Christian Horner has called for urgent discussions about the Formula 1 budget cap due to the financial impact of global events.
Costs are escalating at all levels of society due to rising inflation and energy prices – a situation that was occurring even before recent events in eastern Europe.
F1’s budget cap for the 2022 season is $140million, a $5million drop from last year, while in 2023 it will be reduced again to $135million.
Teams have had to cut their cloth accordingly, which unfortunately has led to job cuts at some of the 10 constructors – and Red Bull boss Horner, who opposed an increase to six sprints this year for cost reasons, believes the pressure will only increase in the efforts to remain within the sport’s financial constraints.
“What you have to remember is when the budget cap was set back in the midst of the pandemic, in the middle of 2020, nobody could have foreseen the circumstances we have in the world today,” said the Red Bull team principal during a press conference at the official test in Bahrain.
“What we see going on in the world will only drive prices one way.
“Inflation looks like it could hit record levels. We are seeing that impact already on things like air freight just to this event.
“I think it’s a very serious problem that we need to look at and address because this has a one-to-one impact on people’s jobs and livelihoods.”
Horner has therefore called for the FIA and Formula 1 to assess the budget cap at the earliest opportunity with a view to alleviating the financial strain he feels teams are coming under.
“It’s the duty of the regulator to look at this with a degree of urgency to make sure the relief is put in place to take into account what’s going on in the world with the cost of living increases we will all see,” added Horner.
Andreas Seidl, his equivalent at McLaren, was in agreement and said it was simply a matter of common sense.
“It’s always important to apply common sense and with these additional challenges that came up in the last weeks and months in terms of inflation and so on, I think it’s important to simply have a discussion about it,” said the German.
“We are absolutely up for that discussion, open also to solutions or potential adjustments as long as everything is happening within reason.”
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