FIA Refines Budget Cap Proposal Amid Resistance from F1 Teams
The FIA has put forward a revised budget cap plan for Formula One, aiming to control costs without splitting the grid by technical regulations, but major teams remain opposed.
The FIA has presented a new version of its Formula One budget cap plan, designed to rein in escalating costs while avoiding the complications of parallel technical rulebooks. The proposal follows earlier efforts by former FIA president Max Mosley, whose dual-regulation concept failed to gain traction among teams.
According to reports from Auto Motor und Sport, the latest FIA plan would see all teams run under a single set of technical regulations. However, teams that voluntarily accept a budget cap, set in the region of $120–150 million per year, would be granted greater freedom in how they develop their cars. These capped teams would have unlimited access to development tools and testing, including wind tunnel time and track days.
Technical restrictions for uncapped teams
Teams choosing not to accept the budget cap would face strict limits: 25 hours per week in the wind tunnel, 25 teraflops of computing power, and no more than eight days of on-track testing per year. The intention is to balance the performance potential of capped and uncapped teams, incentivising cost control without forcing it.
Despite this attempt at compromise, the big teams have rejected the proposal. Their concern is that capped teams, with fewer constraints on development, could end up outperforming the better-funded squads. The fear is not only about losing a competitive edge but also about the practicalities of policing such a system. As Force India’s Bob Fernley pointed out, it is unclear why any team would spend more money for less performance potential.
Alternative cost control ideas
FIA president Jean Todt has indicated he is considering further measures to limit spending. One alternative under review would cap the number of new parts a team can develop each season, for example, restricting each team to ten new suspension designs or twenty wing assemblies per year. Each part would be sealed by the FIA to prevent workarounds. This approach would target development costs directly rather than imposing blanket budget limits.
The debate reflects ongoing tension between the need to protect smaller teams and the reluctance of larger outfits to accept restrictions that might undermine their competitive advantage. The issue remains unresolved, with further discussions expected as the FIA seeks a solution that can win broad support across the grid.
For background on the wider budget cap dispute and its impact on leading teams, see Ferrari Board to Decide Scuderia F1 Future Amid Budget Cap Row.
