đź“Ť ‘The cost cap is like a diet: everyone claims they’re sticking to it, everyone cheats a bit, and someone eventually gets caught with a biscuit.’
Formula One’s budget cap was meant to rein in the excess — yet the sport still burns through money faster than a Mayfair hedge fund at an art auction.
Drivers on footballer wages, engines priced like Chelsea penthouses, and hospitality that could shame a royal wedding.
If you think the ÂŁ100 million cap actually caps anything, wait until you see what isn’t included.
Full Story
2021 – A New Financial Era Begins
F1 introduces the budget cap to curb runaway spending and level the playing field.
Teams begin rethinking how every pound is spent.
2024 – The Cap Tightens
The limit sits at roughly ÂŁ100 million, but only for specific operational areas.
Driver salaries remain gloriously untouched. Verstappen and Hamilton still command sums usually reserved for Premier League owners.
The top three executives — team principal, technical director, and financial director — also sit outside the cap.
What’s Excluded ~
Marketing & Hospitality:
Multi-million-pound global campaigns, trackside mansions disguised as ‘hospitality suites’, and VIP catering that would satisfy Claridge’s.
Travel:
Freight, flights, and hotels for hundreds of staff across 20+ countries.
Power Units:
Engines governed by their own rules, often costing tens of millions per season.
Where the Cap Actually Applies:
R&D, chassis construction, aerodynamics, and performance-critical parts.
Teams now treat every carbon-fibre tweak like a high-stakes investment decision.
Crossing the Line
Red Bull’s 2021 overspend proves the FIA means business: fines and reduced wind-tunnel time bite hard.
Today’s Reality
Modern F1 is a duel of accountants and aerodynamicists.
Victory demands financial discipline as sharp as race-day strategy.
đź“Ť ‘F1 used to be about who could spend the most. Now it’s about who can hide expenses with the finesse of a Monaco banker.’
