FIA set to close F1 cost cap loophole with new rules

Teams will have to clearly separate their F1 and non-F1 staff from next season onwards

The FIA’s World Motor Sport Council has approved new regulations to prevent teams’ non-F1 staff from working on Formula 1 projects.

F1's governing body has likely intervened because some had managed to take advantage of staff and facilities officially allocated to other activities to bypass the budget cap.

This decision will prevent an imbalance between teams with other activities and those with no other programmes other than grand prix racing, but will also radically alter the way F1 squads operate. Those who are an integral part of automotive giants will have to function entirely independently of their parent companies.

The aim of the five new articles in the 2027 operational regulations is clear: to close a loophole which allows for an already limited transfer of know-how between the F1 team and the company’s other business units, therefore concealing spending within programmes such as product development, WEC, Formula E or sailing.

Until now, it was possible to split an engineer’s expertise between two different activities, declaring which part of his role was dedicated to F1 and which to the other programme, attributing only a percentage to the budget cap.

The FIA is now going much further by genuinely separating F1 from all other activities, with significant restrictions being imposed on the use of technological assets (simulators, wind tunnels, test benches, data centres, IT systems).

These new segregation measures mean non-F1 staff will be barred from entering the F1 factory and those working on grand prix activities won’t be allowed to visit colleagues in other divisions.

The transfer of staff from F1 to another sector can no longer be direct, requiring a new contract detailing their new duties; their company badge and email will be disabled. An employee who leaves the team won’t be able to return until at least one year has passed.

If those working on non-F1 programmes are to switch to the F1 squad, they will also have to undergo a three-month gardening period during which they will not be allowed to engage in any company activities.

The new rule is expected to lead to an increase in staff numbers and costs, as those managing non-F1 programmes turn to external candidates and peripheral projects forgo synergies and opportunities for collaboration.

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- The Autosport.com Team

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