F1's top teams have a challenge in meeting the cost cap, as their budgets were determined well before the economic slump.
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Due to growing inflation and oil prices as a consequence of Russia’s invasion of Ukraine, F1’s $145 million cost constraint has come under additional strain. In comparison to last year, freight and power expenses have virtually quadrupled. As a result, F1’s top teams have a challenge in meeting the cost cap, as their budgets were determined well before the economic slump. Gunther Steiner, the head of the Haas team, believes that Formula One 2022’s intense midfield competition demonstrates that the sport cannot simply lift the budget limit to match growing expenditures for its largest spenders.
According to Mercedes team boss Wolff the situation has cost its team an additional eight million pounds due to freight and electricity costs which has nearly tripled compared to last year. Red Bull’s Christian Horner even suggested his team would have to miss races if it had to avoid going over the current cap. Recently Gunther Steiner says the cost cap has already improved the competition dramatically and thinks it is up to the biggest spenders to get their budget under control.
“It’s mixing it up, I think as I always said short-term nothing will change but mid to long-term I think it will get even closer together. But therefore, we shouldn’t now change the budget cap and up it because this is actually good for the racing in the midfield now. You never know who is best of the rest. And I think if we continue with the budget cap, and with the rules it will get even closer together to the big guys.” expressed Steiner.
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Steiner, whose team is still working up towards the budget limit rather than having to scale down, mentioned that working under a budget cap and getting through it successfully is a part of their job and it needs to be done regardless of any situation. “I mean, we all have to make it. I don’t have a job if I tell my boss I don’t make it to the end of the season. That’s my job. We need to do, because if you don’t finish the season, the next year you don’t get any money.”
Wolff and his McLaren counterpart Andreas Seidl are some of the team managers advocating for a brief budget cap exemption to mitigate rising transportation and utility costs while preserving the existing ceiling’s long-term integrity. Now will there be a temporary budget cap allowance or not, only time will tell.
