Look after the pennies…

Formula 1’s cost cap has really started to have an effect this season as teams battle with the challenge of designing and constantly developing a car for a whole new set of regulations. In principle, I am a believer in the cap, but I also have to admit that I was extremely sceptical of how effectively the FIA and Deloitte, who are the appointed auditing ‘police’ for the teams’ expenditure, would keep an eye on things.

The mandated budget cap for this season is $140 million (USD) for a 21-race calendar with an increase of $1.2 million for every race above that (Formula 1 has promised us 23 races this season). Now it would be far too simplistic in the world of F1 for the FIA to say, ‘That’s your budget, good luck’ and leave it to the teams to decide how to spend it. As per usual, once the regulations go to the teams the horse-trading begins with negotiations for exclusions, caveats and loopholes with the result that we end up with a 56-page document that’s riddled with complexities and open to interpretation.