There has already been talk of an interview at the end of this week in which F1, FIA and the teams should have approved a provisional plan that would entail a reduction in the available budget lowering it to $ 150 million, but Formula E chief Alejandro Agag believes that the right thing is to apply a more drastic maneuver.
In fact, he declares that his business model should also be considered in view of the Concorde Agreement which will be signed in 2021.
Supporting his statements, Agag reports in an interview: “I think generally for motorsport this could be an opportunity. And, specifically for Formula 1, this could be a massive opportunity to restructure the whole model".
“Maybe it’s an opportunity for all the teams to share revenue on the same amounts. I’m also hearing of budget caps of $125 million, something like that, why not a cost cap of $75 million and make it really profitable for everybody?"
“It might be a good thing that the Concorde Agreement has not been signed yet, because it had all the original things that are kind of a burden for F1, with some teams making so much and some teams so little. The imbalance is huge in the Concorde Agreement. Maybe this gives an opportunity to completely shake down the whole system.”
Given the disparity between the F1 championship teams, the FIA president, Jean Todt had already stated that he was aware of the budget reduction, since he believed that the initial budget of $300 million was too high.
“In each disaster, in each crisis, you have a lot of bad but you have some good.” he said.
“So, among the good is that we have the opportunity of making things better for the future. And mainly in Formula 1, we reached some heights, which for me are not reasonable and which we need to address.”
One thing Agag considers and reaffirms its obviousness is the clear difference in budgets between large and small teams. In fact, it seems to be in favor of the change that Jean Todt has announced.
“I don’t think it’s normal that teams that compete in the same race receive completely different amounts of money. Compared to the football Premier League for example, if you look at the amount of money the winner gets compared to the last one it’s nowhere near the difference in money that the top teams receive. So that’s the new deal and it’s a big opportunity".
“And if people don’t realise that the world is going to be different after Coronavirus then they make a big mistake. The opportunity is there and people need to take it. We aren’t part of that, we will do our little new deal following.”
Agag also declares that he is not closely linked to the dynamics of F1 and its choices, but believes in changing some of them.
“I’m not in F1 or running it, and it is run by very capable people, and I’m sure they are thinking about all these things. But I would use this as a major correction of the business principles of F1. So it could be a very interesting opportunity.” he concluded.