Ferrari team boss Frederic Vasseur raises doubts over F1’s financial vision

The FIA introduced the cost cap in 2021 to reduce the performance gap between the frontrunning and back-marker teams.

Ferrari team boss Frederic Vasseur (Image credit: GPFans)

In 2021, F1 introduced groundbreaking financial regulations to promote a more competitive championship. By imposing spending limits, the aim was to level the playing field, allowing smaller teams to challenge those with larger budgets on an equal footing. While the lower-tired teams benefitted from this new rule, the front-running teams weren’t exactly on board with the FIA’s decision. However, Ferrari team principal Frederic Vassuer reckons that the sport doesn’t need new rulings.

Frederic Vassuer stated that, from his perspective, the expense ceiling presented a different viewpoint. He acknowledged the existence of rules that had undergone multiple revisions. According to him, stability is of utmost importance, and he expressed concern that frequent changes to accommodate new investments would undermine this stability.

“On the expense ceiling, it’s a bit different, from my point of view. We have rules and we have changed them several times,” Vasseur is quoted by formu1a.uno. “For me, the important thing is stability and if we start changing every week because someone wants to invest in something, that’s the end of stability.”

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Also read: WATCH: Ferrari boss Fred Vasseur pastes a Red Bull sticker on Helmut Marko’s forehead after Christian Horner pranked him

Frederic Vasseur calls for stability within the cost cap regulation

Frederic Vasseur and Mohamed Ben Sulayem (Image credit: The Mirror)

The implementation of the budget cap served another crucial purpose: to secure the financial sustainability of the sport. This cap effectively restricts the amount an F1 team can spend in a calendar year, decreasing the risks of increasing expenses. To maintain discipline, penalties are imposed on teams that exceed the set spending limit.

In the same interview, Vasseur pointed out that Williams has expressed interest in a new ERP system today, while other teams may seek similar investments in the future. The Cost Cap is a crucial measure to achieve cost, performance, and revenue equality, and they are actively working in that direction. Vasseur emphasized the necessity of supporting this solution, as its sustainability depends on it.

Is Toto gently implying that some other teams are playing around in the grey areas of staff time being allocated to #F1 and non-F1 projects? ?

Can't imagine who might try to circumvent the cost cap in that way… ? #F1 https://t.co/o2EkbB1YSo
— Rob Myers (@RobLMyers) July 27, 2023

“Today it is Williams who would like to invest in a new ERP system, tomorrow it will be someone else that he wants a new simulator and so on. The Cost Cap is a big step in cost, performance levelling, and revenue for the teams and we have gone in that direction. So, either we are supportive or it’s the end of this solution,” Frederic continued.