If you're sponsoring a back marker team you're not going to be giving them as much money for your logo as you would Ferrari or Mercedes. So the teams get less per logo so they get less overall income. Less income means they can't do as much as the big teams so they can't compete. If you don't compete and don't get media coverage, you don't get sponsors queuing at your door to give you money. It's a vicious circle - a negative feedback loop if you like.mertol wrote: So they need better sponsors not cheaper regulations. Notice how the budget limitation mostly affects big teams? It won't do anything for the small, dropping out teams.
You need to reduce the big teams' budgets in order for the smaller teams, who can't get the big budgets because they get less sponsorship, to have a chance.
It really isn't difficult to understand.