Formula 1 has revealed how ജit plans to lower costs for teams heading into the 2021 season, including the introduction of a $175m cost cap.

F1’s overhaul of the technical and sporting regulation for 2021 was unanimously approved by The World Motor Sport Council on Thursday ahead of this weekend’s ⭕United States Gra𝕴nd Prix, including a new financial structure.

Reducing running costs in a bit to create a more level playing field among teams was one of F1’s main priorities for its post-2020 vision, and the new financial changes are expected to “promote the competitꩵive bala💫nce and the sporting fairness of the championship”.

F1 says the changes will “ensure the 🉐long-term financial stability and sustainability of the F1 teams while preserving the unique technology and engineering challenge of F1”🎃.

The most nota🧸ble change is the introduction of a $175m cost cap for a 21-race calendar, with an additional £1m added or deducted for each race above or below 21🌊 races.

F1’s main guiding principles for the cost cap are as follow🍸s:

- Cost cap level set at a level that facilitate reduction in performance differentials 𒁏maintaining unique technology and engineering challenge of F1

- Ensure fr💃eedom to spend for the F1 teams within Cost Cap l𒐪imit

- Ensure transparency, fairness and eq𓃲uality of treatment amon🐎gst all competitors

- Ensure realistic implementation timescale to꧃ enable F1 ꦚteams to adjust operating structures and reporting processes

- Reference to internationally recog꧋nised accounting, acting standards and best prac𒊎tices

The cost cap will be implemented ov🌸er a three-year timeline set out by F1. On June 30 2020, teams will have the option to submit their financial date for 2019 on a voluntary basis, before a soft implementatio𓄧n in 2021.

Teams can also voluntarily submit their 2020 financial data by March 31 2021 without application of any financial or sporting penalties, before the first year of mandatory im♊plementation comes into force a year later.

F1 motorsport boss Ross Brawn described 🌠the changes as a “turning point” for the sport and confirmed any breach of the financial regulations will have “serious and severe” consequences.

Some of the most relevant exclusionsꦬ to the cost cap include driver costs, mark✱eting costs, non F1 activity costs, year end bonuses and the three highest paid persons per team costs.