Effects of the Budget Cap

[Everso Biggyballies]

Bottom post of the previous page:

Decent article on the budget cap from Autosport: https://www.msn.com/en-us/sports/more-s ... 7a07964c5b


7. By the way, is the budget cap in Euros or dollars? I gather dollars.

US Dorrah.

[Ruslan]

Decent article on the budget cap from Autosport: https://www.msn.com/en-us/sports/more-s ... 7a07964c5b


7. By the way, is the budget cap in Euros or dollars? I gather dollars.

US Dorrah.

Well, they are worth more than Euros right now.

[Ruslan]

Well, saw this article. It made a couple of statements that are worth considering: https://www.grandprix.com/news/no-alfa- ... asons.html

1. "When you look at the return on investment, Formula 1 is probably the most efficient marketing tool."

and

2. "The cost cap is a good tool for levelling costs and the return on investment, which is why Formula 1 is the best marketing tool in racing."

I never considered that the budget cap would help with marketing.

[Aty]

I think it was meant budget facilitates affordable marketing. Whether it is effective for every team is another matter. Budget however hasn't solve all issues, and forthcoming 2026 rule book makes Newey scratching his head.

[Everso Biggyballies]

I think it was meant budget facilitates affordable marketing. Whether it is effective for every team is another matter. Budget however hasn't solve all issues, and forthcoming 2026 rule book makes Newey scratching his head.

Marketing costs are outside the budget cap anyway.....

A list of other non cap big ticket costs, including:

Driver salaries
The wages of the three highest-paid staff members
Travel costs
Marketing spend
Property and legal costs
Entry and licence fees
Any non-F1 or road car activities
Parental and sick leave payments
Employee bonuses and staff medical benefits

Engines – (which are more complex because some teams make their own while others buy them ..... they are covered by their own set of cost regulations.)

[XcraigX]

I'll say it again. If there is a budget cap, any testing that the teams can fit under it should be allowed. Having a budget cap and a testing ban creates the single team dominance we have had for years.

[Ruslan]

I'll say it again. If there is a budget cap, any testing that the teams can fit under it should be allowed. Having a budget cap and a testing ban creates the single team dominance we have had for years.

Yea, I don't know why they still have testing restrictions. I gather the reason they put them in place was to save money. Under a budget cap, that is irrelevant.

[Aty]

I am all for track testing. From recollection, the Pista di Fiorano is conveniently owned by Ferrari for development and testing purposes. For the others it was more complicated, if my memory serves me. I think FiA was present, then chopper and medical standby, accident recovery services, facilties booking, etc. It costs a lot, but t was worth it (IMO). Teams should know at least 5 months before a season start how is new vehicle performing, and address what's needed. Those were good times.

[DoubleFart]

It's a little unfair however to say you can do testing unless you remove travel costs and circuit hire.

Otherwise it favours those like Ferrari who own their own circuit right next to the factory, or the British teams based next to Silverstone.

Sauber for instance would have a significant travel expense in comparison