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‘We’ll meet in the middle’, F1 teams demand budget cap overhaul after overwhelming cost spike FirstSportz

Max Vertappen at the 2021 Dutch GP
Max Vertappen at the 2021 Dutch GP

Together with the new technical regulations, formula One introduced a budget cap ahead of the 2022 season. The budget cap is intended to limit the overspending of teams. Typically, established designers manage to build more and pump more money into components compared to newer teams. Set by Formula 1, this budget cap should keep the race even.

The budget cap this year is $140 million. Since 23 races exceeds the regulation’s cap of 21, there is an additional charge of $1.2 million per Grand Prix. So that’s $142.4 million this season for each team to spend on components, parts, logistics, supplies and other operating expenses.

With increased freight rates and shortages of key materials, teams are asking for a budget cap increase to as much as $7 million due to rising costs. The teams believe that these two cost factors are beyond their control and must be compensated for immediately.

Also read: “It’s like going back to the crime scene,” Chris Medland…

Should there be revisions to the Formula 1 cost cap?

formula 1
formula One

formula One However, freight and electricity costs have skyrocketed by as much as $6 million per team. Above all, freight costs have exploded and have doubled in some cases. “It goes up, and every time you talk about it, it gets higher.” said the Haas team principal Gunther Steiner.

The teams are demanding an additional $7 million to which they would be entitled in 2023 when the rate is expected to top 3% next September. The proposal calls for the seven million to be split between the 2022 and 2023 seasons. However, the FIA ​​​​and F1 leadership is reluctant to comply with these demands. You want to squeeze the bonus. What has once been promised cannot be taken back.

“It’s now even affecting the teams that are normally below the cost cap.” CEO of Formula 1 Stephen Domenicali is convinced of an agreement: “As always in such cases, we meet in the middle.” The cap restricts performance-critical expenses to create a level playing field, with three main areas focused on vehicle development, component manufacturing and testing and racing aim

Also read: “Hard work is starting to pay off,” Daniel Ricciardo is optimistic…

https://firstsportz.com/formula-1-we-will-meet-in-the-middle-f1-teams-demand-revisions-in-the-budget-cap-following-an-overwhelming-rise-in-costs/ ‘We’ll meet in the middle’, F1 teams demand budget cap overhaul after overwhelming cost spike FirstSportz

Subhankar Mondal

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