Budget caps in 2014?

[gloomyDAY]

Bernie Ecclestone pushing for Formula 1 budget cap by 2014 season - F1 news - AUTOSPORT.com (http://www.autosport.com/news/report.php/id/103764)

I think it's a good idea. F1 cannot spend money in unlimited quantities any longer, but the budget cap seems too high.

The sport must remain sustainable!

[zako85]

With the top teams having so much influence over FIA regulations, it would be interesting to see how low the budget cap is actually taken. I would assume that the top teams would prefer the budget cap to be high enough so they can easily outspend midfield teams, but low enough to prevent a destructive spending arms race between the top 3-4 teams.

[steveaki13]

I would like to see this come in. But as mentioned above the top teams would want it so high that mid & small ranked teams would still have no chance of remaining in & competing inF1 for the long term.

[Koz]

How will anyone ever enforce such a budget?

[F1boat]

With the top teams having so much influence over FIA regulations, it would be interesting to see how low the budget cap is actually taken. I would assume that the top teams would prefer the budget cap to be high enough so they can easily outspend midfield teams, but low enough to prevent a destructive spending arms race between the top 3-4 teams.
I personally think that this is the best solution. F1 should not be communism. Top teams should be top teams, like in football for example.

[wedge]

Considering that McLaren recently avoided paying their tax bill and RBR breaking the gentleman's agreement over RRA has led me to wonder whether a budget cap is fully enforcable?

[Knock-on]

These things are impossible to monitor so are pretty worthless.

[Rollo]

How will anyone ever enforce such a budget?

Ferrari's proposed budget for 2014 season.

Profit & Loss:
Revenues:
Sponsorship - €1

Expenses:
Management Fees - €1

Net Profit - Zero

Balance Sheet:
Assets:
Cash - €1

Liabilities:
nil

Equity:
Ferrari S.p.A. - €1

Problem solved.

All expenses for Ferrari would pass through the Società per Azioni and under both Italian law and European law, the FIA would not be allowed to look at the books because it is an SpA and they (the FIA) are not the owners of the company. If I was any other team on the grid, I'd set up similar companies and/or holding arrangements in the various applicable countries and then tell the FIA precisely where to go and how to get there; I might even provide the bus fare.
Salary Caps can be made to work where you have franchise arrangements, but in the case of F1 teams, multi-million dollarpound motor companies would look at those regulations for every legal situation. This is not only unenforceable but any attempts to do so might meet with legal challenges in European courts.

[Garry Walker]

Good luck trying to enforce the budget cap in F1. Idiotic and unworkable idea.