Ferrari team principal Mattia Binotto has explained why setting the same budget cap for all F1 teams won’t work and fears it would hurt the overall target of encouraging closer competition.

F1 teams have already agreed to a restriction on spending of $175 million from the 2021 season, excluding certain aspects such as driver salaries and marketing costs, but since the coronavirus crisis a move to lower the cost cap further has been suggest with estimations targeting as low as $100m per season.

Following video meetings involving F1 organisers, team bosses and the FIA, it is clear the idea has split opinion between the teams with Ferrari opposed to the idea in the short-term.

Ferrari boss Binotto says his team and the likes of Mercedes and Renault who manufacture every component and power units for their cars would be worst hit by the changes as they spend more on design and development while other teams purchase parts from them that are permitted under F1 rules.

Consequently, Binotto believes having the same budget cap for all F1 teams isn’t feasible and feels a sliding scale should be produced to give teams who construct key components like engines a bigger spending allowance to provide a fairer balance.

“We are discussing with F1, the FIA and all the teams a budget cap reduction but we should not forget when doing the exercise some of us have different structures and different assets,” Binotto told Sky Sports News.

“There are teams which are constructors, like Ferrari, and other top teams. We are designing, developing, homologating and producing each single component for our cars while other teams are customers so they buy some parts and do not have the same structure because they are not designing, developing and so on all the components.

“So I think when discussing a budget cap we should not forget the different situations and it is important that we find a common ground, somehow, that suits the different situations. Maybe the answer is not a single budget cap equal for all teams.”

Binotto also says F1 should not become reactive to the ongoing crisis hitting both the sport and the wider world amid the coronavirus pandemic and it needs to resist taking actions based on emotions.

McLaren, Williams and Racing Point have put staff into furlough while its drivers and key management figures have all taken pay cuts to help the team financially during the delays to the start of the 2020 season, while F1 organisers have also taken similar measures.

“I think we should avoid being emotional as we know that we will face difficult situations but we need to somehow maintain the DNA and essence of F1 which is competition,” he explained. “We should not forget that is what F1 and motorsport is about.

“I think it is important to really look at all details and make a rational decision that is based on considerations and not emotions.

“You also need to have a long term view so I think it is important that altogether we look ahead and make sure that we are taking the proper decisions with proper priorities but as I said before we should avoid acting on purely an emotional basis.”