Given that the cost of running Formula 1 teams has greatly increased due to global inflation, McLaren team principal Andreas Seidl has stated that the team may “considerably” exceed the budget cap for this season.
Given the fast shifting nature of the world economy and the sharp rise in inflation that has occurred as a result, the $140 million cap was widely viewed as being too low for the majority of the teams on the grid. As a result, budgets for teams have become even more constrained.
Since then, the teams have agreed, in a recent F1 Commission meeting, to a 3.1 percent increase in spending allowance to be taken for the remainder of the season, as well as a proposed increase on the $135 million cap for next year, given that the calendar is likely to expand to 24 races in 2023, though a specific amount has not yet been decided.
Christian Horner, the owner of the Red Bull team, thinks that the cap increase is still insufficient for the majority of teams to stay within the spending cap for the year. Horner has long been outspoken about his belief that the Formula 1 budget should be increased to prevent a “catastrophe,” in which teams miss races to fall under the cap.
The McLaren team manager acknowledged that most teams will probably exceed the budget cap at the current rate, but he went into greater detail about how much more expensive it has gotten to operate specific teams departments during the season.
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According to Seidl, six or seven teams would go over the limit, according to Motorsport-Total in Austria. Which would have the effect that, depending on how high this excess is, it would be a breach of the laws, and there would have been commensurate consequences.
When asked how much McLaren would exceed the cap, he responded, “I don’t want to offer a figure, but considerable.”
“Because there have been astronomically large, unexpected cost rises that are unrelated to typical inflation. Particularly in regards to freight or even electrical expenses, which weren’t anticipated in that way.
About 80% of what we’re talking about is freight. around 200 percent electricity. Although not exactly correct, that is the order of magnitude. As a result, your team only has a limited number of levers outside of your fixed costs with which you may react in order to essentially compete a season, start the season, and have the necessary spare components – fully independent of any developments or accident damages that may potentially occur. Additionally, the ability to counteract at this level of leverage is simply exhausted.
At the halfway point of the season, McLaren and Alpine are tied for fourth place in the Constructors’ Championship with 81 points each.