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Motorsport exists to advertise a product that is for sale. Cars, motorbikes, whatever, that's why it exists. When it costs more to participate than is recouped in the extra sales caused by the exposure gained, then it is no longer sensible to take part. This is why we now have just 3 factory teams left.
Bring down the costs and the factories return. I would therefore suggest a budget cap. With modern technology it can be easily policed.