FIA tackles impact on cost cap of teams' non-F1 projects

The FIA recently issued a technical directive to F1 teams that closes a potential loophole in the sport's cost cap regulations regarding the use of staff assigned to non-F1 projects.

TD45 reportedly addresses the impact of external sporting ventures on Formula 1 teams, with four teams - Red Bull, Mercedes, Ferrari, and Aston Martin – drawing the attention of the governing body for their satellite operations according to Italy's La Gazetta dello Sport.

The FIA has sought further clarification on these operations following the submission of the latest cost cap documentation across the F1 grid.

Red Bull and Mercedes are both involved in the America's Cup, respectively through their Red Bull Advanced Technology and Applied Science affiliates and have assigned in the past senior technical staff to outside projects.

James Allison recently resumed his role as Mercedes' technical director after contributing to the design of the INEOS Britannia outfit's America's Cup sailing yacht.

Ferrari has contributed engineering expertise to AF Corse's Hypercar project in the WEC, while Aston Martin's Performance Technologies division is also a purveyor of engineering services to the outside world.

Various team projects involving not only boats but also bicyles and road cars, among other outside endeavors, have therefore drawn the scrutiny of the FIA.

The governing body fears these projects could be used as a discrete source of engineering for F1, thus bypassing Grand Prix racing's stringent budget cap rules.

The FIA's latest TD therefore makes clear that teams may not transfer any Intellectual Property from projects running outside of their F1 operations back to a team free of charge, the IP must be accounted for in a team's budget cap.

• Read also: Horner worries cost cap triggering 'race to the bottom'

Earlier this year, Alpine team boss Otmar Szafnauer voiced his concerns about teams gaming the system by employing staff officially assigned to outside projects.

"I think what some of the other teams are now doing, the bigger teams, is they're looking to exploit or have a better understanding of where there's some loopholes or some organisational changes you can make to actually stuff more people under that budget cap," commented Szafnauer.

"They're looking at: ‘I got rid of 100 people, but now I want to hire them back’. They can find spots for them, where they either don't count as a whole person or they do some marketing stuff or whatever it is, or they work on a boat for some of the time."

Last year, Red Bull faced severe repercussions due to the cost cap, the team receiving a $7 million fine and a 10% reduction in wind tunnel time for a minor overspend in their 2021 financials.

The ongoing scrutiny could carry carry significant implications, as Red Bull, Mercedes, Aston Martin, and Ferrari currently occupy the top four positions in the Constructors' Championship.

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