New FIA rule could crush Ferrari budget cap roadblock

A safeguard clause added to the FIA’s sporting code could quell Ferrari’s efforts to prevent a lowering of Formula 1’s budget cap for 2021.

Formula 1’s economic downturn amid the global coronavirus pandemic has led the sport’s midfield teams to lobby for a reduction of next year’s cost cap threshold below the previously agreed $150 million level.

However, Ferrari has opposed any additional reduction, arguing that another cutback would lead to painful layoffs in Maranello.

But F1’s smaller teams – led by McLaren – have grown frustrated lately with the Scuderia’s inflexible stance, taken at a time of extreme crisis for the sport.

Those teams now appear have the FIA on their side following the World Motor Sport Council’s decision to tweak its International Sporting Code.

“In view of the unparalleled COVID-19 crisis, the FIA continues to make changes to its regulatory processes to mitigate the impact wherever possible and safeguard the sport for the future,” read a statement from the governing body on Friday.

“Therefore, in addition to previously announced changes to specific championship sporting and technical regulations, the World Motor Sport Council has now approved the introduction of a safeguard clause in the International Sporting Code.

“The safeguard clause will overcome the current requirement to obtain the unanimous agreement of all competitors to amend regulations within an individual FIA championship, cup, etc., allowing the FIA, under certain exceptional circumstances, to modify regulations with a shorter notice period and with the agreement of the majority of the competitors properly entered for the FIA championship, cup, etc. concerned.”

In short, unanimity among the teams will no longer be required to change the regulations – or to lower the budget cap, in the event of “exceptional circumstances”, such as the COVID-19 pandemic.

“In exceptional circumstances, and if the FIA considers that the change in question is essential for the safeguarding of the Championship, cup, trophy, challenge or series concerned, the agreement of the majority of the Competitors properly entered shall suffice,” reads the FIA specific article.

The move by the FIA, beyond its ability to lift Ferrari’s roadblock, also reflects the position of FIA president Jean Todt, who is largely in favour of lowering F1’s costs significantly.

“In each disaster, in each crisis, you have a lot of bad but you have some good,” Todt said recently.

“So, among the good is that we have the opportunity of making things better for the future.

“And mainly in F1, we reached some heights, which for me are not reasonable and which we need to address.”