F1 News: All 10 F1 teams adhered to 2023 FIA Cost Cap limits

The FIA has announced that all 10 F1 teams adhered to the cost cap regulations for the 2023 season.

–by Mark Cipolloni–

Among the power unit manufacturers, Alpine and Honda were deemed to have made procedural breaches, though they did not go over the cost cap.

The Financial Regulations for F1 Teams were introduced in the FIA Formula One World Championship from the 2021 season, following unanimous approval of the F1 Teams. The intention of the Financial Regulations for F1 Teams is to limit spending in the Championship to ensure the long-term viability of the Championship and encourage convergence in performance between Competitors, thus creating more exciting racing.

For the 2023 season, the Financial Regulations for PU Manufacturers were introduced to regulate cost of development and supply of the new generation of Power Units that will be introduced from 2026.

FIA Press Release

The FIA confirms that its Cost Cap Administration (CCA) has now completed its review of the Reporting Documentation in respect of the Reporting Period that ended on 31 December 2023, submitted by each F1 Team that participated in the 2023 FIA Formula One World Championship and by each Power Unit (PU) Manufacturer registered to supply the new generation of PU that will be introduced from 2026.

2023 is the third year of implementation of the Financial Regulations for F1 Teams and the first year of implementation of the Financial Regulations for PU Manufacturers.

The review of the Reporting Documentation was a thorough and intensive process spanning five months with all F1 Teams and all PU Manufacturers giving their full support in providing the required information. The CCA notes that all F1 Teams and all PU Manufacturers acted at all times in a spirit of good faith and co-operation throughout the process.

The review findings are as follows:

F1 Team review process results:

All 10 F1 Teams found in compliance for 2023.

PU Manufacturer review process results:

4 PU Manufacturers found in compliance for 2023, and Procedural Breaches identified for Alpine Racing SAS and Honda Racing Corporation (HRC).
The CCA confirms that although Alpine Racing SAS and HRC have both been found to be in Procedural Breach, neither have exceeded the Cost Cap level. Both Alpine Racing SAS and HRC have acted at all times in good faith and are currently cooperating with the CCA to finalize the matter.
Considering the nature of the breach, the complexities of the new Financial Regulations for PU Manufacturers and the challenges associated with their first year of implementation it is the CCA’s intention to propose to these two PU Manufacturers to settle their respective breaches by means of an Accepted Breach Agreement (ABA).
A summary of the ABAs, if accepted by these two PU Manufacturers, will be published once finalized as provided for by the Financial Regulations.