The FIA has redefined CapEx spending for all 10 teams on the Formula 1 grid on a sliding scale to favour sides towards the bottom of the standings.
CapEx spending allows teams to invest in systems and infrastructure and has long been a key point of concern for Williams Team Principal James Vowles.
Vowles had argued that due to Williams’ lack of investment before the introduction of the Cost Cap in 2021, the team’s shortfalls in infrastructure compared to the bigger teams of the grid were effectively locked in – preventing them from gaining ground in this regard.
Now though, reports confirm that the FIA has made a raft of changes to the CapEx spending regulations.
The FIA has introduced a league table system to CapEx spending, split into three groups, based on teams’ Constructors’ results across 2020, 2021 and 2022.
Speaking in the Qatar Team representative press conference, Vowles called the reform “good news.”
For 2024, gone is the original $45 million CapEx combined spending limit across 2021, ’22, ’23 and ’24, with all 10 teams seeing an increase.
The biggest gain in CapEx spending is going to the bottom tier of teams, namely Haas, Alfa Romeo, AlphaTauri and Williams, who have received a $20 million spending increase to $65 million.
The middle tier of McLaren, Alpine and Aston Martin has seen a $13 million increase to $58 million, with the top tier teams of Red Bull, Mercedes and Ferrari receiving a $6 million boost, taking their respective CapEx spending limits to $51 million.
For the subsequent four-year bracket of CapEx spending across 2025, 2026, 2027 and 2028, the limits go down for each group.
The top tier will drop to $42 million, the middle tier to $49 million and the bottom tier to $56 million.
From 2029 onwards the tier system is set to be wiped out, with a fixed CapEx spend across the paddock set to $36 million.
(L to R): James Vowles (GBR) Williams Racing Team Principal; Andrea Stella (ITA) McLaren Team Principal; Frederic Vasseur (FRA) Ferrari Team Principal; and Peter Bayer, AlphaTauri Chief Executive Officer, in the FIA Press Conference. 06.10.2023 Formula 1 World Championship, Rd 18, Qatar Grand Prix, Doha, Qatar, Qualifying Day. – www.xpbimages.com, EMail: requests@xpbimages.com © Copyright: XPB Images
“Not perhaps the 100 I was looking for but a good step in the right direction,” said Vowles, who will hope to use the coming years to gain ground on Williams’ rivals.
“I’m pleased we got there with a resolution and it will help me tremendously in the start of our journey anyway.”
Ferrari Team Principal Fred Vasseur isn’t convinced the change is a positive one, however.
“I think that we opened the door a couple of times to change into the cost cap regulation and this is very dangerous,” he said.
“It’s not because the business is going well today that we have to change everything and to come back to the previous situation.
“And I think we are taking every single opportunity to break everything and this is dangerous.”
“I agree with Fred actually,” said AlphaTauri CEO Peter Bayer.
“On the OpEx we’re having inflation indexation, on the CapEx we have another increase and whilst in principle it’s nice, but currently we don’t have the money, so I have to try and find the money, the sponsorship.”
McLaren Team Principal Andrea Stella meanwhile, joined Vowles in voicing his support for the CapEx spending reform.
“First of all I would remark it was a positive process, where teams and the institutions that led the process managed to find an agreement,” he said.
“For us, this is welcome news.
“We’re going to use the extra allowance and so I think that’s a good thing for us.”
As ever, each team has its agenda when it comes to rules and regulations and this is no less relevant when it comes to spending regulations.
Time will tell whether this latest development will help the smaller teams on the grid fight further forward, or whether, as in the case of AlphaTauri, cause further issues.
Discussion about this post