Following a “thorough and intensive review” of Reporting Documentation submitted to its Cost Cap Administration (CCA) for the 2023 FIA Formula One World Championship, motorsport’s governing body, the Fédération Internationale de l’Automobile (FIA), has announced all 10 Formula One (F1) teams were found to have complied with financial regulations.
The Financial Regulations for F1 Teams, commonly referred to as the “Cost Cap” was introduced in 2021 to limit teams’ spending in the Championship thereby, improving equity within the sport and subsequently, encouraging its long-term viability.
In 2023, Financial Regulations for PU Manufacturers were introduced, thereby requiring the submission of Reporting Documentation to the CCA by each Power Unit (PU) Manufacturer competing in the 2023 Championship which had expressed their intention “to supply the new generation of PU” to be introduced from 2026 onwards. Following the review process, all 4 PU Manufacturers were found to have complied with financial regulations. However, two PU Manufacturers – Alpine Racing SAS and Honda Racing Corporation (HRC) – were found to have committed unspecified procedural breaches. Despite this, the CCA stated that both manufacturers had acted “in good faith” at all times and were cooperating with the CCA to finalise the matter.
“The CCA confirms that although Alpine Racing SAS and HRC have both been found to be in Procedural Breach, neither have exceeded the Cost Cap level.
“Both Alpine Racing SAS and HRC have acted at all times in good faith and are currently cooperating with the CCA to finalise the matter.”
The CCA has stated that, due to the nature of the breach and the complexities and challenges associated with the implementation of the new regulations, they intend to settle the two manufacturers’ respective breaches through an Accepted Breach Agreement (ABA) which would result in both manufacturers being fined, rather than any significant sporting penalty being imposed on their associated teams or drivers.
“Considering the nature of the breach, the complexities of the new Financial Regulations for PU Manufacturers and the challenges associated with their first year of implementation it is the CCA’s intention to propose to these two PU Manufacturers to settle their respective breaches by means of an Accepted Breach Agreement (ABA).”
If accepted by Alpine Racing SAS and HRC, a summary of the respective ABAs will be published once finalised. If no agreement can be reached, the respective cases can be referred to the Cost Cap Adjudication Panel, which comprises a panel of 12 judges elected by the FIA General Assembly in accordance with relevant FIA statutes.
