F1 To Raise Teams' Budget Cap As Inflation Bites

Formula One has raised the new budget cap restrictions to enable teams to cope better with global inflation. The International Motoring Federation (FIA) introduced a limit of $145 million last year and trimmed it to $140m this season as part of the sport's new era package aimed at creating closer racing. But due to increased costs, especially in air freight, action was called for by teams. On Friday, the F1 Commission came to an agreement with a majority of the 10 teams on the grid at a meeting in Spielberg ahead of qualifying for the Austrian Grand Prix sprint race.

"Rapidly increasing inflation rates since the end of 2021 have affected Formula 1 teams, and it is the opinion of the FIA and Formula 1 that this creates a risk of noncompliance with the financial regulations if actions are not taken," a statement by the sport's ruling body the FIA announced.

The statement continued: "Following consultation with the Financial Advisory Committee over recent weeks, the FIA brought a proposal (to raise the budget cap by 3.1 percent in 2022) to the Commission that was approved by the required majority with support from the FIA, Formula 1 and nine of the teams."