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Motorsport Week
Home Single Seater Formula E

FIA and Formula E approve budget cap regulations

by Ryan Wood
4 years ago
A A
FIA and Formula E approve budget cap regulations

Alexander Sims (GBR), Mahindra Racing, Mahindra M7Electro, leads the field

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Formula E and the FIA have approved plans to introduce a set of financial regulations that will govern the Formula E World Championship from late next year.

The new financial regulations come into force from 1 October next year and will align with the championship’s technical and sporting regulations. Two sets of financial regulations will be introduced, one for Formula E teams and another for Formula E manufacturers.

The teams financial regulations are comprehensive with limited exclusions, mainly for costs clearly linked to the commercial growth of the championship.

The spending level for Seasons 9 and 10 will be set at €13 million per season with certain transitional exclusions to address existing contractual commitments.

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From Season 11, the spending level will increase to €15 million per season inclusive of driver costs and other costs associated with the second phase of the Gen3 car, facilitating continued investment in talent and development.

A second set of rules will apply to manufacturers, taking into account the requirement for investment in research and development related to powertrain development.

Manufacturers will operate within a spending level of €25 million over two consecutive seasons starting from Season 9. This includes R&D costs, manufacturing activities and ongoing mandatory services to support Formula E teams.

“Over the past 18 months, we have worked closely with FIA and all participants in the ABB FIA Formula E World Championship to create a regulatory framework that will underpin the long-term financial sustainability for all participants in Formula E,” said series boss Jamie Reigle.

“When combined with recent enhancements to our technical regulations and sporting format, this financial system will strengthen Formula E’s value proposition. In partnership with the FIA, we have created a framework which places long-term financial success at the core the championship – supporting our existing teams and manufacturers while attracting new competitors and investment.

“The financial regulations are designed to complement our ambitious technical roadmap and enable manufacturers in Formula E to showcase the potential for electric vehicles in the most demanding racing conditions: the ABB FIA Formula E World Championship.

“The shift to electric vehicles is accelerating and Formula E’s Gen3 car will set the standard for performance and efficiency. There is no turning back.”

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