FIA confirms all 10 F1 teams met 2022 cost cap

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Following the last European race of the 2023 F1 season, Formula One's governing body, the FIA has announced that all ten teams have been found to be in compliance with the 2022 F1 cost cap regulations.

Formula One introduced a revolutionary cost cap in 2021. The original plan was to introduce a maximum amount of $175m in the first year, but the Covid-19 pandemic urged the sport to lower that financial ceiling down to $145s. Formula One then wanted to reduce the amount by $5m per season for the 2022 and 2023 which meant the teams have to complete the current season with a budget of $135m.

The cost cap applies to most salaries, car development costs and race weekends, including transport, but does not apply to the cost of buying in an engine, for customer teams, or developing a power unit for factory teams.

There are further expenditures that do not fall under the cost cap, including driver salaries, the wages of the three highest-paid staff members, marketing spend, property and legal costs, entry and license fees, parental and sick leave payments and employee bonuses.

Last year, the FIA found Red Bull guilty of a "minor" overspend of the 2021 $145m budget, while Verstappen was wrapping up the 2022 title. As a result of the $2.2m overspend, Red Bull received a $7m fine plus a 10 per cent reduction to their wind tunnel time for this season.

The Paris-based governing body has now confirmed all of the grid's 10 teams have been awarded compliance certificates after sticking to last season's budget cap.

FIA's statement read: “The FIA confirms that its Cost Cap Administration has now completed the review of the Reporting Documentation submitted by each Competitor that participated in the 2022 FIA Formula One World Championship in respect of the 2022 Full Year Reporting Period ending on 31 December 2022.

“The FIA Cost Cap Administration has issued certificates of compliance to all of the ten Competitors.

“The review has been an intensive and thorough process, beginning with a detailed analysis of the documentation submitted by the competitors. Additionally, there has been an extensive check of any non-F1 activities undertaken by the teams, which comprised multiple on-site visits to team facilities and careful auditing procedures to assess compliance with the Financial Regulations. The FIA Cost Cap Administration notes that all Competitors acted at all times in a spirit of good faith and cooperation throughout the process.

“The FIA also notes that the Financial Regulations are essential to the long-term financial stability of the sport, and that they will continue to be developed and refined based on the findings of each review process both in terms of the regulations themselves, which are written and approved under the FIA Formula 1 governance process, and the way in which they are enforced and policed. The FIA has made and will continue to make significant investments in this department for the collective benefit of the sport."