Home International FIA enforces new rule to close F1 cost cap loophole

FIA enforces new rule to close F1 cost cap loophole

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The FIA’s World Motor Sport Council has approved new regulations to prevent teams’ non-F1 staff from working on Formula 1 projects.

The federation has likely intervened because some had managed to take advantage staff and facilities officially allocated to other activities to bypass the budget cap.

The decision will prevent an imbalance between teams with other activities and those with no other programmes other than grand prix racing, but will also radically alter the way F1 teams operate. Those who are an integral part of automotive giants will have to function entirely independently of their parent companies.

The aim of the five new articles in the 2027 operational regulations is clear: to close a loophole which allows for an already limited transfer of know-how between the F1 team and the company’s other business units, therefore concealing spending within non-racing programmes such as product development, WEC, Formula E or sailing.

Until now, it was possible to split an engineer’s expertise between two different activities, declaring which part of his role was dedicated to F1 and which to the other programme, attributing only a percentage to the budget cap.

The FIA is now going much further by genuinely separating F1 from all other activities, with significant restrictions being imposed on the use of technological assets (simulators, wind tunnels, test benches, data centres, IT systems).

Meccanici McLaren in pit lane

Foto di: Pauline Ballet – Formula 1

The new segregation measures mean non-F1 staff will be barred from entering the F1 factory and those working on grand prix activities won’t be allowed to visit colleagues in other divisions.

The transfer of staff from F1 to another sector can no longer be direct, requiring a new contract detailing their new duties; their company badge and email will be disabled. Furthermore, an employee who leaves the team won’t be able to return until at least one year has passed.

Interestingly, if those working on non-F1 programmes are to switch to the F1 squad, will also have to undergo a three-month gardening period during which they will not be allowed to engage in any company activities. The F1 team is therefore destined to become a ‘fortress’ within the brand’s premises.

The new rule is expected to lead to an increase in staff numbers and costs, as those managing non-F1 programmes turn to external candidates and peripheral projects forgo synergies and opportunities for collaboration.

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Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: motorsport.com