Michael Schumacher will see almost £5million wiped off his wages if Formula One’s cash crisis continues.

The six-time world champ expected to bank £25m from Ferrari for the 2004 season but may end up with £20.5m.

The cut is being blamed on the dramatic fall in the US dollar, the most widely used currency in the pit-lane when it comes to salaries.

All 10 teams will now find their share of the $350m global TV cash is worth less.

When the deals were done last season, the exchange rate was $1.4 to the pound — it is currently $1.77.

The weak dollar will hit many teams who have negotiated their sponsorship budgets in bucks.

Part of Ferrari’s monster budget — estimated at $250m — comes from Marlboro and Vodafone, who have both done their deals in dollars.

Ferrari boss Luca di Montezemolo said the firm is suffering because it is receiving 25 per cent less for the cars it sells in the US — where a third of its motors sell.

Most of McLaren’s funds are based on the Euro but rivals BMW Williams are backed by two big US corporations, Hewlett Packard and Budweiser.

Jaguar Racing, funded by US car giant Ford, will also see their 2004 budget is worth less if there is no sudden upturn in the dollar.

A source close to the team said: “We have to trade in dollars and any big currency fluctuation hits your spending power.”

Team chief Peter Sauber, who launched his new machine this week, said: “About 70 per cent of our annual budget is in dollars, so it’s clearly a problem.”

His Swiss-based team has $100m set aside for this season but, in real terms, that will be reduced by $9m.

David Richards, head of BAR, and Jordan Grand Prix boss Eddie Jordan will escape the majority of the problems.

Source: Sun