Is The Formula 1 Cost Cap ACTUALLY Working?

Since the Formula 1 Cost Cap was introduced in 2021, it has been a major talking point in the F1 world of money. And there are still questions concerning if the Formula 1 cost cap is actually working... The main aim of the F1 cost cap is to level the F1 teams out a bit in terms of money, but is that actually working? Or is it just a useless exercise? Well, in this video I'll be diving into the details of the F1 cost cap and work out if it could actually work and if we are seeing an impact after just under two seasons. And trust me, I was pretty shocked at what I found...
Make sure to follow my personal Instagram account for channel updates and much more! ⬇️
/ theracingluke
0:00 Introduction
0:56 What is the cost cap?
2:29 Financials of the cost cap
3:27 What's included and excluded in the cost cap?
4:53 How is it regulated?
6:35 Is the cost cap actually working?
9:29 The future of the F1 cost cap
10:16 Conclusion
_________________________________________
FOLLOW OUR SOCIAL CHANNELS:
Instagram: / theracingpilot
Twitter: / theracingpilot
Pinterest: www.pinterest.co.uk/the_racin...
DRIVETRIBE: drivetribe.com/u/K0N1iR8OEtTL...
Facebook: / theracingpilot
_________________________________________
MUSIC INFO
Good Morning by Amine Maxwell / aminemaxwell Creative Commons - Attribution 3.0 Unported - CC BY 3.0 Free Download / Stream: bit.ly/2vpruoY Music promoted by Audio Library • Good morning - Amine M...
Fluffy by Smith The Mister smiththemister.bandcamp.com
Smith The Mister bit.ly/Smith-The-Mister-YT
Free Download / Stream: bit.ly/stm-fluffy
Music promoted by Audio Library • Fluffy - Smith The Mis...
Free Range by Mona Wonderlick / monawonderlick Creative Commons - Attribution 3.0 Unported - CC BY 3.0 Free Download / Stream: bit.ly/-free-range Music promoted by Audio Library • Free Range - Mona Wond...
Anything by Soyb & Amine Maxwell / soybmusic / aminemaxwell Creative Commons - Attribution 3.0 Unported - CC BY 3.0 Free Download / Stream: bit.ly/-anything Music promoted by Audio Library • Anything - Soyb & Amin...
Finally by Loxbeats / loxbeats
Creative Commons - Attribution 3.0 Unported - CC BY 3.0
Free Download: bit.ly/FinallyLoxbeats
Music promoted by Audio Library • Finally - Loxbeats (No...
_________________________________________
Under Section 107 of the Copyright Act 1976, allowance is made for "fair use" for purposes such as criticism, comment, news reporting, teaching, scholarship, and research. Fair use is a use permitted by copyright statute that might otherwise be infringing. There are certain scenes from the Formula 1 calendar where race footage is used. All rights are property of FOM. Other photos and news elements are used solely for the purpose of assisting the original content in becoming more engaging or informative. This video is not intended to cause offence and is solely for entertainment purposes. Using this video without giving credit to the original source is an offence.
#F1Money #CostCap #Formula1

[@VykronianF1]

This vid is brilliant, and dummy informative! But the cost cap will never be truly effective if rules are skirted bc “it’ll cost too much to do so.” A prime example is Alfa getting to the weight limit but the rest complaining that they can’t bc material costs. So instead of Alfa benefiting bc they budgeted and developed smartly; they’re punished for doing a better job

[@TheRacingPilot]

Exactly, there needs to be a much stricter format in place that doesn't allow rules to be skirted

[@yordanofp]

Simple to understand, easy to follow, very informative and presented video, good job mate. I agree, a higher costs cap including more things, instead of half of them, could ve more effective

[@TheRacingPilot]

Thanks mate, really appreciate it! 🙌

[@Struggle.Snuggles]

Great video and very simplistic answers to a common question in F1. Got a new subscriber.

[@TheRacingPilot]

Awesome! Thanks so much for watching 🙌

[@mranti9836]

I love you bro Am watching all your f1 videos and all I can say is they are absolutely epic Even your eloquence is spot on 👍🏿

[@TheRacingPilot]

Thanks so much! That's really nice of you to say 🙌

[@formularguments7335]

Great video man. Explained it so clearly

[@TheRacingPilot]

Thanks a lot mate! 🙌

[@FXCartel]

Love your content just wish it was longer cos I can't get enough of. It

[@TheRacingPilot]

Hahaha thanks so much! Got more videos coming soon 🙌

[@AnthonySmith-nn4cr]

Damn dude your learned me about the teams finding loopholes i didnt even think they were doing that, why these videos roxk

[@TheRacingPilot]

Well thanks for watching mate! 🙌🙌

[@zubairmalik7952]

Hi, Thank you for the informative video. Really helpful to get an insight into the regulations and impact of the cost cap on F1. Would it be possible for you to share the information sources, specifically in places where you have used numbers? I am writing an essay on the topic and would really appreciate it. Thank you.

[@TheRacingPilot]

Quite a lot of it was from the actual document from the FIA which is available online by searching 'fia financial regulations', then I used a variety of other sources such as The Race and Autosport 👍

[@aaen8443]

So if I understand this right, for the mid to low teams nothing really changed and the top teams still have more money, but looking at your chart then the top 3 still operate with 150-200 mil less than they did in 2019 right? If that's the case then it seems at least it's had SOME effect, granted not enough though

[@TheRacingPilot]

Well not quite, in reality the top three teams only really have a reduced budget of maybe $20 million or so. This is because the cap only affects half their budgets anyway. So when you factor in the cap into half their budget, it's not all that much they have to reduce by 👍

[@aaen8443]

@@TheRacingPilot thanks for relying and clarifying, the two charts put up vs each other give a "positive" perspective but I'm glad to get my misunderstanding cleared up 👍 keep up the awesome videos

[@StephenParsey]

First thing added as soon as the cost cap was proposed? Somebody literally working on how to skirt the cost cap rules! 😂

[@TheRacingPilot]

Yes, absolutely hahahah

[@ericbema8420]

Just yesterday fia announced that red bull had overspent. And people on the internet are saying they overspent it due to sick leave and catering... But according to your video, non of those are under what's covered in the cost cap. It could get ugly for red bull

[@TheRacingPilot]

Exactly, these excuses are not valid 👍

[@Chyeahokay]

I feel like Mercedes and Ferrari and redbull have already past the cost cap

[@TheRacingPilot]

Well they definitely have but not officially, as I said they'll be using many loopholes

[@GGS1404]

its a good thing when we see teams like AM and mclaren making stride foward but bad because its make more teams hesitant to hire young guns. Crash its the big part of learning F1 and rookies makes mistakes..

[@seen48]

I agree that it’s working now, but that list of exemptions is way too long and grey. It’s definitely helping the teams with much lower operating budgets for now.

[@TheRacingPilot]

Yeah it's 100% helping the teams no doubt

[@pauls5745]

if there would be f1 races that do not count to the championship or say you can race x times for the championship during the season, then teams could sit out and sort the car better or chase every race for a paycheck/save budget at critical points in the season. I think this would stretch teams' money.

[@TheRacingPilot]

Well but no one would race in that case because it's extra cost if it does count towards the championship. That way those races that don't count wouldn't be races because no one will compete

[@shinye.3428]

Any way to check your information sources?

[@TheRacingPilot]

The FIA Financial regulations 👍

[@70lulatsch]

Is it with the cost cap for some teams now possible to make a profit? Or is the income side also affected?

[@TheRacingPilot]

Well the teams wouldn't make a profit because they would reallocate revenue onto other projects like America's Cup 👍

[@MuhammadNiz007]

The budget cap is working great.

[@TheRacingPilot]

What makes you say that?

[@sala1693]

can you make a video on all this f1 drama with alpine and pastri and him joining Williams or mclaren please

[@TheRacingPilot]

It's certainly coming, I'm just waiting for it all to be resolved and worked out hahah

[@sala1693]

@@TheRacingPilot ok thanks because im still kinda confused on it

[@hawlikd]

I don't buy this cost cap on F1 Teams. How are they going to tell who buys what. What, they don't slush bank accounts that cannot be traced. What, they have accountants looking over the books like the IRS?

[@TheRacingPilot]

Yep, they have expert investigative accountants searching their books 👍

[@dimitrijensk2845]

I still believe that if there is a crash, the offending team should pay for it. In 2021, Bottas by himself, damaged over 5 cars! Making other teams pay for that is insane to me. This rule should only be in place however, if it is 100% obvious who’s fault it was.

[@TheRacingPilot]

Well but as always it's hard to apportion blame to one driver 100%. The issue also comes from crashes like Schumacher in Monaco where it was only his fault but the team still has to work with that under the budget cap. Makes most sense to just not include it tbh

[@dimitrijensk2845]

@@TheRacingPilot of course, I was more referring to clear incidents between different teams. To use the Bottas example again… the crash in Hungary was all on him. Completely his fault. So if it was up to me, there should have been an investigation into which cars were damaged because of that mistake and Mercedes should have had to pay the other teams accordingly.

[@emir.e99]

*For Me I don't mind a cost cap because it does allow for smaller team to keep operated but 140 million is way to less because f1 it self is expensive business....maybe thwy should stop around 200 million should be balance enough...well i hope so*

[@TheRacingPilot]

Well I'd argue the £140 million is too high, if it was £200 million then the teams wouldn't have to worry

[@emir.e99]

@@TheRacingPilot ooohhh dear yeah hahahahaha don't even realize that maybe i was busy eating cereal while watching your video 😂...for me it doesn't.matter as long it bring balance to sport which i hope so ...anyway great video 🙌

[@MuhammadNiz007]

I don't agree with you because I know how budget cap is working and it's not how you think. It's not the FIA monitoring. I obviously can't tell you who is monitoring or how are they working but it is lot of different than you think.

[@TheRacingPilot]

Well it's yeh cost cap administration which is comprised of independent auditors and regulators. But obviously they give feedback to the FIA 👍

[@justusanders242]

I feel like a total Cost Cap is impossible

[@TheRacingPilot]

It's certainly not easy, they would have to factor in certain areas

[@armanromana1580]

i dont get why people like a cost cap? i feel like it makes the development war less exciting as teams are more conservative with upgrades

[@TheRacingPilot]

Absolutely, the main aim is to make the smaller teams more competitive and generally make the field closer 👍

[@kelly2631]

$1 salary with $8000 bonus per month

[@TheRacingPilot]

Pretty much 🤷‍♂️

[@GertvandenBerg]

Is this the first time we see your face?

[@TheRacingPilot]

I made a video about Toto Wolff before this with my face 👍

[@GertvandenBerg]

@@TheRacingPilot Ah, I probably listened to that video.

[@TheRacingPilot]

Fair enough 👍

[@tomso9246]

So this is a "publicity stunt" to SAY they are lowering spending BUT "loop holes" galore. And spending should be down anyway without Maza-spin crashing into everyone? But with this cost cap, F1 itself can still collect massive track fees from deplorable countries and sponsors?

[@TheRacingPilot]

Pretty much, it's a step in the right direction but a lot needs to change about the cap

[@SkiiYacht]

😂Nope😑

[@TheRacingPilot]

Pretty much long story short hahaha

[@MENQN]

Yes the Redbull is the fastest just got a little bit carried away 🤣

[@TheRacingPilot]

Yeh we'll see what happens 🤷‍♂️

[@MENQN]

@@TheRacingPilot Cheating confirmed by Redbull at last they couldn't keep going on with them lies

[@NBLCGBLN]

3rd!

[@TheRacingPilot]

🙌🙌

[@UnleashthePhury]

The last sport in the world that needs a cost cap is Formula 1. What they need is a cost floor - like, if you’re not prepared to spend $350M/year to make this work, GTFO.

[@TheRacingPilot]

It's an interesting point, on one hand there should be a cap to reduce financial bullying but on the other there should be a floor to maintain technical prowess 👍

[@UnleashthePhury]

@@TheRacingPilot Exactly. The biggest car companies in the world are the players of this game. It’s not like other sports, where you have teams in the most famous cities in the world playing teams from smaller markets and competing for players. This is a travelling circus starring the most famous brands in the world. If they’re not all gunning for the title, they should be moved aside for a team that is.

[@drmeddenrasen007]

After todays reports you can say that it isnt working or just ignored 😂

[@TheRacingPilot]

Well we'll see what the FIA decide to do. Firstly we don't know how bad the breach is - if present at all. And secondly we will see what they decide to do as a punishment. But either way it needs to be strict. 👍

[@drmeddenrasen007]

@@TheRacingPilot it was just a joke :) Hope it will be strict!

[@kwameagard7717]

No it’s not working

[@TheRacingPilot]

Yep clearly 😂