In a meeting of the F1 Committee held this Friday (8), it was determined that the budget limit of US$ 140 million (approximately R$ 743 million at current exchange rates) will be increased by 3.1% for this season, in order to correct inflation
The teams at the front of the pack asked for it, and finally, they were answered. After the F1 Commission meeting held this Friday (8) before the start of the category's action in Austria, the FIA (International Automobile Federation) announced a 3.1% of the budget limit for inflationary correction - valid already for the 2022 season.
As part of the new Formula One technical regulations, the category had put in place a new spending cap for 2022: reduced to the amount of US$140 million (approximately R$743 million at current exchange rates), about US$5 million (close to R$26 million) less compared to 2021.
"The rapid increase in inflation rates since the end of 2021 has affected Formula 1 teams, and it is the opinion of the FIA and Fórmula 1 that this creates a risk of non-compliance with the financial regulations if action is not taken," said the statement issued by the category and the governing body.
"Following consultation with the Financial Advisory Committee in recent weeks, the FIA has submitted a proposal to the Commission - which was approved by the necessary majority, with the support of the FIA, Formula One and nine of the 10 teams. The proposal recognizes the unexpected increase in costs incurred by the teams in 2022, allowing indexation at a capped rate of 3.1% (which takes into account the original inflation cap of 3% already set in the regulations) and also allowing for compounding of that rate from 2023. This will preserve the long-term integrity of the financial regulation," the note added.
The decision comes after a series of requests from the top teams. Amidst an uncertain financial situation around the world following Russia's invasion of Ukraine in February, high levels of inflation, and rising freight costs, the decision comes after a series of requests from the top teams.s high levels of inflation, and rising freight costs, F1 teams have been pressing in recent months - through public statements - for an adjustment to the budget ceiling.
Present at the F1 Commission meeting were, in addition to the 10 team bosses, F1 boss Stefano Domenicali; FIA president Mohammed Ben Sulayem; and, finally, the category's technical director Ross Brawn.
With the determination, the original readjustment planned for 2023 is therefore brought forward to take effect this year.
GRANDE PRÊMIO follows LIVE and INREAL TIME all the activities of the Austrian GP weekend. Qualifying is scheduled for Friday at 12pm (GMT-3).