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Formula One managing director Ross Brawn hints at potential cure for current “budget cap crisis”

Formula One managing director Ross Brawn on the solution for the budget cap restrictions.


Ross Brawn the managing director of Formula One has recently hinted that the hierarchy at the head table of F1 is looking at solutions for the budget cap crisis and has stressed that it is just around the corner.


The team first got the taste of the budget cap era last season when teams were restricted to not going over the set budget of $145 million during the 2021 edition.

The teams were asked to do all the operational activities under the budget cap excluding power units, marketing and hospitality, team travel, car demonstrations, driver salaries, and the next top three highest-paid team personnel.

Ross Brawn

Things have gotten worse for the teams as for the current season, the budget cap is further reduced by $5 Million to make it $140 million for the current season. It is expected that a further $5 Million reduction would be done for the next season of Formula One.

The United Kingdom is the main hub when it comes to Formula One as 7 of the 10 F1 teams are based there and the region is currently facing an inflation rise that has not been seen for 30 years.

The freight costs have risen in the region and along with this, the cargo has been delayed at various transit points and has affected Haas at pre-season testing and also MotoGP at its Argentine round. This issue also came to light during last season’s Brazilian Grand Prix.

Ross Brawn on the upcoming solution for the budget cap restrictions

Ross Brawn

Christian Horner the Red Bull team Principal earlier during the season brought the budget cap issue to light and asked F1 to review it with a “degree of urgency” in order to make sure teams are able to get a fair shot at not going over the cap limit.

I think the inflation increase needs to be reviewed,” explained Brawn.

When these rules were developed, the inflation was relatively low and predictable and now it is high and unpredictable.”

If you look at inflation rates that apply to industrial enterprises, like a Formula 1 team, you have power, materials, all the things which require expense.”

So I think there is a solution coming on that.”

Formula One

Ross Brawn with his comments has ensured all the 10 teams that a solution to the problem is not very far and it will be quite fascinating to see what exactly F1 is able to come up with as a solution to the problem that has recently become the “Achilles heel” of most Formula One teams.

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Rishabh Negi is an F1 author at FirstSportz who ardently follows Formula One and is also a passionate supporter of the Arsenal football team. He has done his Master's degree from the Delhi School of Economics and sees writing about F1, as something, that provides him solace to disconnect from the everyday chaos of life.