The FOM and FIA have sent a letter to F1 teams relaying the information about the new budget cap guidelines for 2021 and beyond along with other changes.

After Ross Brawn confirmed on Monday that a meeting was held between FOM and FIA, the F1 teams have been sent a letter as per BBC Sport, who have seen the contents on it, which relates to the new budget cap guidelines and other changes.

As per the letter, F1 is set to have a budget cap of $145 million as opposed to $175 million, which will come down by $5 million in 2022 to be $140 million, further $5 million drop in 2023 to be $135 million, which will remain until the 2025 season.

It will be now on the F1 teams to make an assement and give their vote where as per the FIA’s ‘safeguard clause’, they don’t need unanimity anymore. This puts the potential Ferrari blockage in check as they wish to not hinder decision making amid COVID-19 pandemic.

The $145 million mark shouldn’t be an issue for Ferrari as they felt it to be an attainable cap, even though, it still is a huge request. But the bigger question mark will be the $5 million drop in the coming F1 seasons, which needs to be ascertain.

It could be adjusted in some ways by two other changes planned as per the letter and the discussions. One of them is a aerodynamic block for the Top 3 teams, where they will only work at 70 percent in their wind-tunnel for the following F1 season.

Likewise, the fourth best team will get to work at 80 percent, with fifth getting 85 percent, sixth 90 percent, seventh 95 percent, eighth 100 percent, ninth 105 percent and 10th at 110 percent, which is a 40 percent increase between the Top 3 teams and them.

In F1 terms, the gap could be huge, even if they don’t catch the top half but their immediate rivals. Another relief for the midfield teams is the parts they buy from the manufacturer like gearboxes, suspension and more, will get a ‘notional value’.

Once those items are bought, their defined value will be taken off their budget cap. Among other changes, it is already known that the regulation changes will come into effect from 2022 as they will continue with 2020 car in 2021 F1 season.

The letter noted about the weekend format changes for 2020 as it stated that the cap on engine development will be discussed later on. Another point regarding the budget cap was that there will be $1 million different if races fall or increase on either side, with 21 grand prix taken as the absolute figure for $145 million budget cap.

Here’s what Ross Brawn said regarding budget cap and 2020 plans

Here’s what Bernie Ecclestone stated on various topics

Here’s the last from Ross Brawn on 2020 F1 season

Here’s latest on what F1 is planning for 2020

Here’s FIA on extension of F1 shutdown

Here’s Liberty Media on reattribution