F1 budget cap should be just $75m – Agag

Budget caps, especially Agag's proposal of $75M will result in thousands of layoffs across F1

(GMM) Formula 1's new budget cap should be as low as $75 million in the wake of the coronavirus crisis.

That is the view of Formula E boss Alejandro Agag.

"In general, this could be an opportunity for motorsport," he told motorsport-total.com.

"Especially for Formula 1, it could be a huge opportunity to restructure the entire model," Agag added.

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"I'm hearing about budget caps of $125 million and that sort of thing. Then why not have a cost cap of $75 million and make everyone really profitable?"

Agag even thinks the timing of the crisis could be a blessing for F1.

"Perhaps it is a good thing that the Concorde Agreement has not yet been signed, because it contained a great many things that were a kind of burden for Formula 1. Some teams earned so much and some teams so little," he said.

"Perhaps there is now an opportunity to completely change the entire system. If people don't realize that the world will be different after the coronavirus, they are making a big mistake.

"The opportunity is there now but you have to take it."