Since the start of the season, there has been an ongoing debate among team leaders about budget constraints. This year, each team is entitled to spend no more than $140 million, but representatives of the top teams are pushing for an increase in this amount due to high inflation and rising costs for logistics and various types of materials.
Red Bull Racing head Christian Horner fears that if budget constraints are not lifted upwards in the near future, the fate of the championship title at the end of the year will be decided in court rather than on the tracks.
Christian Horner: “We see what is happening in the world right now, but we have no control over the inflationary costs affecting households around the world. In the UK alone we see an expected inflation of 11%.
Rising prices directly affect the costs of personnel, materials, electricity, payments to suppliers. I consider the situation to be force majeure and the FIA should intervene.
If this continues, it is likely that by the end of the year, 50% of the teams will exceed the budget cap. Maybe there will be more teams like this. We do not want the fate of the title in this case to be decided in court or at the FIA hearings in Paris. We have had six months to resolve this matter and we must act now.
At the moment, one possible solution for the leading teams is to lay off two to three hundred employees. Is it right? If budget constraints don’t work, we’ll never go back to them.
It is necessary to find a solution to the problem. During the pandemic, we agreed to cut the budget cap by $35 million, but then no one could have foreseen the problems we face now.
Source: F1 News
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