Ferrari F1 Vows to Double Up Investment to Accommodate 2021 Changes

With the FIA bringing in regulations that will tighten the purse strings, Ferrari will be forced to act in 2020. Scuderia Ferrari CEO Louis Camilleri expects major backlash against the team’s spending policy this season. In 2021, F1 will enforce a cost cap that will limit team spending. This may prove to be a nuisance for the bigger teams.

Ferrari and its intricate finances

Ferrari earned a mammoth $210 million last year (approx.) and was the highest earner among all teams despite not winning either championship. Furthermore, the Maranello outfit is believed to have spent a staggering $410 million for the 2019 season.

Teams like McLaren, Williams and Ferrari receive a sizeable bonus each year as part of a ‘heritage deal’. Additionally, the Scuderia earn $75 million annually as part of a long-standing deal with F1. This ensures Ferrari earn the most money out of all teams every year.

The main reason Ferrari are boosting their budget for 2020, is to prepare for 2021. In 2021 F1 will enforce a cost cap amounting to $175 million. The cost cap covers everything relating to car performance but excludes driver salaries and marketing costs.

Louis Camilleri reveals the Scuderia’s ambitions

Speaking at a conference call with wall street analysts, Camilleri said: “We never give up,”

“Our ambition is to win and therefore, I don’t think we’ll put our foot off the pedal in terms of Formula 1 in 2020 or beyond.”

“Our ambition remains, as always, to seek to win. Thus, we will continue to invest in our infrastructure, resources and technological creativity as we continue to develop our 2020 car as the season unfolds.”

“In terms of Formula 1, as we mentioned, we’re sort of doubling up because we have to work on a totally brand new car [for 2021] as opposed to developing one further,” said Camilleri,  after revealing Ferrari’s quarterly earnings.

Camilleri also confirmed that Ferrari would be heavily investing in technology and infrastructure in preparation for next season. Louis Camilleri also added that Ferrari’s only goal in F1 was to win.

Ferrari is looking to end a title drought that stretches way back to 2007. The Maranello have outfit have come close to winning, but have been beaten by Red Bull and Mercedes on multiple occasions. Ferrari’s developmental strategies could prove to be crucial for next season.

Scuderia Ferrari will unveil its 2020 challenger on February 11, 2020.