F1’s top teams have already had to cut back on spending this year with the budget cap limit reduced by $5 million to $140 million.
But their finances are facing extra pressure caused by a dramatic upswing in inflation and spending that has been triggered by the ongoing fallout of the coronavirus pandemic and the Ukraine war.
That not only means costs on things like transport and electricity will jump massively, but there is pressure too to increase staff wages to keep them in line with true living expenses.
When F1’s cost cap was laid out, the world’s economy was in a much better shape and inflation was nowhere near where it is now – which is why there is little leeway in the regulations to help cope with the difficulties teams are facing.
Red Bull team boss Christian Horner says the matter needs some urgent response.
“I think it’s a very real problem because we’re already seeing extremely high inflation,” said Horner.
“We have to remember that when the budget cap…
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