Formula 1 commercial rights holder Liberty Media is to present more detail on its plans for the sport's future at a key meeting with the teams in Monaco on Friday. The contracts that underpin every aspect of F1, from its governance structure to the sharing of revenue between the teams, come to an end in 2020.

Liberty presented a basic five-point outline of its 2021 vision to the teams at the Bahrain Grand Prix in early April, but the nature of the proposals and the general lack of detail provoked a backlash from some of the stakeholders. Liberty's five-point manifesto for change includes simpler, louder engines, a cap on team expenditure, more equitable division of prize money, a simplified governance structure, and new technical regulations aimed at improving the racing spectacle.

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'It's a highly complex matter because it's about a cost cap – a potential cost cap – it's about technical regulations, revenue distribution, so there are multiple balls in the air which we need to catch,' said Mercedes team principal Toto Wolff. 'I also hope that the meeting is productive so we understand more and can act upon it.'

The most controversial elements are the proposed budget cap, believed to be in the region of $150million, and the simplification of the engines by removing the MGU-H. Mercedes and Ferrari in particular have pushed back against concepts which they claim might dilute the brand value of F1.

Liberty also plans to change the way revenue is distributed among the teams. Currently Mercedes, Red Bull, Ferrari, Renault and Williams enjoy a larger share based on historic performance. Ferrari enjoys a further bonus on account of its historic status. The new proposals aim to achieve a 'more balanced' set of payments more closely reflecting 'meritocracy of current performance'. Ferrari's bonus would be cut rather than removed entirely, though, since Liberty has committed to respect 'historical franchise and value'.

 

It is expected that the main point of debate will remain the engine regulations, the costs involved and the philosophy behind them. Of the current manufacturers, only Renault is committed to the sport beyond 2020. 'The direction of the sport should be more competitive, there should be higher fan engagement, and I think sponsors are excited about the future of the sport,' said McLaren CEO Zak Brown. 'Drivers either want to drive in Formula 1 or they don't, so I don't hear any drivers contemplating whether they want to drive in the new era.'