Following the FIA’s re-evaluation of CapEx spending starting next year, AlphaTauri CEO Peter Bayer has voiced his concerns regarding the latest change to Formula 1 cost-cap regulations, stating the change is “not as pleasant as it might look.”
Bayer, the former Secretary General of the FIA, had a hand in developing the cost-cap regulations in his old role and is perhaps one of the best-informed team representatives within the paddock to comment on financial matters.
In the Qatar press conferences, Bayer, along with other team representatives were asked how they felt about the CapEx reform, which will grant teams toward the back end of the grid more funds than the heavy hitters to invest in new facilities and systems.
The bottom four teams of AlphaTauri, Haas, Alfa Romeo and Williams will be able to invest an extra $20 million compared to the extra $6 million afforded to Ferrari, Red Bull and Mercedes.
“Having been involved in the development of the cost cap, the idea was really to make sure that all the teams will either squeeze into a certain number or have a chance to actually hit that number,” Bayer began when probed on the CapEx subject.
Now, 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, or maybe or [inaudible],” he continued.
“It’s challenging, because you’re making a plan and you’re deciding on your investment and then suddenly, within six months, regulations change and you have to go back to your shareholders in my case, and that was not as pleasant as it might look.
“No, but we’ll deal with it.”
It’s all very well and good being afforded the opportunity to spend more on team facilities, but if the funds aren’t there, then it becomes an extra strain on a team with a tighter budget, like AlphaTauri.
“I think the first question to ask really is do we do we have the money?,” he told Autosport.
“Because we haven’t forecasted any of that money when we went to meet the shareholders for the budget planning.”
Williams Team Principal James Vowles was a big pusher for increasing CapEx spending and Alfa Romeo is prepping for a takeover from Audi, so it is understood that both of these teams will be able to meet the new financial demands put in place via this latest regulation change.
“For us, it’s a lot harder, definitely,” he added. And at the same time, if you’re looking at the top teams, it might not be fair either.
“Because I remember when I saw the numbers in the initial cost cap phase, I saw the real budgets of Ferrari and Red Bull and all of them. And literally we didn’t understand how they will actually squeeze all that money into a cap.
“And they managed to do it. And now things are changing again. I’m not so happy about the whole situation.”
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