It has kept F1 teams busy all season: a dramatic increase in inflation and freight costs. The budgets of the formations are under significant pressure and some of them fear that they will not be able to stay below the promised amount. Red Bull team boss Christian Horner hinted that it was such a big problem that some teams might have to miss the Grand Prix to avoid the risk of a foul. Discussions are ongoing with the F1 organization and the FIA to try and find a solution by raising the cap, but not every formation is in favour.
Ferrari team boss Mattia Binotto said in Monaco his team will be in trouble unless the limit changes. He expects Ferrari to stay within the 5 percent infraction limit with no fixed penalty. The regulations state that these violations can be penalized with a reprimand, loss of driver and constructor points, disqualification from races, or a reduction in aerodynamic test limits or future cost caps. This means teams are unsure whether overspending will have a significant impact on work outcomes.
On request of Motorsport.com what happens if the budget ceiling is not raised, Binotto replies. “I think there’s no way to stay under it, so I’m pretty sure we’ll go through it at some point. There’s a 5 percent threshold in the regulations and if you don’t go over that 5 percent then that’s considered a minor breach,” says the Italian. “I don’t know what the penalties will be. It will be for us and others may actually be impossible to keep within limits. So laying people off doesn’t seem like the right choice to me. It’s already summer and it’s already not enough.” Paying excessive prices and costs. What will be the consequences “I expect many formations to exceed the cap and that’s bad for the financial regulations. When that happens, I expect a conversation about whether the regulations are working.”
Red Bull team boss Horner fears that Ferrari is not alone in struggling with this problem and assumes that there will be discussions about the penalties for exceeding the cost limit in the final stages of the season. “I think all teams have around $140 million,” says the Brit. “But what is the penalty for a minor infraction? We don’t want to play a game that says, are you going to 4.9 percent? Then we go to 4.7 percent. That could become an important factor in the championship. We’ll have clarity.” Soon “It’s not good that we don’t get clarity on this from a number of teams that aren’t involved. That was never the intention of the budget cap. Capping teams. No one could have predicted that when the cap was lowered by $30 million during the pandemic, these world events would send inflation skyrocketing.”