With the FIA’s International Sporting Code stipulating that major regulation changes must be finalised at least 18 months ahead of introduction, the World Motor Sport Council meeting scheduled for 14 June provides the final opportunity for Formula 1’s 2021-onwards regulations to be ratified by the WMSC before the 30 June deadline.

RaceFans understands that the sport’s governing body circulated draft copies of the proposed technical and sporting regulations to all teams on 4 June, with follow-up meetings called in Montreal on Thursday. Further discussions meetings are expected to be held on Sunday morning.

Simultaneously, details of the proposed budget cap were distributed to teams, with a fixed cap of $175m per annum to be imposed on all competitors. However certain exclusions are expected to apply: The salaries of the team’s three highest-paid executives, driver remuneration, the first $15m of power unit costs, marketing/hospitality costs, and all race-weekend travel and accommodation costs.

Crucially, there will be no three-year glide path, as had been previously proposed. It is thought that the exclusion of race travel costs was at the behest of F1 commercial rights holder Liberty Media to enable the championship calendar to be expanded without increasing cost cap levels.

According to sources, a revised revenue structure will also be introduced from 2021, divided into four ‘columns’: Columns 1 and 2 will be similar to the current structure, with the first column comprising 50 per cent of the common prize ‘pot’, divided equally among all participants. There will be no initial exclusion periods for new teams, as is currently the case.

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Column 2 will be disbursed amongst the top ten championship finishers on a performance-linked sliding scale, although the percentages will be weighted in favour of performance. Whilst the top championship finisher in a given season will still earn 18 per cent of the ‘pot’, the bottom placed team will receive two per cent rather than the four currently earned – with all intermediate placings tightened up.

Column 3 replaces the current CCB structure, whereby championship constructors’ bonuses are paid to Ferrari, Mercedes, Red Bull, McLaren and Williams, based on their respective championship histories.

In its place a ‘top three’ bonus will apply, where income is shared between teams based on how frequently they have finished in the top three championship classifications over a rolling ten-year period. The pot will be shared will be based on how many points each team has earned during that time in a system awarding three points for a championship win, two for second and one for third.

Finally, Ferrari will retain its Long Standing Team (LST) bonus, but this is expected to be halved from its present level of around $70 million, and may not be used for performance purposes. Thus, the team may cover cost cap exclusions with the LST bonus or write the proceeds to profit, but not allocate the bonus towards the $175m annual cost cap.

As RaceFans revealed previously, Ferrari will also retain its power of veto over changes to F1 regulations. However this is expected to be redefined to ensure that it can only be triggered under specific circumstances.

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2021 F1 season