The “borderline” team compromise that staved off an F1 crisis

By:

GP Racing

Oct 16, 2022, 10:13 AM

Formula 1’s budget cap was heralded as a radical advance, the saviour of smaller teams, and the pathway to a brighter commercial future for all. So why were so many teams so keen to either break it or negotiate a raise? As MARK GALLAGHER reveals, it’s not just about the cost of crash repairs

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Following the introduction of Formula 1’s budget cap, the one thing which seemed inevitable was that its limits would soon be tested. Coping with factors inside F1 was one thing: financial allowances were made for the addition of sprint races and the ever-expanding nature of the calendar.

Turn to factors outside F1’s control, and the shrinking nature of the global village and its impact on every facet of staging a world championship becomes evident. COVID-19 proved that. F1 ground to halt in spring 2020 and is still dealing with the pandemic’s effects on global travel, supply chains and logistics. As a result this year’s budget cap, a ceiling of $140m on each team’s race car design, manufacturing and operations, was already at odds with a world of variation, fluctuation and unpredictability.