P1racenews AI automatic summary:
F1 is thriving but two insiders have claimed the introduction of the cost-cap really switched up the financial order.
Despite the initial popularity boost provided by Netflix’s Drive to Survive, F1’s commercial rights owners, Liberty Media, continue to thrive. Following their acquisition in 2017, F1 revenue skyrocketed to $617 million in the first quarter of 2026, a 53% increase from the same period in 2025, despite the recent unpopular regulations. However, the introduction of the cost cap has led to concerns about fair compensation for those working in the sport. The cost cap, implemented in 2021 to ensure financial stability and competitiveness, has changed the landscape by reining in unregulated spending that favored the wealthiest teams. Former F1 figures like Rob Smedley and Otmar Szafnauer have discussed how the cost cap has impacted remuneration, with top earners now being limited to a select few exempt individuals, leading to a disparity within the sport. The introduction of the cost cap has squeezed salaries in Formula 1, causing a shift in how compensation is distributed among team members and creating a noticeable divide between those exempt from the cap and the rest of the paddock.
