Formula One has been actively pushing for greater financial sustainability over the last couple of seasons by the introduction of a team cost cap in 2021. The measure was taken to restrict bigger teams from using their surmountable resources and provide the smaller teams an equal opportunity to win the championship.
The racing body introduced a $145 million budget cap in 2021, which was further reduced to $140 million in 2022. Not just that, the figure is expected to decrease by $5m next season. However, the significant inflation in several European countries has seen a shocking rise in the increase of energy and freight costs. The Russian invasion of Ukraine has affected the world economy, which has increased prices. As a result, the F1 teams fear that they will not be able to keep their expenses within the budget limit.
But, F1 has excluded several expenses from the budget cap, including the drivers’ salaries. Moreover, the racing body has proposed the possibility of introducing a salary cap for the drivers in the coming seasons. During the racing weekend in Monaco, the two-time world champ Fernando Alonso shared his opinion on the proposed salary cap and how it would affect the drivers. The Spanish driver does not feel the need for a salary cap in F1. He shared that the drivers have always been outside the budget limitations.
Fernando Alonso also felt that the racing body is using the drivers more and more with events and contacts with the fans to promote the sport on a larger scale. The Alpine driver stated that F1 is asking more from the drivers and benefitting from it. He added, ” So we should be outside from the cap. It’s very complicated.”
F1 Pushing For a $30M Salary Cap
Several top-tier Formula One drivers, including Lewis Hamilton, have questioned the introduction of a salary cap. The seven-time world champ felt that the limitations could affect younger drivers amid the image rights restrictions. Moreover, Alfa Romeo’s F1 chief Fredric Vasseur suggested that the salary cap for drivers and the key figures would be the next topic on the table for Formula One. The racing body aims to achieve financial sustainability. The salary cap proposal sets a $30m figure to cover the salaries of both drivers. Moreover, if the figure goes beyond the salary cap, the extra money spent would come out from the team’s cost cap.
Meanwhile, the rise in cost has generated concerns in several team camps as they requested an increase in the budget. Ferrari has claimed that they had no chance of staying inside the budget cap during the season. Red Bull has claimed that they might have to miss out on a few races to stay within the limit. Mercedes team boss Toto Wolff also expressed his concerns. He requested a temporary allowance to cover the fuel, and transportation costs. However, the smaller teams have been against any increase or changes in the budget. They think that an increase will affect the competition in the midfield massively.