F1 Commission Shocks Fans by Raising Cost Cap
The F1 Commission confirmed that the cost cap for the 2023 season will be increased to accommodate the record-breaking number of races scheduled to take place. This decision was taken in response to the 23-race calendar slated for this year, which has resulted in increased costs for the teams.
As a result, the F1 teams will face a new financial goal to achieve, with modifications to the cost cap being approved by the F1 Commission. The cost cap is a limit on the amount of money that teams are allowed to spend on certain aspects of their operations, such as development, research, and design.
The increase in the number of races has prompted Formula 1 to revise a section of the cost cap, with teams now having an increased budget to work with. As part of several changes endorsed by the F1 Commission, the spending limit per race will be raised from $1.2m to $1.8m for every race held after the 21st event. This adjustment is aimed at accommodating the “expensive” flyaway races, and the “trend of the additional races being added to the calendar.”
With the increase in cost cap, the total increase for the 23-race calendar amounts to $1.2m. Several teams have cited the cost cap as a hindrance to their development efforts towards the end of the 2022 season. In the 2021 season, only Red Bull was found guilty of overspending, while Aston Martin had committed smaller violations.
The F1 Commission has also sanctioned amendments to certain sections of the Financial Regulations in addition to changes in the cost cap. The objective is to simplify the auditing process. In addition, a mandatory winter shutdown for competitors and power unit manufacturers, akin to the existing summer shutdown, has been agreed upon.
Overall, these changes have been welcomed by many within the F1 community, with some experts hailing the move as a step towards making the sport more financially sustainable. The amended regulations are expected to help level the playing field and provide a fairer platform for all teams, regardless of their financial standing. With the 2023 season around the corner, fans and experts alike eagerly anticipate the exciting developments that will unfold in the world of F1.