ABSTRACT
Based on a sport analytic report, this study is centered around the performance budgets of Formula One (F1) teams, and how efficient they are in relation to their on-track results. This topic is chosen and deemed important as there are significant financial rule changes that have been approved for the 2021 season in F1 in an attempt to restore some much-needed competitive balance to the sport. There are plenty of opinion pieces from F1 commentators regarding how the new rule changes will be reflected in the standings next year, but not many that are backed up by an analytical approach of any kind. The goal of this paper is to predict how the standings may look for the 2021 season but to do so in a way without conjecture and, instead, allowing for a more objective look into the future of the sport. The provided data analysis is expected to provide an indication for which teams will benefit the most from a more even financial playing field. Throughout this paper, there will be a comprehensive overview of F1 in order to provide as much context to this situation as possible, which is followed by a description of the data analysis performed. Discussions are further made in terms of practical implications.
