Cost cap: Team bosses face ‘work ban’ if caught ‘cheating’

Last night on Red Bull’s TV show broadcast by Austrian channel Servus TV, Formula 1 CEO Chase Carey talked about the delicate subject of cost caps along with Red Bull’s Helmut Marko.

Since the beginning of June this year, teams have been told how high the upcoming Formula 1 budget cap will be, and as always it is a compromise with which most people are not happy with: 175 million dollars is the limit a team is allowed to spend.


Clearly, a cap that is too high for the midfield racing teams, and too low for the top teams.

Further, a lot of costs are not included such as driver salaries, marketing or any expenditure for the engines, further enabling the big-budget manufacturer teams to outspend the rest of the grid.

Nobody is really happy with the solution: the midfield teams had hoped for a limit of 150 million. The top teams had hoped for a range between 200 and 250 million, which would be ridiculous as several spend at least that now.

But Liberty Media and FOM are convinced that it is feasible to meet the cost cap. As a punishment, it is planned to deduct points for a guilty team caught overspending and any team bosses who are deemed cheating would be threatened with a work ban. Astonishing stuff….

“It took us a good year to discuss the problem of costs in detail.” says Carey

“I think that the structure we have proposed will prove its worth. Our sport is complicated, we need rules that everything is reliably observed.”

“The plan is to do a test by 2020, which will have a direct impact on the process of how we can meet the costs.

“This will be a learning process for all of us, we have no illusions. My guess is that we will continue to refine the cost structure.

“But we need a starting point now. We want to change sport to make better competition possible.” concludes the American CEO.


Another Case Carey interview earlier this year

Red Bull’s Helmut Marko never shy of saying what he thinks, responds with a degree of skepticism saying:

“In the worst case we have an accountant world championship in which you are disqualified two months later because you did not keep the costs.

“Some people will have to be made redundant. We are looking for other fields of activity such as the development of the Hyper-Car.

“Maybe we could use a wind tunnel for both teams, Red Bull Racing and Toro Rosso together”.


The question remains, how does FOM and Liberty enforce the un-enforceable? Comments below are welcome.


One response to “Cost cap: Team bosses face ‘work ban’ if caught ‘cheating’

  1. “The question remains, how does FOM and Liberty enforce the un-enforceable?”

    FOM and Liberty Media are the same entity. Do you mean the FIA and Liberty Media? I still have a big issue with the commercial rights holder being part of any budget cap and technical discussions.

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