FIA issue official F1 statement as MULTIPLE breaches confirmed

The FIA have issued an official F1 cost cap announcement for the 2023 season and have confirmed two breaches.

F1 introduced the cost cap in 2021 to curb disparity between teams with more significant financial budgets and those without, and encourage convergence between competitors.

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The cost cap limits the amount a team can spend over the course of a calendar year to avoid spiralling costs, with the cap reduced to $140 million in 2022 with further reductions to $135 million for 2023 until 2025.

For the 2023 season, power unit manufacturers also had regulations to contend with to control the cost of the new generation of power units that will be introduced from 2026.

FIA confirm cost cap breaches

Expenditure covered in the cost cap can include all elements needed to run the car and team personnel, but does not address expenditure such as drivers’ salaries, marketing spend or any parental/sick leave for staff members.

Red Bull were found guilty of a ‘minor’ overspend of the 2021 $145m budget, and the team received a $7m fine and a 10% reduction in aero testing for 2023.

The FIA have confirmed that all 10 teams were found to be in compliance with the 2023 cost cap, however Procedural Breaches were identified for power unit manufacturers Alpine Racing SAS and Honda Racing Corporation (HRC).

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According to the report neither exceeded the cost cap level and both manufacturers have ‘acted at all times in good faith and are currently cooperating with the CCA to finalise the matter’.

The report continues: "Considering the nature of the breach, the complexities of the new Financial Regulations for PU Manufacturers and the challenges associated with their first year of implementation it is the CCA’s intention to propose to these two PU Manufacturers to settle their respective breaches by means of an Accepted Breach Agreement."

The Accepted Breach Agreement in question here will see the FIA hand out a sanction that is agreed upon by Honda and Alpine.

Penalties for these matters are financial, not sporting, unless external factors make it necessary to increase the punishment.

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