Racing Point CEO Otmar Szafnauer believes the 2021 cost cap serves a greater purpose with “closing up the field” than merely being a financial aid for the smaller teams. As the budget cap debate rages on, Szafnauer feels the teams will reach a compromise sooner rather than later. Additionally, Szafnauer opened up on Racing Point’s finances and how the cap benefits them.

The ongoing F1 budget cap debate

One of the reasons for the importance of the upcoming budget cap is due to the current financial crisis in F1. Due to Coronavirus, Formula 1 has canceled or postponed nearly half the 2020 calendar. With teams not competing in races, sponsors withhold payments, causing a financial crunch.

As a result, teams face a big problem in developing a car for next year. To mitigate the effect of the financial crunch and bridge the gap to the bigger teams, the midfield is pushing for a reduced cost cap. According to reports, all teams have agreed to a lowered cap of $150M but the smaller teams want a revised cap close to $100 or $125M.

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However, the bigger teams – like Mercedes and Ferrari are against an even bigger reduction. Ferrari argues that engine supplier teams must be treated differently to customer teams. Mattia Binotto proposed differing caps for teams based on its role in F1. A suggestion which many teams rejected.

Why Racing Point benefits from a cap

“The other thing that we have to remember is that [with] the cost cap you don’t have to spend the money,”

“You don’t have to, even if the cost cap is $170m,” said Szafnauer, speaking to Motorsport.com.

“We at Force India, for example, in dollar terms, with all the exclusions, we used to spend around just over $100m, say $110m.

“But there are lots of exclusions. So if you take out all the exclusions, my guess is we’re spending around $70m. And that $70m got us to fourth [in the constructors” championship] – and a few times [2016 and 2017″

While Racing Point may have a budget closer to the cost cap, the top 3 teams spend twice or thrice as much as the midfield on car development. Halving a crucial financial aspect is no easy task for a team like Ferrari.

“So the cost cap is also a leveler in competitiveness, really, and the performance you can get out of it.

“We’ve got to be careful that we’re not just saying ‘cost cap for financial reasons”

“the cost cap also helps with closing up the field.”

“We’re well on our way in everybody negotiating and discussing”

“and coming up with a cost cap that’s either equally liked or equally disliked.”