F1 Increases Capital Expenditure for Bottom Teams by $20 Million
Formula One has implemented a significant financial boost for its four bottom-ranked teams, providing them with a $20 million increase in capital expenditure to enhance their competitiveness against better-equipped rivals. This adjustment, outlined by the governing FIA, raises the allocation from $45 million to $65 million for the teams of Williams, Haas, Alfa Romeo/Sauber, and AlphaTauri, and it will take effect in the 2024 season.
In contrast, the top three teams—Red Bull, Mercedes, and Ferrari—will receive a capital expenditure allowance of $51 million each, representing an additional $6 million. Teams in the middle bracket, including McLaren, Alpine, and Aston Martin, will have a budget of $58 million each, marking a $13 million increase from their previous allocation.
The decision to provide extra capital expenditure support to the lower-ranked teams was based on their championship standings in the 2020, 2021, and 2022 seasons. Teams like Williams had expressed concerns about the significant gap in infrastructure and facilities compared to their competitors, believing that it could not be closed solely through budget caps.
James Vowles, the team principal of Williams, welcomed the increased funding, stating, "We have CapEx to spend now, not perhaps the $100m I was looking for, but a good step in the right direction. We have an agreement on the table after six months that is sloped, so teams at the front will not get as much as teams at the back. We all benefit more, which is in line to a certain extent with the facilities." This financial adjustment aims to promote a more level playing field and enhance competition within the Formula One championship.