prestigious category. If we significantly reduce our spending, we run the risk of becoming less interesting.”

Binotto is particularly opposed to the rapid enforced of the decision on a budget ceiling. “The whole world is in a difficult and uncertain phase due to the pandemic. So it is not time to hurry up, we cannot properly see the consequences of decisions now.”

Ferrari boss Mattia Binotto. (Photo: Pro Shots)