In 2018 I took a pass at an F1 salary cap...

[rileykirn]

In August of 2018, I decided to take a shot at creating the perameters of an F1 salary cap. Compared to this, https://www.racefans.net/2019/06/07/det ... -revealed/

I got remarkably close.

Here was my idea then:

1. Centralized financial management

Centralized Financial Management + Design/Manufacturing Constraints
-F1 centralizes all team operational finances.
-Annual cost budget cap set & paid into F1 in installments over the racing season, offset partially by annual payout to teams.
-All team costs & expenses are requested through F1 & paid directly by F1.
-Teams spend/allocate budget any way they choose.
-Exclusions: All factory hard costs. Facility, equipment, maintenance, etc. All non-direct racing costs(entertainment, promotion, track chalets, etc.). Driver cost.
-Shipping & team travel costs costs to be coordinated & paid directly by F1, not as a part of this budget.
-Central, F1 owned & operated cloud computing for CFD. All teams use this system. Work on system is private. F1 can only monitor time & data usage to optimize & improve scale at all times. This will eliminate the needless duplication & waste of resources of individual team systems while allowing for one system to be maintained or upgraded at the highest technological level available at all times. Unlimited use, limited only by the choice of allocation of personnel cost as a part of each team’s budget cap.
-Wind tunnel usage unlimited (as with CFD usage, limited only by the choice of allocation of personnel cost + wind tunnel operation cost as a part of each team’s budget cap).

Notes:
-Best planning & budgeting, identification & use of top engineering talent, efficient allocation of resources, etc., will have the greatest advantage. Human creativity & leadership will again move to the forefront.
-Combined with more flexibility & simplified rules, teams will create varying design solutions & choices.

[Jolle]

The big three/four have to be efficient for the first time. I foresee that some will outsource big parts of design and manufacturing to lower cost countries.

[Manoah2u]

still think it's the biggest bull ever.

it's like small chinese manufacturers are claiming they can't compete with the likes of Levi, Boss, Tommy Hilfiger, etc. and feel it's unfair competition and then
demands some governing body puts a investment cap on it and now neither of those companies can spend more than 100.000 USD on their products and it
must run through some accountant that oversees things. quality and stuff goes down immediately, people get fired.
now everybody can wear crappy chinese trash and nobody the good stuff everybody looks up to.
did it do any good? no, not at all.

the sport is being ruined more and more and more.

what a bunch of nonsense this is.

[rileykirn]

Let me clear: I'm not endorsing a cap as the best path for the sport. I merely created some ideas for a cap that ended up being similar to what was finally proposed. I think a portion from my ideas that makes a lot of sense to me is this:

"-Central, F1 owned & operated cloud computing for CFD. All teams use this system. Work on system is private. F1 can only monitor time & data usage to optimize & improve scale at all times. This will eliminate the needless duplication & waste of resources of individual team systems while allowing for one system to be maintained or upgraded at the highest technological level available at all times. Unlimited use, limited only by the choice of allocation of personnel cost as a part of each team’s budget cap."

The sport needs it's creativity back. The "box" is to refined. If smart F1 will use the cap as a tool to open up the possible of more creative & differing solutions in design by removing needless, duplicated expenses and/or controlling the most expensive parts of racing, WITHOUT limiting the creativity of each team. Cars need to vary in their appearance & their solutions!

[Jolle]

Let me clear: I'm not endorsing a cap as the best path for the sport. I merely created some ideas for a cap that ended up being similar to what was finally proposed. I think a portion from my ideas that makes a lot of sense to me is this:

"-Central, F1 owned & operated cloud computing for CFD. All teams use this system. Work on system is private. F1 can only monitor time & data usage to optimize & improve scale at all times. This will eliminate the needless duplication & waste of resources of individual team systems while allowing for one system to be maintained or upgraded at the highest technological level available at all times. Unlimited use, limited only by the choice of allocation of personnel cost as a part of each team’s budget cap."

The sport needs it's creativity back. The "box" is to refined. If smart F1 will use the cap as a tool to open up the possible of more creative & differing solutions in design by removing needless, duplicated expenses and/or controlling the most expensive parts of racing, WITHOUT limiting the creativity of each team. Cars need to vary in their appearance & their solutions!

I think the technology has evolved too much for creative engineering that you see and will make a difference. It’s not one designer that doubles as a welder anymore, there are hundreds of well educated and experienced engineers busy with complex systems and with materials that we understand fully and calculate how it will behave.

Teams were creative while discovering new areas like ground effect and turbo charging. There is still creative engineering, look at the split turbo.

Leaving gaps in the regulation is also a possibility, what gave us blown and double floors, but that will not improve racing because the big teams always will make those things work better for them just because the can calculate more options.

For instance. If the regs wouldn’t mandate a 1.6 V6 with a specific bore, a small company would have the possibility to try out maybe a few different layouts while Mercedes could have a 1.0 l3 all the way to a 1.6 flat 10 running on the bench.

There is a nice documentary on YouTube somewhere where they follow the build of the Cosworth V6 turbo in ‘86. Only around 10 engineers are determining how it will look and the choice for a V6 (they were late to the party) was because Honda, Renault and Porsche had one.

F1 has been out of the sheds for decades. Creative solutions and innovation will cost a lot of money and a lot more time to develop. Like extensive 3D printing. You can’t see it, but the top teams are investing a lot into it and it’s a good return on investment (for a company as Daimler). Or I can imagine a carbon parts, instead of different sheets rolled into a mold, that the weave is breaded into shape and then filled with resin to save weight and add specific strength.

With a budget cap, who is going to invest in developing new tools and the next generation of production?

[WillGuna]

Let me clear: I'm not endorsing a cap as the best path for the sport. I merely created some ideas for a cap that ended up being similar to what was finally proposed. I think a portion from my ideas that makes a lot of sense to me is this:

"-Central, F1 owned & operated cloud computing for CFD. All teams use this system. Work on system is private. F1 can only monitor time & data usage to optimize & improve scale at all times. This will eliminate the needless duplication & waste of resources of individual team systems while allowing for one system to be maintained or upgraded at the highest technological level available at all times. Unlimited use, limited only by the choice of allocation of personnel cost as a part of each team’s budget cap."

The sport needs it's creativity back. The "box" is to refined. If smart F1 will use the cap as a tool to open up the possible of more creative & differing solutions in design by removing needless, duplicated expenses and/or controlling the most expensive parts of racing, WITHOUT limiting the creativity of each team. Cars need to vary in their appearance & their solutions!

I think the technology has evolved too much for creative engineering that you see and will make a difference. It’s not one designer that doubles as a welder anymore, there are hundreds of well educated and experienced engineers busy with complex systems and with materials that we understand fully and calculate how it will behave.

Teams were creative while discovering new areas like ground effect and turbo charging. There is still creative engineering, look at the split turbo.

Leaving gaps in the regulation is also a possibility, what gave us blown and double floors, but that will not improve racing because the big teams always will make those things work better for them just because the can calculate more options.

For instance. If the regs wouldn’t mandate a 1.6 V6 with a specific bore, a small company would have the possibility to try out maybe a few different layouts while Mercedes could have a 1.0 l3 all the way to a 1.6 flat 10 running on the bench.

There is a nice documentary on YouTube somewhere where they follow the build of the Cosworth V6 turbo in ‘86. Only around 10 engineers are determining how it will look and the choice for a V6 (they were late to the party) was because Honda, Renault and Porsche had one.

F1 has been out of the sheds for decades. Creative solutions and innovation will cost a lot of money and a lot more time to develop. Like extensive 3D printing. You can’t see it, but the top teams are investing a lot into it and it’s a good return on investment (for a company as Daimler). Or I can imagine a carbon parts, instead of different sheets rolled into a mold, that the weave is breaded into shape and then filled with resin to save weight and add specific strength.

With a budget cap, who is going to invest in developing new tools and the next generation of production?

I think the budget cap creates more issues than solutions. But centralized CFD and wind-tunnel controlled by F1 can reduce the costs for smaller teams and make it easier for them to catch-up.

[rileykirn]

I still think that F1/Liberty is missing a trick by not considering this part of my thoughts on a salary cap & changes for 2021:

"Central, F1 owned & operated cloud computing for CFD. All teams use this system. Work on system is private. F1 can only monitor time & data usage to optimize & improve scale at all times. This will eliminate the needless duplication & waste of resources of individual team systems while allowing for one system to be maintained or upgraded at the highest technological level available at all times. Unlimited use, limited only by the choice of allocation of personnel cost as a part of each team’s budget cap."[/i][/i]

In August of 2018, I decided to take a shot at creating the perameters of an F1 salary cap. Compared to this, https://www.racefans.net/2019/06/07/det ... -revealed/

I got remarkably close.

Here was my idea then:

1. Centralized financial management

Centralized Financial Management + Design/Manufacturing Constraints
-F1 centralizes all team operational finances.
-Annual cost budget cap set & paid into F1 in installments over the racing season, offset partially by annual payout to teams.
-All team costs & expenses are requested through F1 & paid directly by F1.
-Teams spend/allocate budget any way they choose.
-Exclusions: All factory hard costs. Facility, equipment, maintenance, etc. All non-direct racing costs(entertainment, promotion, track chalets, etc.). Driver cost.
-Shipping & team travel costs costs to be coordinated & paid directly by F1, not as a part of this budget.
-Central, F1 owned & operated cloud computing for CFD. All teams use this system. Work on system is private. F1 can only monitor time & data usage to optimize & improve scale at all times. This will eliminate the needless duplication & waste of resources of individual team systems while allowing for one system to be maintained or upgraded at the highest technological level available at all times. Unlimited use, limited only by the choice of allocation of personnel cost as a part of each team’s budget cap.
-Wind tunnel usage unlimited (as with CFD usage, limited only by the choice of allocation of personnel cost + wind tunnel operation cost as a part of each team’s budget cap).

Notes:
-Best planning & budgeting, identification & use of top engineering talent, efficient allocation of resources, etc., will have the greatest advantage. Human creativity & leadership will again move to the forefront.
-Combined with more flexibility & simplified rules, teams will create varying design solutions & choices.

[Zynerji]

I have a white paper somewhere that I mapped this out using the Ethereum software to run a private blockchain.

You couldn't cheat, and its 100% trackable. I presented it as a cost cap invert however (maximized blockchain strengths), so many people disregarded it out of hand.

[rileykirn]

I'm going to keep beating this drum. As we look toward cost savings & reductions in the spending cap to help get F1 through what will be a very tough next 2 years, this idea I shared previously makes more & more sense. A central, cloud-based CFD computing would be a massive cost reduction to all teams!

I still think that F1/Liberty is missing a trick by not considering this part of my thoughts on a salary cap & changes for 2021:

"Central, F1 owned & operated cloud computing for CFD. All teams use this system. Work on system is private. F1 can only monitor time & data usage to optimize & improve scale at all times. This will eliminate the needless duplication & waste of resources of individual team systems while allowing for one system to be maintained or upgraded at the highest technological level available at all times. Unlimited use, limited only by the choice of allocation of personnel cost as a part of each team’s budget cap."[/i][/i]

In August of 2018, I decided to take a shot at creating the perameters of an F1 salary cap. Compared to this, https://www.racefans.net/2019/06/07/det ... -revealed/

I got remarkably close.

Here was my idea then:

1. Centralized financial management

Centralized Financial Management + Design/Manufacturing Constraints
-F1 centralizes all team operational finances.
-Annual cost budget cap set & paid into F1 in installments over the racing season, offset partially by annual payout to teams.
-All team costs & expenses are requested through F1 & paid directly by F1.
-Teams spend/allocate budget any way they choose.
-Exclusions: All factory hard costs. Facility, equipment, maintenance, etc. All non-direct racing costs(entertainment, promotion, track chalets, etc.). Driver cost.
-Shipping & team travel costs costs to be coordinated & paid directly by F1, not as a part of this budget.
-Central, F1 owned & operated cloud computing for CFD. All teams use this system. Work on system is private. F1 can only monitor time & data usage to optimize & improve scale at all times. This will eliminate the needless duplication & waste of resources of individual team systems while allowing for one system to be maintained or upgraded at the highest technological level available at all times. Unlimited use, limited only by the choice of allocation of personnel cost as a part of each team’s budget cap.
-Wind tunnel usage unlimited (as with CFD usage, limited only by the choice of allocation of personnel cost + wind tunnel operation cost as a part of each team’s budget cap).

Notes:
-Best planning & budgeting, identification & use of top engineering talent, efficient allocation of resources, etc., will have the greatest advantage. Human creativity & leadership will again move to the forefront.
-Combined with more flexibility & simplified rules, teams will create varying design solutions & choices.