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Budget cap in Formula 1 on the rocks: 'Will Christmas soon fall under it?'
- Ludo van Denderen
A change in the level of the budget cap for the 10 Formula 1 teams is likely for 2026. The proposal is to go to $215 or $220 million a year. That seems like an advantage for the richer teams, but on the other hand, more costs are going to fall under the budget cap. Christian Horner thinks so.
According to the Red Bul Racing team boss, setting for the budget cap is about finding the right balance. "I mean, I think there's been a huge amount of learning through the cost cap," said the Briton. "I think that what I think is the most important thing for 2026 is that the employees don't bear the brunt of those changes. So I think there's a sensible discussion about what's being included, what is to remain excluded and what actually is relevant to creating performance.."
Are Red Bull still celebrating Christmas?
In the first year of the budget cap, Red Bull learned that it also included catering. These were costs incurred by the Austrian team that caused the cap to be exceeded. This breach earned the team a hefty fine and less work was allowed in the wind tunnel. More such costs may soon fall under the budget cap.
"For example, does a Christmas party actually make your car go faster? Now, if that is to be included in the cap, of course, every technical director is going to want a front wing as opposed to a Christmas party, which is a bit tight. And so it's finding that balance. I'm not saying that our technical director doesn't like Christmas parties, but he likes front wings. So it's finding that kind of balance where the employees aren't the ones that bear the brunt of this," Horner said.
Still, he says: "By and large, it's been a very productive and sensible discussion. It's finding that balance between what are exclusions and what is included within that higher number."
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