Formula 1 discussing changes to cost cap Rules

Formula 1 is set to hold discussions with teams over potential changes to the cost cap rules in an effort to level the playing field for smaller squads.

According to Motorsport.com, there are some areas where the cost cap's scope is deemed too restrictive, leading to a call for changes.

Closing the Gap

Since the introduction of the cost cap in 2021, it has been widely regarded as having effectively closed the gap between teams.

Despite this, the limitations on capital expenditure have limited the ability of smaller teams to make improvements, hindering their efforts to catch up with their larger counterparts.

The current cost cap rules allow teams to build new factories and make specific exemptions for new wind tunnels, but any other investment needed to improve equipment must be included in the generic cost cap limit.

This has resulted in a locked-in advantage for teams with strong infrastructure at the start of the cap and a disadvantage for teams whose investment has fallen behind.

Greater Freedoms for Capital Expenditure

Preliminary discussions have taken place about teams being given greater freedoms in terms of capital expenditure to improve their facilities.

The matter was discussed at the most recent Formula 1 Commission meeting and is understood to have received support from a number of teams, the FIA, and the FOM.

A detailed analysis of potential changes is being prepared for further discussions in the coming weeks.

Williams team boss James Vowles is particularly keen on changes to the rules in this area and spoke about the matter.

Vowles believes that small teams need the means to improve their facilities if they have fallen behind, saying, "I personally think if we want a meritocracy, we need the ability for my team to be given the chance to catch up with some of the big teams and have the same resources."

Vowles also shared that Williams lacks some of the basic systems found at bigger squads and cannot upgrade them without eating into the yearly cost cap allowance.

He said, "For example, there are software systems that allow you to properly understand where all your parts are, and they simply don't exist [at Williams]. So we need systems in place and structures in place."

Bigger Squads Also in Favor

While the idea of more freedom for capital expenditure would benefit smaller teams the most, bigger squads are also understood to be in favor of it, pending the final details.

The possibility of changes to the cost cap rules in Formula 1 could come sooner than expected.

For a rule change to go through for 2024, it would require six of the current teams to back it, which appears to be a possibility.

If eight teams support it, the rules could change for this year.

Inequities Solidified by Cost Cap

Alpine team principal Otmar Szafnauer agrees that the current capital expenditure limits are unfair, saying, "What a cap ex cost cap does is it solidifies some inherent inequities."

He added that if a small team does not have a great wind tunnel and cannot build one, they are "screwed forever."

He believes that other infrastructure and tools, such as brake dynos and full car dynos, should be treated the same as new wind tunnels and that the expenditure should be allowed to remove the inequity.