Former F1 Team Boss Otmar Szafnauer Criticizes Cost Cap Measures in Formula 1

Former Formula 1 team boss Otmar Szafnauer has spoken out against the sport’s cost cap measures, highlighting what he sees as inherent “inequities” in the current system.

Introduced in 2021, the cost cap limits teams on the grid to a budget of $145 million, with the goal of leveling the playing field and bringing teams closer together. However, Szafnauer believes that some teams have found ways to exploit the system, giving them an advantage over others.

Speaking at the launch event of his new itinerary management app EventR, Szafnauer pointed out that some teams have been able to structure their costs in a way that allows them to spend $10-15 million more than their competitors. This extra spending power, he argues, can make a significant difference in terms of performance, allowing teams to hire more talent or conduct experiments that others cannot afford.

Szafnauer also raised concerns about the CapEx side of the cost cap, suggesting that it has inadvertently frozen inequities in place. He noted that larger teams already had access to certain tools and resources before the cost cap was implemented, giving them a head start over smaller teams who are now playing catch-up.

The former Alpine and Aston Martin boss shared his own experiences of facing these challenges, recalling how his team had to make strategic decisions about what to purchase and when due to budget constraints. In contrast, he observed that larger teams with more financial resources were able to stock up on equipment before the cost cap came into effect.

Szafnauer’s comments shed light on the complexities and challenges of implementing a cost cap in Formula 1, raising questions about how effective the current measures are in achieving their intended goals of promoting fairness and competitiveness in the sport.