Leveling the Playing Field: FIA's Cost Cap Adjustment for Audi

Formula One's governing body has adjusted the cost cap structure to consider higher wages in Switzerland, benefiting Audi as they prepare to launch with Sauber in 2026. The decision aims to address wage disparity across countries, ensuring fair competition without forcing teams like Sauber to relocate.

Formula One's governing body, the FIA, has taken a significant step to provide a fair competitive landscape for 2026 entrants Audi by adjusting the cost cap system. The new regulations are designed to address the higher wages faced by teams operating in Switzerland, ensuring parity with their counterparts in other countries.

Audi is set to transform Sauber, a Swiss-based team headquartered near Zurich, into their works team as Formula One evolves into a new engine era. With the cost cap set at $215 million for 2026, including various new financial regulations, the adjustment acknowledges Switzerland's substantially higher wage levels compared to other countries.

The salary disparity outlined by the Organisation for Economic Co-operation and Development (OECD) data showed a significant gap in average wages. This gap prompted the FIA to act, as revealed by Nikolas Tombazis, the FIA's head of single seaters. Tombazis noted that without adjustments, Swiss-based teams such as Sauber would face an unjust reduction in workforce size unless the regulations accounted for these higher costs.

(With inputs from agencies.)