FIA Confirms 2023 Compliance After Rigorous Financial Review
Sep.11 - The FIA has confirmed that the Cost Cap Administration (CCA) has concluded its review of the financial submissions from all Formula 1 teams and Power Unit (PU) manufacturers for the 2023 season. This review covered the financial period ending December 31, 2023, and included reports from every F1 team competing in the 2023 World Championship, along with PU manufacturers preparing to supply the new-generation power units set to debut in 2026.
This marks the third consecutive year that F1 teams have been subject to the Financial Regulations, and the first year that PU manufacturers have been included under these guidelines.
The process of reviewing these financial submissions was extensive and detailed, lasting five months. The CCA reports that all F1 teams and PU manufacturers cooperated fully, working in good faith throughout the process.
2023 Review Results for F1 Teams:
- All 10 participating F1 teams were found to be in compliance with the 2023 Financial Regulations.
2023 Review Results for PU Manufacturers:
- Four PU manufacturers were found to comply with the 2023 regulations. However, procedural breaches were identified for Alpine Racing SAS and Honda Racing Corporation (HRC).
Despite these procedural infractions, both Alpine and HRC remained within the cost cap. The CCA acknowledged their cooperation in addressing these issues and emphasized that neither party acted in bad faith.
Given the complexity of the new regulations for PU manufacturers and the fact that this was their first year of implementation, the CCA intends to propose an Accepted Breach Agreement (ABA) to both Alpine and HRC as a way to resolve these breaches. If accepted, the details of these ABAs will be made public in accordance with the regulations.
Background on Financial Regulations:
The Financial Regulations for F1 teams were introduced in the 2021 season, with the goal of capping spending to ensure the long-term sustainability of the sport and promoting closer competition. In 2023, similar regulations were applied to PU manufacturers to control development and supply costs for the upcoming generation of power units set to be introduced in 2026.
The CCA is tasked with overseeing compliance with these financial regulations, investigating any potential non-compliance, and taking appropriate action when necessary. In cases of procedural breaches or minor overspends, the CCA can enter into settlement agreements like the ABA. However, if the breach is deemed more serious, cases can be referred to the Cost Cap Adjudication Panel for further action.
Penalties for breaching the cost cap vary depending on the severity. Minor overspend breaches (less than 5% over the cap) can lead to financial penalties or minor sporting penalties. More significant breaches (over 5% of the cap) result in mandatory deductions of Constructors’ Championship points and may also incur additional financial or sporting penalties.
For more details, you can read the full Financial Regulations for F1 teams and PU Manufacturers here.
✅ Check out more posts with related topics:
