Ferrari CEO welcomes $145m F1 budget cap amid 'big hit' from coronavirus

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Ferrari CEO Louis Camilleri has welcomed Formula 1's decision to cut the new budget cap from $175m to $145m in 2021.

The Italian team has been in staunch opposition to dramatically reducing the new spending cap too sharply because of potential staff cuts, this as McLaren pushed for a figure of just $100m.

And it seems Ferrari got their way after F1 motorsport boss Ross Brawn confirmed this week the $145m number has been agreed, with further smaller reductions expected in the years after that.

"It remains our hope such a ceiling will render Formula 1 more economically sustainable for all participants while ensuring that it remains the premier racing championship globally and the source of significant advances in automotive innovation and technology,” Camilleri told investors this week.

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His comments came as Ferrari admitted their financial outlook for this year is uncertain because of the coronavirus and the impact it has having on their core activities.

Operations were halted at their Maranello and Modena factories, though resumed this week, while F1 is yet to go racing at all.

“Formula 1 is undoubtedly the activity that will adversely affect our results in 2020 in the harshest manner and also the one that is by far the hardest to predict,” Camilleri explained.

“This clearly implies a drastic reduction in the revenues that are generated by the commercial rights holder, as well as sponsorship fees, our two primary sources of revenue.

“The hit to revenue essentially goes down to the bottom line, with some minor offsets. It’s a big hit."

On a positive note, however: “The good news is the significant losses incurred should be short-lived and contained to 2020," the CEO added.

"Our current thinking in terms of revenues, although it's somewhat unpredictable, in 2021 they should come back certainly in terms of the races, which is a big part of it, and obviously also in terms of sponsoring.

"We know that the Formula 1 Group has worked a lot in terms of trying to attract new sponsors.

"Obviously the situation has delayed certain things, but hopefully by 2021 that will have come back.

"At this stage, we don't really foresee a continued reduction in the commercial rights holder revenues in terms of Formula 1 for next year, all things being equal."