Cost caps and bamboo cars...
After the 2020 season, most fans would be wishing that things were just ‘normal’. That nothing changed and the world calmed down a bit.
Cue the regulation changes...
Whilst on the face of it nothing had drastically changed, there are a few rules which have been tweaked in order to sustain fair competition among teams and promote eco-friendly practice. Three in particular have caught my eye.
The Cost Cap
‘Cost cap’ definition: a cap (limit) in the amount of money a Formula 1 team can spend in one year.
This is a landmark regulation, which effects all teams. The cost cap being introduced in 2021 will limit team’s costs to $145 million. Not only has it been introduced in 2021, but in 2022 it will decrease to $140million and to $135million in 2023. This gradual reduction allows the bigger teams to slowly adapt to the cap. The teams are also allow to carry over their 2020 chassis, making further cuts in the first year of the cap.
The aim of the cap is to allow for a more competitive championship and to promote a more level playing field between teams. Previously, teams have been able to spend as much as they want, which was unfair on the smaller teams since they don’t have the funding.
In order to be regulated, a ‘Cost Cap Administration’ will be created to ensure the teams comply to the new regulations. In 2020, F1 ran a ‘dummy’ run of this cap, but because of the chaos caused by Covid-19, it was hard for teams to really understand if this cap is manageable.
Should teams go over the cap, there are 3 levels of breach of regulations:
‘Procedural breach’ – this may be is the team submits their accounts late
‘Minor overspend breach’- when the cap is exceeded by 5%
‘Material overspend breach’ – over 5%
Penalties include a financial penalty, deduction of points, or exclusion from the World Championship. It'll be interesting to see the true impact of this cost cap in seasons to come.
No Copy Cats
Despite the 2020 chassis’ being carried into 2021, there are now regulations in place to stop teams essentially stealing each-others ideas. Since the suggestion of Racing Point RP20 having very similar looking parts to the Mercedes W11, the FIA have cracked down on ‘copying’ that was at the forefront of debate last year.
Teams are now allowed to look or use “standard observation” to look at other cars’ parts, but they cannot create deals with one another to have access to this information on these components.
The Wooden Car?
Whilst it’s doubtful we’ll be seeing a bamboo car rock up on the front row of the grid, the new regulation permitting teams to use different ‘green’ materials is a welcomed one. F1's contribution to the environment has bene at the forefront of teams' minds. For a few years now, and with teams having another chance on showcase their eco-friendly ways, it will be interesting to see who does what.
All these changes aim to make to draw the field closer together and reduce the economic and environmental toll. Whether they work remains to be seen.
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