FIA issues new directive: loophole in budget cap regulations closed

The FIA has stipulated that staff in other departments within the team - for example, developing a hypercar for Le Mans or producing a boat - can no longer be used for activities that affect the performance of the F1 cars. By booking staff costs on projects other than F1, teams were able to undercut the budget cap.

How does getting around the budget cap work?

Last week, it was revealed that Red Bull Racing, Ferrari, Mercedes and Aston Martin have been asked for clarification by the FIA. The motorsport federation wants to know if the teams are not circumventing the budget cap, by gaining relevant information for their Formula 1 branch through investing in other sports of the company. For example, Ferrari could get extra data through their Le Mans team, without it being part of the budget cap. Red Bull and Mercedes both invest in boat racing and Aston Martin, like Ferrari and Mercedes, builds road cars. Information about engines or aerodynamics could then come in handy when further developing Formula 1 cars.

The FIA reserves the right, the new directive says, to question team personnel about their activities and submit whether they have any impact on the F1 project. Incidentally, a Ferrari spokesman informed The Race: "As of today, 23rd June, there is nothing in the technical directive for us to address, and we do not know of any investigation."