Toto Wolff wants teams to find a middle ground on the F1 budget cap
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Toto Wolff
The stance of the top three teams on the grid is clear: Ferrari, Mercedes, and Red Bull – all want the budget cap to either be increased or be dispensed with entirely. Others are less enthusiastic about dispensing with it, like Haas, Alfa Romeo, and Alpine.
The ‘big’ teams argue that the current inflation and increased transportation and freight costs mean the teams should be given more of an allocation than the $140 million that has been agreed upon. Christian Horner even said that teams may have to miss races in order to meet the budget cap.
According to PlanetF1, Wolff said that the energy costs in their base in Brackley have almost tripled in size, and this is why Wolff is seeking an ‘adjustment’ between the teams.
“I think what we can demonstrate is very easy, our energy costs in Brackley have gone up from £2.5m to £6.5m, our freight costs in a similar way, I think it’s two to six. Black and white, you can follow that on the accounts, look at it in the P&L [profit and loss].”
On the other hand, the ‘midfield’ teams argue that this is part of financial management in an F1 season and that the budget cap should stay where it is. As every business in the world is facing these issues, they do not feel Formula 1 teams should be exempt from it. Their other argument is the budget cap will make Formula 1 competitive.
By limiting the spending of the more financially well-off teams, F1 wants all teams to be competitive with each other and not for one or two teams to completely run away with it, and that is why it has enforced the budget cap upon the grid. Toto Wolff has argued that the increased allocation of the budget cap should be used for salaries, which will be accounted for in team finances.
Toto Wolff: “I want my people to be well paid, especially in such tough circumstances.”
According to Wolff, the aim of increasing the cost cap is not to entirely circumnavigate the mechanic and render it useless, but to help staff members behind the scenes. Most of the teams are based in the United Kingdom, where there has been a rise in inflation and the cost of living. The general feeling is that the rise in salaries is not enough to account for the huge inflation.
As quoted by Motorsport, Wolff said: “It’s not that we want to generate more profit, it’s literally allowing people to have their salaries compensated for the extraordinary inflation they are suffering from.”
He tried to assure the ‘smaller’ teams that the big teams are not trying to ‘screw’ them and that their position on the budget cap is a big stumbling block toward staff being properly compensated for their work (keeping in mind the inflation).
“I think the worst for the sport is having a stubborn position that some of the smaller teams think that the big ones are trying to gain an advantage and we’re actually going to screw them by not allowing them to do this and us on the other side seeking to lift the ceiling, which we don’t want to do.”
According to Wolff, the situation at the beginning of the season compared to now is very different, and he wants the teams to acknowledge that, and try to come together to find a solution that is satisfactory for all parties involved.
“And 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 outmaneuvering the initial concept, but I want my people to be well paid, especially in such tough circumstances.”
The inflation and rising costs did not apply only to the UK teams, as Maranello-based Ferrari are also suffering from rising costs. Mattia Binotto thinks that all major teams will be breaching the budget cap this year.
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Aniket Tripathi
(1002 Articles Published)