Formula One teams warn that FIA budget caps will result in hundreds of job losses as current spending limit of £110million is not enough to counteract rising inflation and some could lose up to 85% of staff
- Formula One teams have asked for the FIA to increase their budget caps
- Current team spending budget of £110million not enough to combat inflation
- Mercedes, one of seven teams based in the UK, currently employ 110,000 staff
- Alfa Romeo, Alpine, Williams and Haas have all previously opposed a budget rise
Formula One’s leading teams have warned that hundreds of jobs could be lost if the FIA do not increase the budget cap immediately.
The spending limit of £110million per team is rupturing under the weight of inflation.
One team principal indicated that if the FIA do not extend the limit, up to 85 per cent of some teams’ workers may be laid off.
FIA President Mohammed ben Sulayem took over from Jean Todt, who stood down in 2021
Mercedes, with the biggest workforce among the seven teams based in Britain, employ 1,100 staff at Brackley, Northamptonshire.
Red Bull principal Christian Horner told The Mail on Sunday: ‘My chief concern at the moment is what Mohammed Ben Sulayem, the FIA president does with the budget cap.
‘We are seeing global inflation soaring and that needs to be reflected in Formula One. We shouldn’t be held to ransom by two or three teams that are unaffected. Three-quarters of the teams are affected by it and the FIA have a duty of care towards them.
‘Your wages are your biggest overhead in any business. And the FIA need to act on this. The majority of teams are in agreement about the need to address this, but there are always going to be smaller teams looking for something out of it.’
At the last F1 Commission, Alfa Romeo, Alpine, Williams and Haas opposed a rise. Talks are ongoing.
Toto Wolff’s Mercedes are one of seven teams based in the UK impacted by rising inflation