P1racenews AI automatic summary:
The FIA’s Single-Seater Financial Regulations Director Federico Lodi spoke exclusively to RacingNews365.
The FIA’s director of financial regulations for single-seater racing has detailed the adjustments made to Formula 1’s cost cap, revealing that it will be raised to $215 million in 2026.
Since its introduction in 2021 at $145 million, the cost cap has gradually reduced, reaching $135 million from 2023 to 2025 with adjustments for global inflation affecting the ten teams across the UK, Italy, and Switzerland.
A key change for 2026 is the significant increase in the cost cap to $215 million (£159.6 million) to accommodate new regulations and higher associated costs, including salary differences, particularly for Audi joining F1 for the first time.
While certain exceptions like driver salaries will still apply, the FIA’s approach to setting the cap considers accumulated inflation and bringing previously excluded costs within the cap’s scope.
The complexity of drafting rules amidst diverse team interests necessitates concessions and compromises, as the FIA works to secure consensus and support for the cost cap proposal.
