Mosley warns Formula One could collapse over financial crisis
Former FIA president Max Mosley says half of F1 teams cannot compete under current financial arrangements and urges unanimous action to prevent the sport's collapse.
Max Mosley, the former FIA president, has warned that Formula One risks collapse if it fails to address the widening financial gulf between teams. Mosley, who led the FIA from 1993 to 2009, said at least half the grid cannot compete effectively under the current system, with smaller outfits struggling to survive as costs escalate and prize money remains unevenly distributed.
Financial strain threatens F1 teams' survival
Mosley’s concerns come after the collapse of teams such as HRT, Caterham and Marussia, which left the grid depleted and highlighted the fragility of smaller operations. Sauber, Force India and Lotus have also faced shrinking budgets, with their ability to design and run competitive cars under threat. According to Mosley, the current commercial structure leaves these teams unable to match the resources of the biggest names in the sport.
He compared the financial imbalance to technical unfairness, arguing that letting one team spend five times as much as another has the same effect as allowing a bigger engine. "It's not fair from the sporting point of view," Mosley said, calling for a new approach to prize money distribution and cost control.
Obstacles to reform
During his time at the FIA, Mosley attempted to introduce a mandatory budget cap, but faced resistance from several teams, most notably Ferrari, and threats of a breakaway series. The resulting commercial agreements, brokered by Bernie Ecclestone and the FIA, now require unanimous agreement among teams to implement major changes. Mosley believes this structure makes it almost impossible to enact the reforms needed to secure the sport’s future.
Mosley said the FIA's current position is weaker than in previous decades, with Ecclestone and the teams able to outvote the governing body on key decisions. He described the sport as "too technologically complex and therefore expensive", with much of the development invisible to fans and even kept secret within teams. This complexity, he argued, further drives up costs and widens the gap between the best-funded and the rest.
Unanimity required for change
Mosley maintains that the only way to address the crisis is to bring all teams together and secure unanimous agreement on reforms. He acknowledged the challenge, given the competing interests, but insisted that without collective action, Formula One risks losing more teams and ultimately collapsing under its own financial weight.
The warning comes as financial insecurity remains a persistent threat to the grid. With recent team failures and others reportedly at risk, the debate over cost control and revenue sharing is likely to intensify. For further context on teams under threat, seeForce India faces collapse as Mallya’s financial crisis deepens.
