Jim Wright: F1 ‘cost-cap lobbying’ is unprofessional
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Christian Horner, Toto Wolff and Mattia Binotto
The cost cap was introduced last season, beginning at the base level of $145 million. This year, the cap has been further reduced, down to $140 million, and is scheduled for a further $5M decrease next season. The 135 million mark is around where it is supposed to stabilize. This regulation was introduced in order to bring the field closer together. It does this by limiting the spending of the teams, promoting a fairer framework in the sport, and decreasing the advantage of the teams at the absolute top of the pecking order.
The top three teams – Mercedes, Red Bull, and Ferrari all believe that due to the currently high inflation and increasing costs, it will be impossible for them to remain below the budget cap. Not everyone feels the same way, and Alpine, Haas, and Alfa Romeo disagree. Red Bull’s Christian Horner even said that teams might have to miss races to not breach the budget cap.
Earlier this year, Horner had said:
“I think basically probably about seven of the teams probably need to miss the last four races to come within the cap this year, from the consensus that there has been up and down the paddock.”
The Red Bull team boss’s protests were echoed by Ferrari and Mercedes. Mattia Binotto felt there was absolutely no chance that Ferrari would stay within the cost cap:
“I don’t think there is any way for us and for many teams to stay within, and even laying off people I don’t think that’s the right choice.” adding that: “What will be the most important is many teams will breach it and I think that will be simply bad for the financial regulations.”
Toto Wolff on the other hand, emphasized the inflationary issues plaguing the teams, saying that the cost cap should be adjusted, so that the extra allowance can be used for staff salaries and said that their freight and fuel costs are at an all-time high.
“I can tell you from my position as a team owner, I don’t want to lift the ceiling just to have a cost cap ever-increasing and basically outmanoeuvring the initial concept, but I want my people to be well paid especially in such tough circumstances.”
Jim Wright does not see any flaws with the budget cap regulations
Writing on The Race, Jim Wright criticised the teams ‘lobbying’ and felt that the teams signed up to race in accordance with the regulations of the sport – which includes the budget cap. After that, to ‘threaten’ a no-show (like Christian Horner did) is unprofessional.
“To hear comments from team principals threatening no shows from at least seven teams at the last four races because the cost cap is too low is disingenuous media lobbying and in my opinion, is thoroughly unprofessional.”
He agreed that the teams are facing ‘serious’ inflationary issues but said that all businesses in the world, which includes Formula 1 teams are currently under financial strain from the current economic situation.
“The FIA’s financial regulations have come into force, just as they have in many other professional sports, because of the necessity to try to maintain sporting integrity and a semblance of equality.”
“[The inflation issues and price hikes are] surely part of the management of an F1 operation or any other business for that matter.”
Formula 1 has shown no sign of budging on the issue of the cost cap, and this is likely to stay that way, as many other teams do not have an issue with managing the cost cap. The dynamic of the cost cap at the absolute top of the table will be interesting to see, with teams scrambling to comply with the regulations. One cannot predict how events will transpire from here, and even if Christian Horner’s ‘miss four races’ might actually come true.
Also Read: “It’s an issue for the FIA”: Christian Horner stays out of the discussion on the jewelry ban in F1
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Aniket Tripathi
(1002 Articles Published)