Formula One Management (FOM) head Bernie Ecclestone has spoken in favour of possible budget caps in Formula One, stating that teams need to learn how to be competitive with less money and spend more money on racing related matters rather than on "baronial motorhomes and all kinds of entertainment".
Ecclestone was speaking in an interview with the official F1 website, www.formula1.com, where he spoke about the need for those involved in F1 to "tighten their belts" and believed that there were still too many people in the sport wearing "rose tinted glasses".
The subject of budget caps was a controversial one when it was first introduced in F1 in 2009 by then International Automobile Federation (FIA) president Max Mosely. At the time it was suggested that a 40 million pound budget cap be introduced and the teams that adhered to it to be allowed greater freedom in the technical regulations.
This raised concerns, at the time, that F1 would become a two-tier championship with teams that worked within the budget cap and those that didn't. Currently, a Resource Restriction Agreement (RRA) is the only means of controlling teams' budgets. However, the RRA is a 'gentleman's agreement' rather than a written rule and there have been suspicions of teams like Red Bull Racing breaching the limits set by it.