F1 Big Teams Wager Performance for Participation With Impossible Budget Cap

Published 05/24/2022, 10:45 AM EDT
Formula One F1 – Saudi Arabia Grand Prix – Jeddah Corniche Circuit, Jeddah, Saudi Arabia – March 26, 2022 Red Bull team principal Christian Horner and Ferrari team principal Mattia Binotto during qualifying REUTERS/Hamad I Mohammed/Pool

The F1 budget cap has been a topic of discussion for quite some time now among the fans and teams alike. This was initiated last season, with the hope of bringing the grid closer together. While it was not the major topic of interest in the paddock during 2021, it certainly is during the 2022 campaign. Teams are careful to spend on developments and upgrades.

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The F1 budget cap offers a solution to the problem of having too much spending power for the biggest teams and less for those at the back of the grid. While 2021 saw a $145 million cap for the teams, the FIA decided to reduce it further by $5 million for this season.

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This has not gone down well among the top teams. They believe that with the current inflation, some teams could not race as the season progresses. One reason that the top teams are not happy is that they have more employees, compared to the smaller teams. As a result, their costs are higher.

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Team bosses, including Mattia Binotto and Christian Horner, have voiced their opinion on this. In fact, the Ferrari team principal has even fired a warning to Red Bull for their spending.

Formula 1 teams are keeping tabs on each other

With the advent of this new regulation, the control of costs within the championship is even more important. The observers have become essential. Teams are keeping tabs on each for even the minor upgrades others are bringing.

While teams are looking at the budget in a scrutinizing fashion now, this was not the case in the previous years. However, from 2021, the budget plays an important part in a team’s planning. Upgrades and development are carefully handled. So, naturally, teams keeping lists of the upgrades and the price of the parts is similar for everyone.

For example, according to reports, a front wing costs around 100,000 euros ($ 106,000), and a rear wing is estimated at 65,000 euros ($69,000). McLaren came into the Spanish GP with massive upgrades for both their cars, which would have costed them 700,000 euros ($748,000).

Mattia Binotto and Christian Horner have their say on the F1 budget cap

Teams have taken a different approach to bring in upgrades. While Ferrari brought massive new upgrades to Spain, Red Bull have brought minor packages to every race. With that in mind, Mattia Binotto strongly suggested that Red Bull and other teams could face issues with budget cap.

Formula One F1 – Spanish Grand Prix – Circuit de Barcelona-Catalunya, Barcelona, Spain – May 22, 2022 Ferrari team principal Mattia Binotto Pool via REUTERS/Manu Fernandez

He said, “It is no longer possible to bring new parts to every race. With the pace of development we are now seeing, many teams will soon have to reach the limits of the cost cap.”

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Mercedes is in a similar situation to the Milton-Keynes outfit, according to reports. The Silver Arrows also brought some significant upgrades to Spain, including a new floor. The experts predict, “If everyone plays honestly, there can be no further development after the Canadian GP.” Further, a team boss also said, “Or we have to lay off 50 people.”

Meanwhile, Christian Horner says that several teams might not race in the last few races as a result of the budget cap. “Seven of the teams would probably need to miss the last four races to come within the cap this year,” he conveyed.

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DIVE DEEPER

What are the Budgets for F1 Teams Including Mercedes, Red Bull & Ferrari?

10 months ago

As the season progresses, teams will look to spend in a limited fashion, which could have an effect on their performance. In the meantime, what is your opinion on the budget cap in F1?

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Rahul Madhavan

436 articles

Rahul Madhavan is a Formula 1 writer at EssentiallySports. After completing his Bachelor's degree in business administration, he is pursuing his love for sports in the form of writing. Rahul is an avid McLaren fan, who also enjoys writing about soccer.

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