We are only in the second race from a 23-event Formula 1 calendar and there is already the need to tackle very important issues for the stability of a championship that could not have started in a better way. The Bahrain Grand Prix gave the first indications that the new ground effect cars can lead to more exciting racing.
Sakhir’s appointment confirmed that the cars can stay closer together without suffering a serious loss of downforce, although overtaking is not as simple as it might seem on paper. If from a technical point of view the indications seem positive, there are other aspects such as the financial one that create some concern.
The topic was discussed by the president and CEO of Formula 1, Stefano Domenicali, who in the interview with Motorsport.com had emphasized some aspects of the Budget Cap …
“There are two ongoing discussions this front. The first is that of control, because if the person who has to verify the costs misses something, the whole system collapses. Today it is not enough to check only the technical front, but also a strict financial control is needed, and for this reason the International Federation is gearing up to be even more robust in its role as guarantor”.
Then the former Ferrari boss opened up on another important topic:
“The second point relates to some variables that were difficult to predict at the time of the launch of the financial regulation. Inflation is going in an unpredictable direction, and transport costs in recent weeks have also risen in a way that is difficult to predict. There will be discussions to find the right solutions, always keeping at the center the principle that everyone must be guaranteed the same availability ”.
The issue is deeply felt, especially by the top teams who have planned development of the single-seaters according to the expected economic availability of 140 million euros.
Inflation is galloping: according to ISTAT (The Italian National Institute of Statistics) in February in Italy there was an increase of 0.9% on a monthly basis and of 5.7% on an annual basis (from + 4.8% in the previous month), which had not been registered since November 1995.
Scuderia Ferrari team principal Mattia Binotto is also worried …
“Inflation is weighing on all of us and is limiting the possibilities for development. We will have to think and discuss between all the teams, the FIA and Formula 1 on how adjust the budget cap limit at least for the value of inflation to allow a little more space and freedom for development. As long as this is not done, we are all blocked by the Financial Regulation. We too, as Ferrari, are aware of this: we need to be able to adjust the value of inflation, but not too much “.
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Obviously, the phenomenon spreads unevenly in the various economies and, in addition to reducing the purchasing power of the teams, it can also lead to differences in the spending allowed by creating inequalities that can impact on the results on the track.
The issue is very delicate, because if the richer teams try to use this very concrete argument to enlarge the budget caps, the smaller teams will try to maintain the status quo. If the value of inflation certified by ISTAT of 5.7% on an annual basis is considered valid, we are talking about an availability of more than almost 8 million euros.
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