Mercedes boss Toto Wolff believes that McLaren would have been challenged more during the 2025 Formula 1 season without a cost cap in place.
The FIA and FOM introduced a limit on spending at the beginning of the 2021 campaign after some harsh lessons learned in the turbo-hybrid era.
With the engine and chassis regulations turning out to be expensive and complex, teams with a higher spending capacity, like Mercedes, ruled the sport.
In fact, the German marque dominated the grid between 2014 and 2021, winning eight consecutive Constructors’ titles.
With the budget cap in place, all 10 teams were restricted to a maximum outlay of $145 million initially, with this figure reduced to $135 million from 2023 onwards.
Wolff believes that this has allowed financially smaller teams like McLaren to close up to the “usual suspects” like Mercedes, Ferrari and Red Bull.
“You know, we were pretty conscious when the budget cap came – not only for the commercial side of things, but also to have a more level-playing field among the teams, and not just the usual suspects that were outspending each other,” he told media including Motorsport Week.
Mercedes especially has struggled with its concept in the ground effects era. After initially misjudging its design philosophy with the ‘zero-pods’ concept, the Brackley-based team hasn’t really been able to make any meaningful leaps in terms of rectifying these gremlins – substantially being held back by the budget cap limiting its development prowess.
Before the cost cap, however, the top three teams spent anywhere between $400-500 million a season.
With a similar spending capacity in the ground effects era, Wolff surmised Mercedes could have clawed back enough performance to dislodged a relatively handicapped McLaren.
“So, would we have been able to buy ourselves out? Look at Red Bull or Ferrari, they have the same financial opportunities or possibilities that we have,” he explained.
“So, it would have again ended up in an arms race. And maybe it wouldn’t have been McLaren fighting there with us on top.
“This is just a meritocracy. Best man in best machine wins. And it wasn’t us.”

Norris highlights ‘favourable’ F1 rule underscoring McLaren success
Norris secured his maiden F1 championship by a slender margin of only two points over Max Verstappen in Abu Dhabi last weekend.
This also wrapped up a season that has seen the Woking-based team pick up back-to-back Constructors’ titles for the first time since 1991.
The Briton conceded that while it had the legs over its rivals in terms of development, it was made possible because of the incumbent cost cap and development regulations restricting the other teams on the grid.
“Another Constructors’ [title] feels the same as the first because to get the first was quite an achievement if you still look at where we were just three years ago,” he said in October.
“We’ve overtaken every team in terms of development. We’ve outdone them by a long way in terms of development.
“And in a time when it’s almost harder to do than ever – with more restrictions, less wind tunnel time, all of those different things, budget cap – that’s probably been more in our favour over the last five years compared to the budget that the other teams could run at.”
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