The FIA has clarified that it has no plans to introduce a cost cap exemption for Ferrari in Formula 1, even after granting a similar exception to Audi.
Starting in 2026, the cost cap for F1 teams will increase from $135 million USD (approximately £108.1 million GBP) to $215 million USD (£172.2 million GBP). This adjustment reflects the added expenses associated with implementing new technical regulations and addressing global inflation.
Audi, set to enter F1 as a works team in partnership with Sauber, will operate out of the Hinwil factory in Switzerland, where the cost of living is significantly higher than in the UK. As a result, the FIA has approved an additional cost cap increase exclusively for Audi, a decision that has sparked discontent among the other nine teams.
This exception has raised questions about whether Ferrari, currently the only team based outside the UK (prior to Cadillac’s anticipated entry), might also receive a similar allowance. However, FIA single-seater director Nikolas Tombazis has outlined the reasons why the Maranello team will not be granted an adjustment under the revised cost cap rules.
Nikolas Tombazis explained to select media that the issue of salary disparities between teams is more nuanced, as it involves considering the challenges of recruiting personnel from other teams, including the higher costs associated with such moves. When asked directly whether Ferrari might receive an exemption, he emphasized that the focus should remain on countries with significantly higher labor costs, specifically citing Switzerland in the current context.
The racing car designer went on to illustrate his point with a metaphor, suggesting that in a “democracy” where there are nine wolves and one sheep, it becomes clear who holds the majority. While stressing the importance of fairness and consensus, Nikolas Tombazis acknowledged the difficulty of achieving the necessary level of team support for adjustments aimed at fairness within the highly competitive environment of Formula 1. He concluded by reiterating that ensuring fairness remains a fundamental responsibility for the FIA.
FIA Clarifies Decision on Ferrari Exemption
Nikolas Tombazis elaborated on how Formula 1’s governing body arrived at its decision to grant Audi an increased cost cap, emphasizing that the move was primarily driven by considerations of fairness toward the incoming team. He further assured that the FIA would maintain full transparency with the other teams, addressing concerns that any aspect of the process might be perceived as clandestine or unfair.
Nikolas Tombazis explained that the FIA recognized significant disparities in salaries and living costs across different countries, using his own experience living in Geneva as an example, where even routine supermarket visits highlight the issue.
He noted that under an equal cost cap, a team based in a high-labor-cost country like Switzerland would face a disadvantage, potentially having 30% to 40% fewer personnel working on the car. This imbalance, he stated, was fundamentally unfair.
From the FIA’s perspective, Nikolas Tombazis added, such a situation could render teams in high-cost regions unsustainable, forcing operations like Sauber to either relocate or cease operations altogether—an outcome the FIA deemed unsuitable for a global championship.
He outlined that adjustments to the financial regulations for 2026 would address this issue by factoring labor cost differences into the cost cap calculations. Nikolas Tombazis defended the change as entirely fair and emphasized that the FIA would increase transparency around the regulation to reassure teams concerned about potential underhanded practices. He expressed confidence that no reasonable doubts could be raised about the fairness of this approach.
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