The new owner of Formula 1 is planning a clampdown on overspending by racing teams as part of a big overhaul of the sport designed to end the financial chaos that has blighted it.

Liberty Media, controlled by the US billionaire John Malone, is understood to be developing plans to restrict the amount teams can spend, in the hope of levelling the playing field and making Formula 1 more financially sustainable for smaller teams.

The manoeuvres, which are in their early stages, are likely to be highly controversial. Previous attempts to impose budget caps have triggered big rebellions from the top teams, who in 2009 threatened to form a breakaway championship. It is hoped the changes will reinvigorate competition on the track.

A senior source familiar with Liberty’s plans said the sport’s economic imbalances need to be addressed to win new fans. “It makes no sense to have teams spending the better part of $400m (£320m)” he said. “That money is not doing anything good for fans. It is just wasted on competing on technology. That has not been driven by logic and it has created a two-class society in terms of what is spent on teams. You should have an opportunity for the underdog to win.”