“That counts as much for the big teams as it does for the small teams.
“There’s going to be a much more equitable prize fund in the new agreement. The midfield teams are going to be much better off in terms of their proportion of prize money. So it’s being balanced in every direction.
“We’re reducing the amount of money that can be spent in Formula 1 and improving the distribution of the prize fund more evenly amongst the teams. A good midfield team should be able to score podiums, maybe a win, and it should make a small profit.
“And if we can achieve that then we’ve got a very sustainable future.”
Originally, the F1 2021 budget cap was set to stand at $175m total spending on elements directly relating to the performance of the cars.
The budget cap will not have any control over team travel costs to and from races, cost of purchasing a customer engine supply deal, marketing costs, driver salaries and the salaries of the top three earners within team staff, with each area not counting toward the total.
With a budget cap implemented, the hope is that smaller teams on the grid will be able to reach a higher level of competitiveness versus the leading teams like Mercedes and Ferrari.