F1 Raises Cost Cap To Match Record-Breaking Season

F1 have changed the cost cap rules ahead of the 2023 season.

F1 have confirmed an increase to the cost cap to accommodate for the record-breaking number of races in the 2023 season.

In 2023, the F1 teams will face a new financial goal to achieve, as the F1 Commission has given the green light to modifications to the cost cap.

In response to the increase in the number of races, Formula 1 has confirmed that a section of the cost cap will be revised.

As part of several changes endorsed by the F1 Commission, teams will now have an increased budget to work with.

The new cost cap rules entail an increase in spending limit per race, from $1.2m to $1.8m, for every race held after the 21st event. This adjustment is aimed at accommodating the "expensive" flyaway races, and the "trend of the additional races being added to the calendar".

With a 23-race calendar slated for this year, the total increase in the cost cap amounts to $1.2m.

Several teams have cited the cost cap as a hindrance to their development efforts towards the end of 2022. In the 2021 season, only Red Bull was found guilty of overspending, while Aston Martin had committed smaller violations.

In addition to the changes to the cost cap, the F1 Commission has also sanctioned amendments to certain sections of the Financial Regulations. The objective is to simplify the auditing process.

Moreover, a mandatory winter shutdown for competitors and power unit manufacturers, akin to the existing summer shutdown, has been agreed upon.