Scuderia Ferrari team principal Frederic Vasseur has called for quicker and stricter action for future cost cap breaches in Formula 1, following the controversy surrounding Red Bull Racing in 2022.
The FIA Cost Cap regulations were first announced as part of the provisional rule changes for 2021. While the Technical Regulations were pushed back to 2022 due to the COVID-19 pandemic, the Financial Regulations remained.
The cap was set at $175 million for the 2021 season and then reduced to $147.4 million on May 27, 2020. This cap doesn’t include marketing costs, race driver fees and the costs of the teams’ three highest-paid personnel.
Reports of a breach in Cost Cap rules came to light in early October and the FIA announced on October 10 that two teams have breached the Financial Regulations for 2021. The announcement came one day after Max Verstappen sealed the World Drivers’ Championship in Japan.
While talks began between the FIA and Red Bull over the Cost Cap breach, it was announced on October 23 that they were put on hold following the death of Red Bull co-founder Dietrich Mateschitz. Five days later, the FIA revealed that Red Bull entered into an Accepted Breach Agreement (ABA), which meant they had to pay $7 million to the FIA within 30 days of the date of execution of the ABA. The team also received a 10% reduction in allocated restricted Wind Tunnel Testing and CFD (Computational Fluid Dynamics) limits.
The FIA also stated that Aston Martin were fined $450,000 for a procedural breach of the Cost Cap.
Speaking to Motorsport during his time with Alfa Romeo, Vasseur called the cost cap “by far the best regulation” to be introduced into F1 and called for the governing body to act quicker on any future breaches. The Ferrari boss said:
“Where we have to work today, firstly, it was far too long. We need to find a way to have a red light before, or to be able to take action much earlier. And we have to probably be a bit more strict on the decision. OK, perhaps this was the first one, but from now we have to forget about minor and major. “Because for me, two or three million, it’s not minor, it’s mega, for development. I think we have to be much more strict and much more quick on the action.” Mattia Binotto previously had some of the strongest opinions on RB’s cost cap breach and although typically reserved in his comments he stood out as a very vocal supporter of it. Seems like Fred is successfully picking up the baton. #F1 #FIAMattia Binotto previously had some of the strongest opinions on RB’s cost cap breach and although typically reserved in his comments he stood out as a very vocal supporter of it picking up the baton #F1 #FIA
Vasseur, who replaced Mattia Binotto as Ferrari’s team principal, praised Federico Lodi, FIA’s head of financial regulations, and his team for overseeing the first year of the cost cap. He stated:
“I would say the cost cap administration and Federico Lodi did a mega job. We don’t have to forget it.”
The FIA Cost Cap for 2022 stands at $142.4 million. While it further reduces to $135 million from 2023 to 2025, there is room for adjustment depending on inflation.
Ferrari take massive financial hit heading into 2023 F1 season
Ferrari are staring at a massive financial hit heading into the 2023 Formula 1 season as they are parting ways with Velas and Snapdragon, two of their biggest sponsors.
The Maranello-based outfit has dropped crypto partner Velas, who signed a multi-year deal with the team in 2021, and semiconductor company Snapdragon.
The Velas deal was reportedly worth $30 million, while the Snapdragon deal was worth $25 million — meaning Ferrari is looking at a combined $55 million loss.
Interestingly, both sponsors who are leaving Ferrari are connected in some way to Mercedes. #F1 twitter.com/Racingnews365C…
#F1 #F1News #F12023
buff.ly/3jH6o1H
Ferrari faces $55 million hole after loss of sponsors 
The team has made a split with two premium partners and could see legal action by the parties RacingNews365 has learned. #F1 #F1News #F12023buff.ly/3jH6o1HInterestingly, both sponsors who are leaving Ferrari are connected in some way to Mercedes. #F1 twitter.com/Racingnews365C…
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Edited by Sudeshna Banerjee
