Formula One discusses driver salary cap but nothing agreed
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[October 31, 2020]
By Alan Baldwin
(Reuters) - A proposed cap on Formula
One driver salaries is under discussion but still some way away,
although teams are supportive of the idea, bosses said on Friday.
The idea has been bubbling away for some time and was put forward
last Monday in a virtual meeting of the Formula One commission.
It proposes a $30 million cap for teams to pay drivers, starting
from 2023. They can spend more but the excess will come out of what
will be a $135 million annual budget cap for all teams by 2023.
The budget cap, to be introduced next year at $145 million before
dropping to $140 million for 2022, does not include driver salaries.
Mercedes's six times world champion Lewis Hamilton is paid an
estimated 40 million pounds ($52.13 million) but about to negotiate
a new contract from 2021.
Red Bull team boss Christian Horner emphasised that nothing had been
voted on regarding driver salaries, and contracts agreed before any
change in the rules would need to be respected.
"There's no firm rules or regulations, it's not been voted in, it's not
become part of either sporting, financial or other regulations," he told
reporters at the Emilia Romagna Grand Prix at Italy's Imola circuit.
"Obviously, costs are sensitive for everybody at the moment and... it
got a reasonable response.
"We'll see where it goes, but it's far from being a set of regulations
because there's all kinds of legal ramifications that need to be looked
at -- actually is it implementable?"
Mercedes team boss Toto Wolff said it was an emotional issue.
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The Williams team
practice a pitstop poses ahead of the Grand Prix FIA/Handout via
"Formula One teams, in order to be sustainable long-term and
attractive sports franchises, need to show profitability like any
other company out there and I think we all need to achieve that,"
said the Austrian.
"On the other side, it's clear that drivers, the ones that are in
Formula One, are the best in the world and should earn high salaries
like all the other top stars in sport."
Hamilton said he had not been aware the subject was discussed this
week and the delay in signing a new deal was nothing to do with
"It's a surprise for us... I think it's important that the GPDA
(Grand Prix Drivers Association) work closely with Formula One and
get into discussions," said the Briton.
(Reporting by Alan Baldwin in London, editing by Ken Ferris)
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