F1 Teams Agree $30 Million Driver Salary Cap

29-10-2020 Formula 1 Formula1news.co.uk 183

On Monday, all F1 team bosses met virtually at the F1 Commission to vote on issues the sport is currently having to contend with.



The main takeaway from this meeting was the pending addition of a driver salary cap starting in 2023 which was agreed upon by all the teams.



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This move is a step to further reduce F1 teams’ spending, as the budget cap scheduled to come into effect next year previously had not limited driver salaries or the salaries of the top three highest paid team employees.



The World Motor Sport Council still needs to ratify the proposal which is set the salary cap for drivers at $30 million, split between the two drivers.



While teams will be able to dip into their team budget to make up the salary difference if necessary, they will not be monetarily rewarded for not exhausting this $30 million driver salary cap.



Additionally, any contracts put in place prior to the agreement’s ratification would still be honoured, so it may be expected that this proposal could expedite some remaining salary contracts and negotiations which are still pending, such as Lewis Hamilton’s much-discussed new mega-deal with Mercedes.



The Monday meeting was one of the last gatherings of the F1 commission, which is scheduled to be dissolved next year.



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