Formula One Teams Maintain Cost Cap Compliance Amid Procedural Breaches

In 2023, all ten Formula One teams adhered to the cost cap for the second consecutive year. However, procedural breaches were noted for Alpine and Honda. Despite these breaches, neither team exceeded the financial limits. The FIA plans to resolve these issues via an Accepted Breach Agreement (ABA) involving fines.

In a noteworthy development for Formula One, all ten teams have successfully complied with the cost cap regulations for the second consecutive year in 2023, the governing FIA reported. This period marks the third consecutive season under stringent cost cap restrictions, which for 2023 capped team expenditures at $138.6 million.

Despite general compliance, Alpine and Honda, who are responsible for engine manufacturing, encountered procedural breaches. The FIA clarified that although these breaches were procedural, both companies stayed within the cost cap limits.

The FIA's Cost Cap Administration (CCA) intends to propose a settlement through an Accepted Breach Agreement (ABA), which would include fines rather than sporting penalties. This comes in light of similar historical settlements, such as Aston Martin's $450,000 fine in 2022. The FIA aims to finalize these matters, recognizing the complexities introduced by new financial regulations.

(With inputs from agencies.)