Stefano Domenicali's argument on Cost Cap

Not everyone agrees with the Cost Cap move…

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. The basis of the argument was that, amidst growing concern over the unequal opportunities or conditions for Formula One teams and drivers, Formula One saw it fitting to introduce the budget cap to accommodate all teams and enable them to participate in the Grand Prix race series. However, “old Formula One people”, as Stefano calls them, have not accepted the budget with the same notion.

The budget cap for the 2021 edition of the race series was $145 million and was expected to decrease over the next seasons. Stefano alluded to the fact that the budget cap, however, did not have a great reception, especially from those who are older and are still adamant that archaic ways still serve the best dish. According to Stefano Domenicali, the purpose of the change was to provide an opportunity for more teams to participate in the championship, without being held back by financial or resource constraints. 

In a move that would in turn help improve the spirit of competition amongst drivers and teams altogether, Formula One fanatics who began with F1 since its inception, do not support the idea. Domenicali further argued that the introduction of the budget cap was necessary to ensure that the race series became a fair play for all parties involved.  In his direct words, “We added the financial rules and made it the most complicated one in terms of policing because the physicality is different from country to country, the complexity of the details of teams that are part of a manufacturer, and then there are other entities that are building up to create some resources for the team”.

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Regardless of Formula One’s popularity, which has grown tremendously, with the number of sprint races increasing to six, some people still feel that the budget cap is not going anywhere. During October 2021, the Red Bull Racing Team surpassed the budget cap, resulting in a penalty of $7 million and a reduction of 10% in both their race and driving time for 2022.

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