According to Motorsport Italy, Formula 1 officials and the FIA are ready to discuss potential budget cap rule changes with teams to help smaller teams catch up, starting with investments to close the technology gap for certain types of structures.
While the introduction of the cost cap from early 2021 is widely seen as a success in bringing the grid closer in terms of spending, there are some areas where its goal is deemed too restrictive.
While on the one hand it has contributed to not making it easier for larger teams to spend large amounts of money to obtain a huge advantage, on the other hand there are aspects that have prevented smaller teams from obtaining the desired gains.
One of the issues that has attracted the most attention in recent months is the fact that teams are severely limited in their capital expenditures, so there isn’t much room to improve the underlying infrastructure.
While teams may build new factories and a specific exemption has been granted in the cost cap rules for new wind tunnels, any other investment needed to improve equipment must be included in the generic cost cap limit that teams must respect.
This means that teams that had the best infrastructure at the start of the cap have a locked-in lead, while those whose investment has lagged behind face the prospect of having to take money away from the performance of the cars if they are to improve their facilities.
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It has emerged, however, that preliminary discussions have been started with the goal of giving the teams more freedom in terms of spending, so that they have the opportunity to improve the facilities of their factories.
According to Motorsport Italy, the matter was discussed at the latest meeting of the Formula 1 Commission, with Williams Team Principal James Vowles particularly keen to make rule changes in this area.
With a number of rivals supporting the basic idea, plus the FIA and FOM open to the prospect, it is understood that a more detailed analysis of potential changes to capital expenditure deductions is being prepared for further discussion in the next weeks.
Speaking on the matter, James Vowles said it was essential for the future health of Formula 1 that small teams have the means to improve their facilities if they are left behind.
“I personally think that if we want a meritocracy criteria, we have to give my team the chance to catch up with some of the big teams and have the same resources,” he explained.
James Vowles said one of the surprises he encountered upon joining Williams was the lack of a number of systems found in larger teams that cannot be upgraded without hitting the cost cap limit.
“There are some things that I consider fundamental, which are already present in other teams and have been for almost 15 years,” he said.
“For example, there are software systems that allow you to correctly figure out where all the pieces are, and they just don’t exist [at Williams]. Consequently, what impresses me is that before I arrived they built the car you see in front of you, 15,000 pieces that fit together, work and seem to run around the track quite quickly. It’s an incredible achievement. But it is clear that this is not how we can move forward. For this we need systems and structures.” – the Williams boss pointed out.
The idea of more freedom for capital expenditure would help smaller teams in particular, but larger teams would also be in favor, pending the final details.
For the rule change to be approved for 2024, six of the current teams need to support it – a level that seems possible to achieve. If eight teams back it up, the rules could change as early as this year.
Alpine director Otmar Szafnauer agreed that current capital spending limits are unfair.
“What the budget cap does is solidify some inherent inequities,” he said. If you’re a small team and don’t have a big wind tunnel, for example, and can’t build one, you’re forever screwed. That’s why there is an exemption for the new galleries. And I think there’s other infrastructure and tools under the gallery that should be treated the same way. Things like test benches, which big teams have and small teams don’t.”
“If you don’t allow this expense, the inequity remains forever. It means you are screwed forever and I think that’s wrong.” – Alpine director Otmar Szafnauer concluded.
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