After over a decade of pushing and pulling, F1’s teams agreed last year to an annual budget cap of $175million. As the pandemic choked F1’s finances the stakeholders then agreed to an even more dramatic figure – $145 million for 2021, with a glidepath to $140 million next year, then $135million in 2023.
Broadly the cap on spending includes work on anything performance-related – salaries of engineering, design and manufacturing staff, along with materials and infrastructure, such as windtunnel and CFD operations. There are exclusions, including driver salaries, though these are likely to be subject to a separate cap. Also excluded are: marketing, human resources, travel and hotel costs, engine supply arrangements, superlicence costs, entry fees, non-F1 activities, employee bonuses, and the salaries of the three highest-paid personnel. It will…
