Formula One Increases Spending Cap By 3.1 Percent For All Team Due To Global Inflation

Formula One increased its spending cap for teams on Friday as they were allowed to spend 140 million dollars (about N84 billion) constituting about a 3.1 per cent rise.

The ruling body Fédération Internationale de l'Automobile (FIA), Formula One and nine of the 10 teams voted in favour of the rise.

It was not announced which team opposed the move at the F1 commission meeting.

Global inflation and the Russian invasion of Ukraine have led to rising prices in many aspects of the F1 business, especially in the transportation sector.

FIA said the approved proposal “recognises the unexpected increase of costs incurred by teams in 2022.

“This thereby permits indexation at a limited rate of 3.1 per cent (which takes into account the original three per cent inflation threshold already set out in the regulations.

“It also permits compounding of this rate as from 2023.

“This will preserve the long-term integrity of the Financial Regulations.”

The FIA also said that talks on F1 cars’ power units from 2026 onwards were “close to finalisation.”

More sustainable engines are to to run on sustainable fuel and 50 per cent of their power to be electric as F1 seeks to lure new constructors into the series, such as Germany’s Audi and Porsche.