Liberty Media, the owner of the speed race proposes a series of changes to make the sport more competitive and attractive. F1 has a long history and our mission is to preserve and develop speed sports, by unlocking its potential.
The criteria of F1 must be to satisfy the profitability of the racing teams. Liberty’s drafts are aimed at these two purposes.
The competition is gradually disappearing in F1, when Mercedes repeatedly dominated. Apart from them and the other two big guys – Ferrari and Red Bull – few people care about the other teams.
He outlined five major plans, the first being the financial aspect. The new concept in F1 is that spending is more important than spending. F1 will apply the spending threshold for racing teams, quite similar to the law of financial fairness.
But some expenses such as engine, travel, marketing or driver salaries do not need to be calculated. The figure of 175 million USD is also higher than the public opinion. This helps Liberty not be opposed by the big racing teams.
The majority of F1 racing teams’ expenses are in salaries and allowances for employees. The three big men invested heavily in engineering teams, designed to create the strongest cars. If the draft is approved, they will have to downsize. This is an opportunity for smaller teams to catch up.
Currently, the revenue from F1 is divided among the teams according to their hierarchy in the season. From 2021, Liberty wants a fairer revenue allocation system, to encourage engine suppliers to join F1.
Liberty wants to split the bonuses for engine suppliers. Teams Mercedes, Ferrari or Renault can receive twice the bonus. Improvements in the energy department are supported by all four engine suppliers.
Liberty also aims to new roads that are more impressive to the audience. In order to put new philosophies into practice soon, Liberty also aims to minimize the management mechanism for F1.