In 2021, Formula 1 introduced a budget cap that prohibits teams from spending more than the regulations allow. A regulation that brings hefty profits to the owners of the teams and an economic boom to Formula 1 as a whole – but which also has its critics.
One of them is Ralf Schumacher. The “Sky” expert basically welcomes the idea of capping the expenses of the large teams in particular and thus making the sporting competition more balanced if possible. However, he has his doubts as to whether the teams will not succeed in “hiding” parts of their expenses and circumventing the financial regulations.
“The budget cap issue is somehow bothering me more and more,” says Schumacher in an interview on the “Formel1.de” YouTube channel. You hear rumours, he says, “how many companies are being used somewhere to push some money somewhere that you can get around it”.
Formula 1: Small teams always at a disadvantage despite budget caps?
What he means by that: The larger teams in particular had to reduce staff in the course of the introduction of the budget limit in order to reduce their expenses. Some teams have founded so-called technology sister companies that deal with projects outside of Formula 1.
In the resulting company groups, there are now employees who only work part-time for the respective Formula 1 team and otherwise implement other projects. Only: Schumacher questions how exactly one can check whether an engineer does not also spend working hours on Formula 1.
He says: “I’m not at all sure whether Formula 1 shouldn’t be honest again and forego the topic, because it will remain the case that a Haas will probably never be able to raise that much money, unless the team will eventually be sold to another manufacturer.”
Ex-driver Schumacher expresses concerns
The budget limit caused a scandal at the end of 2021 when, according to the FIA, Red Bull could be proven to have violated the financial regulations of Formula 1. Red Bull was then fined $7 million and an additional handicap on wind tunnel and CFD resources.
That Formula 1 has become, at least in part, a World Cup for accountants and teams that have fallen behind in sport are now finding it particularly difficult to catch up because they may know the technical solutions, but are not allowed to invest enough money to To implement these is not in the interests of sport.
Schumacher thinks that Formula 1 “is the pinnacle of motorsport. I don’t know if what you’re trying to do is good in the long run,” he said in the interview, expressing doubts about the concept of the budget ceiling.