F1 team chiefs share their thoughts on solving the capex situation, particularly in the bottom half of the grid.
Amidst discussions regarding the Concorde Agreement and the 2026 F1 regulations, important discussions regarding capital investment are also taking place. The discussion centered on the team’s spending on operational activities at the base related to infrastructure.
However, after nearly a year of discussion, their appeal failed to gain early support. However, recently the FIA and F1 Commission have made a breakthrough. He divided the 10 teams into three divisions of 3-3-4.
This is based on the results of the 2020, 2021 and 2022 seasons, with Red Bull, Mercedes and Ferrari at the top, followed by McLaren, Alpine and Aston Martin, with the bottom four being Alfa Romeo and Williams respectively. , AlphaTauri and Haas.
The compromise will increase capital expenditure for all three divisions, but the larger share will fall on the bottom four F1 teams. The first three team increases in 2024 will be his $51 million, up from his aforementioned $45 million to his $6 million increase.
The next four companies will receive an increase of $13 million to $58 million, and the bottom four companies will receive an increase of $20 million to $65 million. However, this only applies in 2024. This is because capital investment will decline in each of the three sectors from 2025 to 2028.
The first three will receive $42 million, the next three will receive $49 million, and the last four will receive $56 million. We plan to use a fixed amount from 2028 onwards. Although there is a solution, the reaction to the 2024 increase remains mixed among F1 teams.
Very few people said that –
James Vowles: “Well, first of all, there is at least one good news from my point of view as far as capital expenditures, thanks to the good work with all the teams. We were able to unlock the exception.” We also received 20 million favors. I’m glad you were able to find a solution. It will definitely be very helpful when you start your journey. Therefore, there has been agreement and good discussions since February. One reason your bills can go up so much is because you have to spend on capital equipment. Probably not the $100 I was looking for, but a good step in the right direction.
“Even more important than what I just said is that the team begins to work together and becomes more cohesive. After six months, an agreement was reached on the tilted table. Therefore, the team at the front You don’t get as much benefit as the teams at the back. Those that are more or less in line with the equipment have more benefit. That’s part of it. The second part is that Williams needs to make a lot of changes. I’ve said this very clearly and openly. Part of that is certainly capital investment. Part of it is organizational growth and organizational change, and part of it is website growth. So when you add it all up, you end up with a very large number on the table. ”
Andrea Stella: “Well, first of all, I would like to note that it was a positive process in which the team and the institution that led this process managed to reach an agreement .This is good news for us. We’re going to take advantage of the additional budget, and I think it’s good for us.”
Peter Beyer: “Yes, actually I agree with Fred. We were involved in developing the cost cap, so all the teams It was important to narrow it down to a number or make sure we actually had a chance of hitting that number.Now we have an inflation adjustment in OpEx and more increases in CapEx, which is basically a good thing But at the moment we don’t have the money, so we have to try to find funding and sponsorship.We make a plan and decide to invest, then suddenly within six months the regulations change and in my case I have to go to the shareholders. This is a big deal because I have to go, but it’s probably not as fun as you can imagine. No, but I’ll deal with it. But that’s probably just my opinion. ”
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