F1 fired warning over future budget cap complication

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F1 fired warning over future budget cap complication

Could there be more issues for teams?

Ian Parkes

Wednesday 21 December 2022 19:50

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Former Williams team principal and CEO Jost Capito has warned inflation could cause further issues with F1's budget cap.

The financial regulations were introduced in 2021 with a cap set at $145million in an attempt to create a more sustainable and level playing field for teams.

Although seen as a resounding success, the cap has run into snags along the way, including displeasure with the handling of Red Bull's minor breach and the subsequent punishment.

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In the early stages of the past year, teams sought a break in the cap due to the soaring inflation experienced in the wake of the Russian invasion of Ukraine.

To add to the complications when budgeting for the next three seasons, the cap has been reduced to $135million.

Speaking to GPFans before leaving his position at Williams, Capito explained: "You have the inflation which might change that again because inflation has an impact, of course, on the logistics part.

"We can't do anything really. It gets more expensive.

“Hotels are getting more expensive and hotels are outside the cap but still we have also an overall budget.

"It's not just the cost cap and what is outside the cost cap we spend whatever we want. We have an overall budget and within this overall budget, we have the cost cap.”

Teams have to "be careful"

As defined by the regulations, only certain aspects of a team's operations are exempt from the budget cap.

Explaining that teams still had to "be careful", Capito added: "The flights, the hotels, everything is getting more expensive and we have our overall budget because we have a proper business plan and we have to stick within the budget.

“It's not just you're spending according to the cost cap and then everything is above and not including the cost cap you spend whatever you want. It's the situation we are in.

“It was the same for Williams in the past as well. They had a budget. Cost cap or no cost cap, there is a budget.”

Additional reporting by Ewan Gale