F1 bosses will present their plans to teams to try to make the sport more competitive

Formula 1 faces a crucial meeting Tuesday as the bosses present their plans to the teams for the future of the sport from 2021.

The Liberty Media owners and the FIA's governing body will introduce a budget cap and restructure the income distribution to make F1 more competitive.

The agenda of the meeting was sent to the teams without further details.

The package is the result of 12 months of discussions after Liberty presented its hopes for the future of F1 last April.

The meeting will focus on:

• Limit the annual budget of the teams, from 2020 or 2021, to a figure greater than 200 million dollars (151 million pounds sterling) per year and reduced to less than 150 million dollars (114 million dollars) here three or four years
• Revised income distribution to reduce the income gap between the best teams and the others
• Revised governance to end the current system where only six of the ten teams have a say in the rules
• An overview of technical rules that will aim to allow cars to run closer
• Revised engine rules, retaining current 1.6-liter turbo V6 hybrids, but with modifications to make them stronger
• Modification of the rules governing the number of coins that teams can buy from rivals while respecting the requirement to be a full-fledged constructor

The Liberty goal is to prevent F1 from being a two-speed sport, where three teams have a huge performance advantage, to the point that no other team than Mercedes, Ferrari and Red Bull can not hope to win a race.

The budget ceiling is the key element of this plan and has been the centerpiece of the discussions over the past year.

F1 General Manager Ross Brawn said the discussions had been intense and difficult and that it was unlikely that they would end with the publication of the 2021 rules.

"Income is a difficult issue, we know it," said Brawn.

"Those who have it all want to keep it and those who do not want it anymore, and it's finding the right balance in the way we can spread the income because we know if we have a distribution more fair income we will have a better F1, and that's a fact.

"We will never be in a situation of cost containment, for example, where we will publish a definitive settlement on a given date and that will be the end." The subject is too complex.

"So as the situation evolves and we see new challenges and problems, we will have to evolve and fine-tune the regulations to achieve the goals, which is no different from technical and sport regulation.

"And in both of these areas, there are well-established routines and protocols, and even then, there are arguments.

"So, it would be naïve to think that financial regulations will be put on the table and that's all, let them.

"Each team has a different set of priorities and we try to find the best solution, but I can see real progress."

A number of areas are likely to be considered beyond spending limits, including driver salaries, executive compensation and many aspects of marketing.

And one of the main problems will be how spending limits will be controlled, especially in the context of large companies involved in F1.

Many are worried about whether the FIA ​​will be able to control teams such as Mercedes and Ferrari, whose F1 operations are part of much larger organizations where work could potentially be hidden.

The tendency of small teams to become friends with larger teams is also a major issue of contention.

For example, Renault, McLaren and Williams worry a lot about Haas, who buys as much parts as possible from Ferrari, leaving them only the aerodynamic surfaces and chbadis to design.

This year, the Red Bull junior team, Toro Rosso, has followed the same path: his 2019 car is made up of as many parts of the 2018 Red Bull as it is allowed.

This practice is expected to be restricted.

McLaren argued for an approach whereby teams must either manufacture their own parts or buy standard parts from the FIA.

This would eliminate the practice of buying parts from management teams and give teams such as Haas the ability to build more competitive cars with a budget and resources inferior to those needed to operate on the McLaren model. Williams, who still operate as fully independent builders.

McLaren Managing Director Zak Brown said, "We need a level playing field, not just for McLaren, but for the entire network, which means a fair distribution of revenue." I do not think that means a tie.

"A realistic budget that many teams can achieve through cash prizes and sponsorships.

"And then the DNA of F1 has always been a builder, so the equipment should only be parts listed (that the teams have to manufacture themselves) or standard parts if we want to help the teams who may not have the capabilities to manufacture the listed parts.

"But I do not think you should have teams providing teams but not all.

"It would make a F1 truer, better for everyone.

"Governance needs to be addressed because many of the rules we try to meet are aggravated by team alignment.

"I think teams need to have a say and a vote, but not to such an extent that we can prevent things from happening."

"As in big sports, there should be different winners more often, different champions and then I think we all win."