Effects of the Budget Cap

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Ruslan
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Effects of the Budget Cap

#1

Post by Ruslan »

Well, now that the first season under a budget cap is underway, let us see what the impact is:

To quote Toto Wolff: "Our car is a write-off in a cost cap environment; that is certainly not what we needed. And probably it's going to limit upgrades that we are able to do. We are very stretched on cost cap, and what we always feared is a total write-off of a car. This on is not going to be a total write-off, but almost, and that is not something we really wanted."

Article quoting Toto Wolff: https://www.reuters.com/lifestyle/sport ... 021-04-19/

Also of interest (article from December 2020): https://www.msn.com/en-us/sports/motors ... r-BB1bYIcd
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#2

Post by XcraigX »

Repairing crash damage should not be part of the cost cap. That's stupid. The backmarker teams usually employ the least talented drivers or freshest rookies. Therefore a large portion of their budget will go to crash damage and an even smaller portion to upgrades and development. This will only widen the gap, not reduce it.
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#3

Post by Ruslan »

XcraigX wrote: 2 years ago Repairing crash damage should not be part of the cost cap. That's stupid. The backmarker teams usually employ the least talented drivers or freshest rookies. Therefore a large portion of their budget will go to crash damage and an even smaller portion to upgrades and development. This will only widen the gap, not reduce it.
Or maybe it will force teams to consider using more expensive experienced drivers instead of some filthy rich dude's kid.
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#4

Post by DoubleFart »

No wonder Haas said they aren't going to develop this years car - they've obviously budgeted for Mazepin destroying a car every 4 races.
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#5

Post by Ruslan »

Is the Haas annual budget even near the cap?
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#6

Post by jimclark »

Ruslan wrote: 2 years agoIs the Haas annual budget even near the cap?
Which sorta' negates your previous post...."Or maybe it will force teams to consider using more expensive experienced drivers instead of some filthy rich dude's kid." :dunno:
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#7

Post by White six »

XcraigX wrote: 2 years ago Repairing crash damage should not be part of the cost cap. That's stupid. The backmarker teams usually employ the least talented drivers or freshest rookies. Therefore a large portion of their budget will go to crash damage and an even smaller portion to upgrades and development. This will only widen the gap, not reduce it.
It shouldn't apply to Haas , but should to mercedes ;)
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#8

Post by jimclark »

White six wrote: 2 years agoIt shouldn't apply to Haas , but should to mercedes ;)
More orchestration of outcome. Continue turning F1 into a lowly sideshow. Wonderful. :(
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#9

Post by Ruslan »

jimclark wrote: 2 years ago
Ruslan wrote: 2 years agoIs the Haas annual budget even near the cap?
Which sorta' negates your previous post...."Or maybe it will force teams to consider using more expensive experienced drivers instead of some filthy rich dude's kid." :dunno:
For Haas only (and any other team not at the budget cap level). I am guessing that 7 of the 10 teams are at the budget cap level, but that is only a guess. I am not sure Haas, Williams or Alfa Romeo are.
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#10

Post by jimclark »

Yup, sounds like a good guess. I don't have a clue at all.

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#11

Post by Everso Biggyballies »

I have found this figure in the diagram as to what each team spent, but it is 2019 season info. It is from an article dated May last year.

This is the article it comes from explaining F1 budgets and what the cap means, or meant at the time of writing.
https://the-race.com/formula-1/what-f1s ... -spending/

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#12

Post by DoubleFart »

jimclark wrote: 2 years ago Yup, sounds like a good guess. I don't have a clue at all.

'Doesn't really matter to me anymore as I watch the top of the auto racing heap crumble.....

You're doing a wonderful job of criticising, but typically have zero ideas as to how to fix it.

"Oh for the old days" they cry through rose tinted glasses. "We had innovation and creation back then"

Times have changed. If we have innovation and creation, with a bottomless budget, Haas, Sauber and Williams would be gone within 4 years, unable to keep up with the bottomless budget of the big teams.

Then comes a market crash, or a scandal, and the manufacturers go, leaving no manufacturers, and no private teams, and no competition.

Football is still trying to eat itself in the chase of big bucks, with the aim of selling the TV rights. F1 has been trying that for years, and disengaged the audience with a paywall.

There NEEDS to be a budget cap.
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#13

Post by jimclark »

DoubleFart wrote: 2 years agoYou're doing a wonderful job of criticising, but typically have zero ideas as to how to fix it.
I never need to fix what's not broken.

Yes, I criticize the ultimate form of auto racing being dismantled by those that don't appreciate what it is supposed to be because they wish to be entertained by a "better" "show". (as always, I suggest IndyCar is already there to fulfill that need)

No more, no less.
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#14

Post by DoubleFart »

So as expected, you just want to complain. Great input. No need to do it again.
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#15

Post by Ruslan »

Everso Biggyballies wrote: 2 years ago I have found this figure in the diagram as to what each team spent, but it is 2019 season info. It is from an article dated May last year.

This is the article it comes from explaining F1 budgets and what the cap means, or meant at the time of writing.
https://the-race.com/formula-1/what-f1s ... -spending/

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Well, the current budget cap in $145 million not including drivers, team principals, marketing and engines....so from these figures, it would appear that everyone is maxed out on the budget cap. I don't really believe that.

I still suspect Haas, Williams and Alfa Romeo are below the budget cap, and not sure about Alpha Tauri. Abiteboul of Renault was saying last year that they were indeed spending below the old $175 million budget cap.
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