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Why F1's lost promise is a reality again

No, you've not gone back in time - a budget cap is back on Formula 1's agenda. It won't be immediate, but it looks almost inevitable

One of Formula 1's thorniest and most perennial topics is being visited with renewed vigour, with a budget cap now firmly on the agenda.

To Liberty Media, owner of the Formula One Group, the share price of its Formula 1 asset FWONK is king: the better F1's prospects of raking in money, the higher the price. As in any 'shopkeeper' model, Liberty's profit (read: share price) is dependent upon minimising cost of sales and maximising revenues: cut costs and/or boost income, and profits are optimised, with commensurate impact on share prices.

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