F1 teams are discussing about limiting driver salaries



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F1 teams are discussing about limiting driver salaries

Formula 1 teams are still debating whether drivers ’salaries should be included in the maximum budget they face for the first time this season, which will be getting smaller and smaller over the coming years. For the first time in Formula One history, a financial ordinance is in force this year that limits the team’s budgets to $ 145 million, but that doesn’t include driver salaries, the top three paid employees, marketing activities, and some other costs.

In the second month, teams debated whether to set a salary limit for drivers and highest-paid employees and after the F1 Commission meeting, it was announced that a working group had been set up to consider the possibility of such limits.

Hamilton, the highest-paid driver in Formula 1, is believed to have been paid about $ 55 million a year, which is more than a third of the budget limit for the entire season. Reportedly, the plan is to limit drivers ’salaries to $ 30 million which would currently mean that only Mercedes would have to cut the salaries of its drivers, most notably Hamilton whose current contract expires later this year.

“In the end, it’s all up to the teams,” said AlphaTauri’s F1 team boss Franz Tost.

30 million euros

It seems that the figure has been determined, and in fact, most rumors are related to the figure of 30 million euros.

"I don't think it should be more than 30 million for both drivers, but it's a matter of debate and it depends on how many financial resources each team has and which direction it will go." Aston Martin F1 team boss Otmar Szafnauer has confirmed that a figure of around $ 30 million for both drivers is being discussed.

"I think that's the number that Franz mentioned, about that amount," Szafnauer said. The figure will be known after some time, but for now, it is still unknown, because the decision process in Formula 1 is still ongoing.

“We’re in early discussions and I think we still have a lot to do before we get to some figure, to how to implement it and the like, I don’t want to talk about numbers,” added Haas F1 team boss Gunther Steiner.

Certainly, such a decision will affect the teams, and especially Hamilton, who will have a salary reduction. However, this would only limit Mercedes, while as already mentioned other teams would not have to reduce the salaries of their drivers