The FIA has announced that all 10 Formula 1 teams were compliant with the series’ budget cap regulation through the 2023 season, despite two procedural breaches.
The cost cap, which limited sides’ spending to $135 million in the last campaign, was in its third term of operation, having debuted in 2021 with a limit of $145 million.
Red Bull was discovered to have breached the regulation in 2021, earning the champions a $7m fine and a 10% reduction in wind tunnel time across the 2022 season.
However, all the incumbent sides adhered to the restriction in 2022 and the Cost Cap Administration’s (CCA) “thorough” process has led to the same outcome in 2023.
The FIA has reported, though, that the CCA identified that 2026 power unit manufacturers Alpine and Honda Racing Corporation both committed procedural breaches.
Last season marked the first time that engine suppliers’ spending has been monitored ahead of the impending wholesale regulation overhaul that is dropping in 2026.
But the CCA has specified that neither exceeded the cost cap, citing that “both acted at all times in good faith and are cooperating with the CCA to finalise the matter.”
Due to this and the “complexities of the new Financial Regulations for PU Manufacturers”, the CCA has recommended both settle for an Accepted Breach Agreement.
Should Alpine and Honda elect to cohere to that advice and take an ABA, a summary of the punishment will be “finalised as provided for by the Financial Regulations”.
The FIA’s report on the Cost Cap Administration’s (CCA) financial findings from the 2023 F1 season
The FIA confirms that its Cost Cap Administration (CCA) has now completed its review of the Reporting Documentation in respect of the Reporting Period that ended on 31 December 2023, submitted by each F1 Team that participated in the 2023 FIA Formula One World Championship and by each Power Unit (PU) Manufacturer registered to supply the new generation of PU that will be introduced from 2026.
2023 is the third year of implementation of the Financial Regulations for F1 Teams and the first year of implementation of the Financial Regulations for PU Manufacturers.
The review of the Reporting Documentation was a thorough and intensive process spanning five months with all F1 Teams and all PU Manufacturers giving their full support in providing the required information. The CCA notes that all F1 Teams and all PU Manufacturers acted at all times in a spirit of good faith and co-operation throughout the process.
The review findings are as follows:
F1 Team review process results:
All 10 F1 Teams found in compliance for 2023.
PU Manufacturer review process results:
4 PU Manufacturers found in compliance for 2023, and Procedural Breaches identified for Alpine Racing SAS and Honda Racing Corporation (HRC).
The CCA confirms that although Alpine Racing SAS and HRC have both been found to be in Procedural Breach, neither have exceeded the Cost Cap level. Both Alpine Racing SAS and HRC have acted at all times in good faith and are currently cooperating with the CCA to finalise the matter.
Considering the nature of the breach, the complexities of the new Financial Regulations for PU Manufacturers and the challenges associated with their first year of implementation it is the CCA’s intention to propose to these two PU Manufacturers to settle their respective breaches by means of an Accepted Breach Agreement (ABA).
A summary of the ABAs, if accepted by these two PU Manufacturers, will be published once finalised as provided for by the Financial Regulations.
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