[Saba Sports News] As the new F1 season approaches, teams have received positive news with the cost cap benchmark being significantly increased from $135 million to $215 million. This increase is not about giving teams extra budget; rather, it primarily incorporates key costs previously excluded into the accounting scope. The main addition is the development and manufacturing costs of the power unit. Previously, these were either not counted or calculated separately. Now, they are included in the total budget alongside other performance-related expenditures like the chassis and aerodynamics.
Furthermore, due to global inflation in recent years, costs for raw materials, labor, and energy have all risen. This adjustment also includes an inflation compensation to ensure that teams’ real purchasing power does not decline, allowing them to operate normally.
From our perspective, the impact of this change will vary among teams. Manufacturer teams, which develop their own power units, will allocate a significant portion of their budget to this area. Even with substantial financial resources, they will need to budget carefully. Customer teams, while not needing to develop their own engines, still face considerable costs for purchasing them. This will tighten their budget for chassis development, requiring them to improve efficiency to catch up with the larger manufacturers.
Overall, this adjustment to the cost cap appears to be a rational one. It leaves room for technological innovation while maintaining the principle of fairness, potentially enabling more teams to participate in the sport over the long term.