Cost Cap
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The Cost Cap is part of Formula 1 financial regulations designed to limit eligible team spending and reduce large financial disparities between competitors. Not every category of expenditure is included in the cap. Teams that breach the regulations can face sanctions depending on the nature and scale of the violation.
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Frequently asked questions
Does the F1 Cost Cap limit every dollar a team spends?
No. The Financial Regulations limit defined Relevant Costs rather than treating every team expense identically. Whether a cost is included or excluded is determined by the detailed Financial Regulations.
What happens if an F1 team breaches the Cost Cap?
The FIA Cost Cap Administration monitors and investigates compliance. A confirmed breach can lead to sanctions under the Financial Regulations, with the consequences depending on the nature and severity of the infringement.
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