P1racenews AI automatic summary:
The F1 cost cap has come back into focus in 2025
The F1 cost cap was introduced to encourage a more competitive championship by setting financial regulations for 2021.
The cap aims to level the playing field by limiting spending and enabling smaller teams with fewer resources to compete against bigger budget teams.
Teams were known to spend upwards of $400m per season, prompting the need for financial restrictions to ensure a sustainable sport.
The 2021 budget cap was initially set at $175m but was reduced to $140m for 2022 and planned to decrease to $135m by 2023.
Expenditures under the cap include all car parts, running essentials, team personnel, and transport costs, among other items.
Spending on F1 driver salaries, marketing, travel, and certain staff wages are not included in the cost cap.
Red Bull was fined $7m and faced reduced aero testing for overspending the 2021 budget, while Honda and Alpine were fined for procedural breaches regarding the engine cap.
