F1 CEO Carey sure safeguards are in place to govern budget cap

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Formula 1 CEO Chase Carey believes safeguards are in place to ensure teams abide by the new $175m budget cap from 2021.

The concept of putting a limit on the amount a team can spend isn't new, indeed an original $40m cap was proposed in 2010 before eventually being scrapped.

Ensuring particularly manufacturer teams can't use methods to move money around and not declare it as part of their budget was one of the main concerns.

But Carey is confident any potential loopholes have been secured.

"It took us a year to discuss this process through," he explained to Servus TV.

"Not only to get a suitable limit but also a process with which we can review it accordingly. Everyone can be sure that the cost structure is reliable.

"Our sport is complicated, but these tricks can be found in every business worldwide," the Liberty chief noted.

"The rules are clear and I am confident that this can also be checked properly and reliably."

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Though a final deadline on the 2021 regulations was pushed back until October, the budget cap is not thought to be part of the negotiations.

Although the F1 CEO does expect some tweaks to be made when the regulatory process in tested during next season.

"The plan is to carry out a test run by 2020. That won't affect the budget limit yet, but at least the process of how we check information," he revealed.

"Everyone should get a year to understand how it works. We want to see what the results are like.

"It will be a learning process, I am sure. We have no illusions. My guess is that we will refine the cost structure even further and we and the teams have to live with it.

"But we needed a starting point now and that is the beginning of a process that continues.

"We are again trying to create a sport that makes the competition better than it is today. It must be a healthier business for everyone involved."