Formula 1 Racing

McLaren will exceed F1’s budget cap in 2022

Race start, Circuit de Barcelona-Catalunya, 2022

McLaren has become the latest team to confirm it will exceed the Formula 1 budget cap in 2022.

Team principal Andreas Seidl said rising costs outside of the team’s control relating to freight and energy will make it impossible for them not to exceed the maximum spending limit.

F1’s budget cap was introduced in 2021. It is set at $140 million (£113.17m) this year, excluding certain items such as drivers’ salaries.

However several teams have warned the sharp rise in inflation since the year began would make it difficult for them to stay within the spending limit. Ferrari team principal Mattia Binotto said in Monaco there was “no way” they could meet the limit.

Seidl told media including RaceFans in Baku today McLaren is in the same position.

“For us as a team that planned to run at the cap at the beginning of the year, with all these unexpected costs that came up we are at a position where we can’t make the cap anymore,” he said. “You have certain fixed costs in order to start the season, you have fixed costs with your resources which you have in place, the personnel and so on, which you can’t adjust any more.

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“With this unexpected huge increase of costs, mainly on the freight side and utility bills, we’re in the same position as some other teams, so we can’t make the cap this year.”

F1 previously announced it would not replace the cancelled Russian Grand Prix, reducing the number of rounds teams would have to attend, thereby cutting their freight costs. Teams are in discussion with F1 and the FIA on how else to alleviate the financial pressures they face in 2022.

“I’m still hopeful with all the conversations that are happening at the moment, together with the other teams with the FIA and Formula 1, that we still find a solution which is in the best interests of the sport moving forward,” said Seidl.

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He stressed…

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