Formula 1 teams to get key 2021 update in Monaco

The contracts that underpin every aspect of F1, from its governance structure to the sharing of revenue between the teams, come to an end in 2020.

Liberty presented a basic five-point outline of its 2021 vision to the teams at the Bahrain Grand Prix in early April, but the nature of the proposals and the general lack of detail provoked a backlash from some of the stakeholders.

Liberty's five-point manifesto for change includes simpler, louder engines, a cap on team expenditure, more equitable division of prize money, a simplified governance structure, and new technical regulations aimed at improving the racing spectacle.

"It's a highly complex matter because it's about a cost cap - a potential cost cap - it's about technical regulations, revenue distribution, so there are multiple balls in the air which we need to catch," said Mercedes team principal Toto Wolff.

"I also hope that the meeting is productive so we understand more and can act upon it."

The most controversial elements are the proposed budget cap, believed to be in the region of $150million, and the simplification of the engines by removing the MGU-H.

Mercedes and Ferrari in particular have pushed back against concepts which they claim might dilute the brand value of F1.

Liberty also plans to change the way revenue is distributed among the teams.

Currently Mercedes, Red Bull, Ferrari, Renault and Williams enjoy a larger share based on historic performance. Ferrari enjoys a further bonus on account of its historic status.

The new proposals aim to achieve a "more balanced" set of payments more closely reflecting "meritocracy of current performance".

Ferrari's bonus would be cut rather than removed entirely, though, since Liberty has committed to respect "historical franchise and value".

While Mercedes and Ferrari are broadly aligned with each other, Red Bull's position is more complex since it has lobbied against the complexity of the hybrid engine regulations since the current formula was introduced in 2014, but it remains opposed to the philosophy of a budget cap.

"Hopefully a lot of detail will be put on the table [at the meeting] as to what Liberty's next steps are," said Red Bull team principal Christian Horner.

"They need to be responsible steps because some things, such as budget caps, involve literally thousands of jobs through teams, suppliers and subcontractors, certainly in the UK.

"We're waiting with interest to see what the next stage of that rollout is."

It is expected that the main point of debate will remain the engine regulations, the costs involved and the philosophy behind them. Of the current manufacturers, only Renault is committed to the sport beyond 2020.

"The direction of the sport should be more competitive, there should be higher fan engagement, and I think sponsors are excited about the future of the sport," said McLaren CEO Zak Brown.

"Drivers either want to drive in Formula 1 or they don't, so I don't hear any drivers contemplating whether they want to drive in the new era.

"Engines, that isn't yet defined - and that is the one area that I think may be difficult, sitting here today, to make decisions on, because I'm not sure every engine manufacturer in the sport today is definitively committed for 2021.

"But I think we've got to have faith that everything is going to go in the right direction and that the sport is only going to get more exciting. I don't see anyone leaving."