And the American company Liberty Media, the owner of the commercial rights to the first category, and the Fédération Internationale de l’Automobile “FIA” said in a press statement that “following consulting with the Financial Advisory Committee during the past few weeks, the FIA submitted a proposal to the committee (Formula One) which was approved by the required majority, with the support of From FIA, Formula One and 9 teams (out of 10).”
The debate erupted in Paddock Formula 1 several weeks ago regarding whether or not to raise the spending ceiling in the face of inflation?
While the “big teams” Mercedes, Ferrari and Red Bull, which were particularly affected by the adoption of the budget cap system in 2020, have defended the measure, many teams such as Alpine or Alfa Romeo have stood once morest any modification.
Romanian-American Otmar Szafnauer, director of Albin, defended the decision to set the budget in May, saying: “When there is a will, there is a way. We have set a budget ceiling, and we must stick to it.”
However, the FIA decided to raise the budget ceiling by 3.1% in 2022.
“The proposal recognizes the unexpected increase in the costs incurred by the variance in 2022, allowing for indicators at a limited rate of 3.1% (which takes into account the initial inflation threshold of 3% already fixed in the system) and allowing for this rate to be capitalized from 2023,” the statement continued. .
The decision was taken to set maximum spending for teams during the season with the aim of reducing budget differences between large and small teams and improving competition.
The budget ceiling was also reduced from $145 million (regarding 142 million euros at current rates) last year to $140 million this year.
According to a preliminary decision, the budget ceiling will be 135 million in 2023, which is between two and three times what the Mercedes, Ferrari or Red Bull sheds spent before the law was issued.
