FIA confirm two teams BREACHED rules in official statement

An official cost cap announcement has been made by the FIA regarding the 2023 Formula 1 season.

The cost cap was first introduced in 2021 in an attempt to curb disparity between teams with more significant financial budgets and those without to encourage convergence between competitors and in turn, more exciting racing on track.

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

For the 2023 season, regulations for power united manufacturers were introduced to regulate cost of development and supply of the new generation of power units that will be introduced from 2026.

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Has an F1 team ever breached the cost cap?

Expenditure covered in the cost cap can include all elements to run the car and team personnel for example, but does not expenditure such as include 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 were hit with a $7m fine and a 10 percent reduction in aero testing for 2023 as punishment.

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 Alpine Racing SAS and Honda Racing Corporation (HRC).

"The CCA [Cost Cap Administration] confirms that although Alpine Racing SAS and HRC have both been found to be in procedural breach, neither have exceeded the Cost Cap level," read an FIA statement.

"Both Alpine Racing SAS and HRC have acted at all times in good faith and are currently co-operating with the CCA to finalise the matter.

"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 (ABA)."

The punishment for this type of breach varies, although so far historically it has been a financial hit.

Aston Martin were slapped with a £388,000 fine in 2021 for example, whilst Williams were fined £20,000 the same year for another procedural issue.

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