'Manufacturers agree on budget cap engines in Formula 1'

Formula 1 appears to be gearing up for a budget cap for engine suppliers, reports Auto, Motor und Sport. That means good news for potential entrants to Formula 1.

Starting this season, Formula 1 teams will have to take into account a general budget cap. It ensures that the teams are not allowed to spend more than 145 million dollars in one year, excluding drivers' salaries, some top managers and marketing. When we look at the engines however, teams are allowed to invest unlimited amounts of money in those.

The FIA wants to change this as soon as possible. According to the medium, before 2026, when the new engine regulations come into force, a budget ceiling of maximum 100 million dollars should apply. In 2026 this amount will be 130 million dollars, after which the organisation will slowly reduce it to the previous amount.

Budget cap is good news for Formula 1

The arrival of a budget cap may convince interested engine suppliers to join Formula 1. For the time being it costs the companies a lot of money to supply a power source, but in the future it could be a revenue model for the sport. The final decision will reportedly take place at the end of the year.