Spending by Formula One teams will be capped at $145 million in 2021 with subsequent cuts for a limit of $135 million by 2023, it was announced Wednesday as the sport's rulers attempted to stem the bleeding from the coronavirus pandemic.
The FIA's World Motor Sports Council ratified the amendments to F1's rules after seeing a season decimated by COVID-19 with 10 of the scheduled 22 races already either cancelled or postponed.
From 2021, costs will be capped at $145 million (132 million euros) with a limit of $140m for 2022 and $135m for 2023-2025, based on a 21-competition season, said a FIA statement.
Before the pandemic struck, a spending cap of $175m was set to be introduced next year in a bid to help even up the competition.
"The World Motor Sport Council has approved further changes to the regulations governing the FIA Formula One World Championship primarily due to the ongoing need to reduce costs and safeguard the sport in light of the COVID-19 pandemic," added the statement.