The Formula 1 teams decided at Monday’s meeting that there would be a cap on drivers’ salaries
Formula 1 is poised to introduce salary caps in 2023 as part of the wider cost saving measures being implemented in the coming seasons.
The exact number has not yet been finalised, however it is believed that teams will be restricted to salaries of $30m between both of its drivers.
Next year, a budget cap of $145m will come into effect, however salaries from the drivers and the top three highest-earning employees within a team are excluded from the restrictions.
The overall budget cap will be reduced to $135m by 2023, a figure far lower than the originally agreed sum before the economic repercussions of the Covid-19 pandemic.
However, teams may be able to offer their drivers a figure that would exceed the $30m mark, but the excessive sum would then be deducted from the operational budget cap for the season.
The driver salary limit scheme was discussed on Monday at a meeting of the F1 Commission where it received backing from all Team Principals, however it must be signed off by the World Motor Sport Council for it to be officially introduced.
As a result of the salary cap, some of F1’s biggest names, including six-time World Champion Lewis Hamilton, would take a major reduction of pay.
Hamilton is yet to sign with Mercedes for 2021 and beyond, despite his team-mate Valtteri Bottas agreeing to a new deal in August.
Also presented at the F1 Commission meeting was the new race calendar for 2021, which contains 23 races, including a new event at Saudi Arabia.
FORMULA 1 TEAMS VOTE FOR LIMIT ON DRIVERS’ SALARY FORMULA 1 TEAMS VOTE FOR LIMIT ON DRIVERS’ SALARY