Changes to the Payout

[strad]

Formula 1 boss Chase Carey has said that new teams wanting to join the Formula 1 grid “should be part of the sport, and not a second-class citizen” with the change of financial regulations in 2021.

Currently the prize money distribution for F1 teams include equal pay to all who finish in the top 10 in the constructors championship for two of the past three seasons.

Haas was the most recent entry to the sport back in 2016 and finished eighth on 29 points but had to wait until the 2018 season to receive the Column-1 payment.

But, along with the budget cap of $175m being introduced in 2021, the payment system is set for a change which will see the equal payment to top 10 teams remain, while new teams will no longer have to wait three years...….
"If you come in, you should be part of the part of the sport, and not a second-class citizen," Carey said as quoted by Autosport.
"To come in as a second-class citizen, I think that's a deterrent.

"Once they commit to come in, [it is to] buy into a good business not just a great sport.
"If I'm coming in, if I wasn't committing as a first-class citizen, as a part of the club, then it's a deterrent."

Carey wants to make owning an F1 team have “franchise value” to make it a business rather than just a passion.
"Most of the people I've had preliminary conversations with want to see rules in place that provide the framework for a healthier business model," he added.
"A fair level, or what they consider a fair level, of prize money distribution, and some disciplines and the cost that again make it more about how well you spend your money, not how much you spend.

"We want owning a team, like in other sports, to have franchise value.
"How do we make owning a team something that is a good business proposition and not just a pursuit of passion?"

[izzy]

"Second-class citizen" is just emoting isn't it. The original idea was not to have half-baked teams coming in with dreams and no proper resources, like HRT and the others.

Anyway 10 teams is plenty. Who really needs more than 20 cars cluttering up the track? Just do the redistribution Chase, properly, and leave it at that. edit and we don't need it made cheaper either, or a franchise business! God this is such a bad attitude

[strad]

While I agree about the number of cars crowding the track and just doing the restructuring of the pay out, it has been franchises for a long time. Which why we see so much buying and selling of teams.

[izzy]

While I agree about the number of cars crowding the track and just doing the restructuring of the pay out, it has been franchises for a long time. Which why we see so much buying and selling of teams.

well why Chase is talking about it, is Liberty want to make it more of a franchise business. afaik (which might not be all that far ) the franchise model is where the franchisor has all the power and gives or withholds rights to his products to the franchisees.

of course yes the teams have a value at the moment, i see what you mean, but they don't have to buy a licence from a closed system that Liberty owns, they can apply to the FIA, sell, whatever

and obviously Liberty's plan is to make F1 cheaper, make it more spec and dumb it down, so they can give less to the teams and keep more for themselves. So there's a great big CONTROL thing about it, that makes me nervous. I much prefer the teams to have lots of power, as they actually understand it better, as a sport. Petrolheads like DrZ, Dietrich and Lawrence, and even the Board members at historic racing corporates like Honda, Renault and the others

[strad]

Whatever you say boss. I'm sure some of you have better understanding then me. However the way I have heard it is that Liberty wants to spread the money around in a more fair way so that all that contribute get a fair share back. Perhaps franchises was the wrong term.

[izzy]

Whatever you say boss. I'm sure some of you have better understanding then me. However the way I have heard it is that Liberty wants to spread the money around in a more fair way so that all that contribute get a fair share back. Perhaps franchises was the wrong term.

The redistribution is great and really needed, it's the business profit idea that's making me nervous, cos it means cheaper and more spec. And franchise is a power thing

[Andres125sx]

Then the only real change is new teams will receive the price for a top 10 finish from their very first year?

If that´s all, a minor tweak on a system wich needs massive changes