F1 - The Idea of a Fifty Million Euro Cap

The economic meltdown is now world wide and,by 60 or 70 percent? There is no accepted method
unfortunately, we are all feeling it. Even the masterper se, but the idea is to modulate the cars. The
spenders in Formula One are reconsidering their manicteams and FIA would voluntarily agree that certain
spending and are now throwing around the idea of aparts of the cars would be off limits for development
spending cap of 50 million Euros.purposes. For instance, there might be an agreement
If you are new to F1 or a mild fan, the idea ofthat the suspension systems would be homogenized
spending 50 million Euros to develop a car for 18 toacross all the cars. In contrast, the development of
19 races [depending on the year], may seemthe breaking system would be allowed. By modulating
obscene. After all, how much can you possible spendthe car into different classifications, the teams could
on a race car? Well, F1 is the undisputed top of theavoid spending vast amounts on those areas.
racing world when it comes to technologicalWill this proposal work? Yes, it will definitely cut down
development. Spending $20 million to gain a quarteron the costs, but it is a risky idea. While something
of a second per lap is nothing to most F1 teams.certainly needs to be done during the economic
In truth, putting most Formula One teams on a 50downturn, many view F1 as great because of the
million Euro budget is like making Jessica Simpson livetechnological innovations. If an excessive amount of
on carrots. It is hard to imagine it happening. A fewinnovation is removed from the sport, you basically
of the back marker teams in F1 spend less than this,end up with an international Indy Car series and
but this is why they end every race a lap or twonobody wants that.
down. The top teams are spending money as fast asThe current worldwide economic environment is
they can. Toyota is estimated to spend $300 million abrutal for individuals, business and racing series alike.
year. Ferrari and McLaren Mercedes are close to theTo the shock of many, Formula One has undertaken
same level. BMW is rumored to have spent overmassive cost cutting despite the fact the rivalry
$100 million just developing their engine for Formulabetween teams is so brutally harsh. While it is hard to
One.imagine them actually agreeing to a 50 million Euro
So, how are these teams going to cut their budgetsbudget, the times would certainly seem to call for it.