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Every year, the F1 officials have brainstorming discussions on the rules and regulations for the upcoming seasons. The main objective of formula 1 is to promote quality racing and determine the winner of the season. To improve the quality of racing, based on the research done by officials and also the observations from the previous seasons, the officials keeps changing the technical aspects and the design of the car. For the year 2021, the F1 officials are having a number of changes of which some are against the teams objectives and goals. This being the case, the F1 2021 regulations have been postponed to four months from now. Let us see the reasons for the delay.
Technical Restrictions:
Officials are of the view that the regulations in 2021 must promote better racing among various teams. The core objective of racing is to bring out the outperforming teams and players. In that way the F1 officials are too skewed towards the aero parts of the car. The officials are working to reduce the dirty air formed by the downforce from the wings. Dirty air is that which is created around a driver who is behind another driver. This reduces the speed of the car behind and makes it difficult to overtake. But, downforce and dirty air is a trade off. If we reduce downforce to reduce dirty air it reduces the speed of the car in front. This becomes a disadvantage for the car in front and vice versa. F1 officials have told the design and aero teams to find the break-even point between the two.
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Budget Constraints:
Newly in 2021 regulations, the F1 officials are planning to have a limit on the budget. This is a highly negative move against the F1 teams. An F1 team has major expenses on R&D, manufacturing, drivers and race teams. A cap on the budget puts constraints on the expenses by each team. The officials are of the view that this change will lead to optimal resource utilisation. However teams feel their hands will be tied. Budget cap has a great impact on R&D. The cost of R&D must be reduced and also must be precise and on target. Teams cannot deviate from their objectives. If a team gets it wrong in the first go, further cost of R&D may cross the limits given. Thinking of all these possibilities, the teams are not ready to agree on these terms.
Revenue Distribution:
The F1 officials are making numerous number of changes in the revenue distribution scheme. Earlier, the revenue will be divided among the teams based on their performance as well as their past contribution to F1. From the 2021, the officials has decided to distribute revenue purely based on performance of each team. This is a benefit for the midfield teams whereas great contributors like Mercedes and Ferrari lose revenue.
The leading constructors are debating on these points along with the drivers in the discussion panel. But the midfield constructors are not involved much. They are silent on these. Although the reason behind their non participation is unknown, a possible reason might be the revenue distribution aspect being slightly beneficial to them.
Regulations have a great impact on the drivers, teams, sponsors and viewers. Let us wait for the 2021 regulations and see what are the big turnarounds and their impact on various stakeholders of Formula One.
