All the F1 teams unanimously agreed to introduce a $30m salary cap from 2023

Formula 1 teams have reportedly agreed to introduce a $30m cap on drivers’ salaries from 2023, potentially imposing such a limitation for the first time in Grand Prix racing’s history.

According to a report from Daily Mail F1 correspondent Jonathan McEvoy, teams were unanimous on the salary cap idea which was tabled during a virtual meeting of the F1 Commission on Monday.

F1 will implement a $145m budget cap for teams from next season that will progressively drop to $135m for 2023. But the cost cap does not include the expense earmarked for an outfit’s pair of drivers.

The novel salary restriction would therefore work together with a team’s budget cap.

Only a handful of drivers enjoy the benefits of an eight-figure salary in F1, with Lewis Hamilton, Sebastian Vettel and Daniel Ricciardo considered the sport’s current top-three earners.

But the new rule, if quickly ratified and deemed legal under the various jurisdictions covering F1, could impact the ongoing contract negotiations between Hamilton and Mercedes.

The Hamilton contract expires with Mercedes at the end of 2020, but the Briton has already indicated on several occasions that he is in no hurry for these negotiations. First, the world title must be in, and only then will talks on a new contract follow. That may well change now.

Lewis had already expressed doubts about his future in F1 and did not dare to look beyond three years. In those three years, Hamilton will have to take into account that a lot of his salary will have to be surrendered in 2023. Hamilton would sign a contract for some EUR 44 million, which would be almost EUR 20 million above the cap.

Source: f1i.com; gpblog.com