From Motorsport · Franco Nugnes · · 1m
FIA closes F1 cost cap loophole
FIA mandates strict staff separation to prevent F1 teams from hiding costs in non-racing activities.
In brief
FIA mandates strict staff separation to prevent F1 teams from hiding costs in non-racing activities. FIA requires F1 teams to fully separate staff from non-F1 operations starting 2027 to close budget loopholes. Originally reported by Motorsport.
FIA approves new rule
The FIA’s World Motor Sport Council has approved new regulations to prevent teams’ non-F1 staff from working on Formula 1 projects.
Why the rule exists
The federation likely intervened because some teams had managed to take advantage of staff and facilities officially allocated to other activities to bypass the budget cap.
Key changes to operations
Teams must now clearly separate F1 and non-F1 staff, with non-F1 staff barred from entering F1 factories and F1 staff barred from visiting other divisions.
Staff transfer restrictions
Employees switching between F1 and non-F1 programs must undergo a three-month gardening period before rejoining the team.
Expected consequences
The new rule will increase staff numbers and costs as teams turn to external candidates and forgo synergies with non-racing programs.
The key point
FIA requires F1 teams to fully separate staff from non-F1 operations starting 2027 to close budget loopholes.
