Sergio Marchionne: "I don't believe a budget cap can work"

Sergio Marchionne has played down Liberty Media's attempt to introduce a budget cap into Formula One.

The sport's new owners are keen to cut down on spending and the idea of a budget cap has been mooted.

Of course, this isn't the first time the idea of a budget cap has been put on the table. However, the idea has almost always been shelved because of its perceived impracticality.

"The reality is Formula One is an extremely expensive sport," Ferrari president Marchionne told The Sun. "I accept the goal of reducing costs but much depends on us and how we adapt to these demands. But I don't believe a budget cap can work."

"When I look at old reports — ten years and even further back — I deduce that Ferrari has never held back when it comes to spending," he added. "Despite all these interventions by the FIA to try to limit spending, the teams have found other ways to spend."

"This is the old problem for all those who try to impose limits on car development: if areas are left open, spending concentrates in this area. "

"If I look at the last four of five years, we haven't saved a Euro, we have simply redistributed our spending to other areas," he revealed. "In principle it's very noble but, then, the effect never gives the necessary results."