Breaking: McLaren handed six-figure fine after Formula E cost cap breach

The former McLaren Formula E outfit has been handed a €400,000 fine by the FIA after breaching last season's cost cap.

McLaren Electric Racing Limited (MERL) officially withdrew from the all-electric championship at the end of the most recent campaign in July 2025, but has now received the largest fine in Formula E history.

In an announcement on Thursday morning, the FIA revealed that McLaren had signed an Accepted Breach Agreement (ABA), dated June 1, following a minor cost-cap overspend breach.

Formula E's cost cap stands at £12,246,766, with McLaren committing a 4.54% breach after spending £555,628 over the limit.

McLaren voluntarily notified the FIA's Cost Cap Administration that it had overspent, doing so before the completion of the FIA's review process.

According to the papaya outfit, which was based in Bicester, the overspend was primarily caused by costs associated with the team's wind-down process.

In a statement issued by the FIA: "The Cost Cap Administration recognised that MERL has identified and voluntarily notified the Cost Cap Administration of a minor overspend prior to the completion of the review process, that the minor overspend arises primarily from costs associated with the orderly wind-down of the team following its decision to cease participation in the Championship at the conclusion of Season 11, that the Cost Cap Administration found no evidence of any aggravating factors within the meaning of Article 10.12 of the Financial Regulations, nor any indication that MERL acted in bad faith, dishonestly or in a fraudulent manner or wilfully concealed any information from the Cost Cap Administration."

Based on that, McLaren was offered an ABA by the Cost Cap Administration, given the ex-British team's willingness to cooperate and its acknowledgement that it had overspent.

Nevertheless, McLaren had breached Article 10.7 of the Financial Regulations, as its relevant costs exceeded the cost cap. This was also acknowledged by the organisation.

As a result, the former Formula E outfit has been issued a €400,000 fine, which must be paid to the FIA within 30 days. It is the biggest financial penalty in the championship's history, surpassing Nissan's €300,000 fine in 2024 for breaching the Season 9 cost cap by less than 2%.

Whether the remaining teams complied with the Season 11 cost cap is expected to be announced later this summer, with McLaren's financial report having been prioritised by the FIA due to it having left the championship.