FIA introduces strict new rule to shut F1 budget cap loophole

The FIA has introduced a brand new article into the operational regulations aimed at stopping Formula 1 teams from using back-door routes to keep staff effectively working on their F1 project while officially sitting under a different division.

Formula 1 teams have operated under a budget cap since 2021, limiting how much they can spend developing a faster car and forcing them to prioritise where that money goes.

There are a handful of exceptions, including driver salaries and the pay packets of the three best-remunerated senior figures at each outfit, but beyond that, salaries are included, and teams have found it far harder to simply hire more people in the search for small performance gains.

Several teams run separate divisions that work on projects outside Formula 1 entirely, though suspicion has lingered for some time that data could still be passed across to benefit the F1 operation. Red Bull has its Advanced Technologies arm, Aston Martin runs Performance Technologies, and Mercedes has its Applied Sciences division.

To prevent information from those divisions from actually making its way back to the F1 team, the FIA has decided to introduce an entirely new article into the operational regulations from the 2027 season.

The article, titled Physical and IT Segregation Between F1 Activities and Non-F1 Activities, requires teams to strictly separate their F1 operations from non-F1 activities, both physically and digitally.

That means staff will no longer be able to simply share workspaces and IT systems, and access to technical data will need to be tightly controlled.

Restrictions will also apply to shared facilities. Certain equipment, such as simulators, wind tunnels and test rigs, can still be used by both groups, but in principle not at the same time.

Teams will additionally be required to manage and log access rights, allowing the FIA to check that the rules are being followed.

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Stricter rules on data and staff

The FIA will also be given explicit powers to check compliance through on-site inspections and forensic IT audits. Teams will not be permitted to get around the rules by swapping technical information via messaging apps, external storage devices, outside service providers or intermediaries.

From 1 January 2027, they will also be required to keep records of access rights and digital audit trails, so the governing body can verify compliance retrospectively.

The separation goes beyond simply keeping workspaces apart. The exchange of digital results and technical information will also be bound by strict conditions.

In certain cases, information from F1 staff may be passed to employees working on non-F1 activities, but only under specific conditions and with the required approval and documentation. The reverse transfer is not permitted.

The FIA has also set conditions for staff moving between F1 and non-F1 activities. Depending on the direction of the move, mandatory periods will apply during which they cannot carry out certain work or access relevant systems and data.

Through these measures, the FIA wants to stop teams exploiting the boundaries between different activities to indirectly share technical knowledge or resources. Responsibility for actually enforcing the separation lies with the teams themselves.

Article F6 is intended to tighten oversight of the divide between F1 and non-F1 activities, contributing to a fairer application of the sport's financial and technical regulations.

The key question now is how much teams running these kinds of external divisions will need to change their working practices to fall in line with the new rule.