Formula 1 welcomed its first financial regulations at the start of the 2021 season, setting an initial budget cap for the year at $145 million (just over €128 million) per team. This figure fell to 140 million dollars (almost 124 million euros) by 2022 and, as stipulated, another reduction of 5 million was planned for 2023.
But due to the uncertain financial situation that the entire world is suffering, the increasingly high levels of inflation and the constant increases in transport costs, several teams pressured the category to make a readjustment in the budget limit.
After the last meeting of the F1 Commission , held this Friday morning in Austria, it was confirmed that an increase in the budget cap of 3.1% had been approved. That decision was supported by Formula 1, the FIA and nine of the 10 teams on the grid.
In a joint statement from the highest category and the FIA they explain that the increase in inflation rates since the end of last year have caused “a risk of non-compliance with the financial regulations if no action is taken”, which obviously justifies the intervention.
“Following consultations with the Financial Advisory Committee in recent weeks, the FIA submitted a proposal to the Commission which was approved by a majority and also received the support of the FIA as well as Formula 1 and nine of the teams. , reads the statement.
“The proposal recognizes that there has been an unexpected increase in the costs of the teams in 2022, thus allowing an increase in the budget limit of 3.1% (which takes into account the original inflation threshold of 3% already established by the regulations). and the capitalization of this same rate as of 2023”.
“This will protect the integrity of the financial regulation in the long term,” the statement concluded.
Ferrari warned at the end of May that there was “no chance” of staying within the budget cap this year due to rising costs, while Red Bull boss Christian Horner warned of a “catastrophe” from the crisis. .
Some of the smaller teams were somewhat more reluctant to agree to a change in said regulations, with Alfa Romeo principal Frederic Vasseur telling the larger ones to simply develop their cars less in order to stay within the limit, as obviously it was the same for everyone.
Among other relevant news from the F1 Commission meeting, it was approved that next year’s pre-season tests can be held outside Europe, four days before the first race of the course.
Under current sporting regulations, winter testing can only take place on European circuits, unless the majority of teams agree.
This opens the door for Bahrain to be the only track to host pre-season testing in 2023, before hosting the first round of the campaign.
The F1 Commission also confirmed that the planned measures to combat porpoising and flexible floors have been delayed until the 2022 Belgian Grand Prix in August, as according to the previous technical directive, it should have started in Paul Ricard, France. .
