F1 To Raise Teams’ Budget Cap As Inflation Bites

F1 To Raise Teams’ Budget Cap As Inflation Bites

File photo from Monaco GP© AFP

Formula One has extended new budget constraints to enable teams to better deal with global inflation. The International Motoring Federation (FIA) introduced a 14 145 million limit last year and reduced it to 140 140 million this season as part of a new-age package The goal is to make racing closer. But rising costs, especially in aviation, have prompted teams to take action. On Friday, the F1 Commission reached an agreement with a majority of the 10 teams on the grid at a meeting in Spielberg before qualifying for the Austrian Grand Prix sprint race.

“Rising inflation rates since the end of 2021 have affected Formula 1 teams, and it is the opinion of the FIA ​​and Formula 1 that if action is not taken, there is a risk of non-compliance with fiscal regulations.” In a statement from the game. The ruling FIA announced.

The statement continued: “In consultation with the Financial Advisory Committee in recent weeks, the FIA ​​Commission brought a proposal (to increase the budget threshold to 3.1% in 2022) which was approved by the required majority with the support of the FIA.” Gone, 1 and 9 of the Formula One teams. “

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