Ever since 2021, the FIA has cracked down and made lives difficult for most if not all teams on the grid. The FIA introduced the budget cap in 2021 at $145 million. However, in 2023, the ever-reducing cap is down to $135 million. This scenario has become a problem, especially for the top teams on the grid. Especially because the top teams also hire top drivers and engineers who demand high salaries. Although, thanks to a loophole in the cap, teams like Mercedes are able to retain drivers like Lewis Hamilton and the Brit is able to maintain his privilege.

Hamilton is yet to extend his contract with Mercedes set to expire at the end of the 2024 season. According to reports, there is a delay because of some of the Brit’s unique demands in his new contract extension. However, any monetary demands will not come in the way of the team’s budget cap allocation. This is thanks to the loophole which was discussed in the latest episode of the ESPN Unlapped podcast.

“There are some exceptions to the cap. The drivers aren’t included in the cap so before you think Lewis is on $50 million so that must wipe out at least a good third of Mercedes’s budget. Well, not quite, the drivers are still out there and the top three staff team and also marketing is an exception to make sure the teams can basically promote themselves and promote the sport,” explained Laurence Edmondson.

Now, Hamilton’s already existing $50 million salary or any increments will not be a problem for Mercedes. In fact, the F1 salary is a small part of Hamilton’s income. However, loopholes are making it easy for Mercedes to retain him and other highly paid staff members.

Read More: Despite Pocketing $5,000,000 More Salary Than Lewis Hamilton, Max Verstappen Gets Beaten in an Elite Money Battle

However, in 2023, the FIA is planning to bolster its financial department.

The FIA Plans to be Stricter on Lewis Hamilton and Co. as a repercussion of the backlash from the previous season

All the teams on the grid publicly opposed the penalty that was levied on Red Bull for breaching the 2021 budget cap. In fact, the ex-Ferrari boss and Toto Wolff even penned down a formal letter to the FIA demanding strict punishment. However, after the FIA revealed the penalty levied on Red Bull the governing body had to vigorously defend themselves.

As a result, the governing body has come up with an amendment to the law. They have also bolstered the financial department by increasing the number of employees which is making the auditing process faster. The FIA is also planning to be more strict with the punishments for any breaches of the 2022 cap.

It will be interesting to see how the guilty teams will deal with any reprimands stricter than the ones Red Bull received for their transgressions, especially if Red Bull has managed to stay within the limit.

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