FIA issue statement as cost cap violation rumours gain traction

The FIA has released a statement in the wake of growing speculation that there are allegedly multiple F1 teams in breach of the cost cap for the 2024 season.

Rumours circulating in the paddock at the Mexico City Grand Prix suggest there has been one small procedural infraction and one thought to be considerably more serious.

Formula 1's financial regulations stipulate that teams must not spend above the cost cap across a year, which was first implemented for the 2021 campaign.

The base level of the cost cap is set at $135 million, but when adjusted for inflation, the amount teams are permitted to spend is closer to the region of $150-160 million per annum.

Only sporting and technical areas, or performance-related costs, are included in the rules, with the three highest-paid staff members and drivers also excluded from the figure. Marketing costs, for example, do not fall within the cost cap.

The FIA issued a statement on media day at the Autodromo Hermanos Rodriguez to reiterate that it "does not comment on individual submissions" pertaining to the cost cap.

The motorsport governing body stated: "The FIA's Cost Cap Administration is in the process of finalising the review of the 2024 submissions from Teams and Power Unit Manufacturers, the result of which is expected to be communicated shortly.

"The FIA does not comment on individual submissions made by specific Teams and/or Power Unit Manufacturers and, as per established practice, the results of the review will be made public once assessment of all submissions are completed and finalised."

It would not be the first time teams have breached the cost cap, with both Red Bull and Aston Martin found in breach of the regulation in 2022 (for the 2021 season).

However, the latter was only for a procedural breach, which came with a $450,000 fine. The former was also found guilty of a "minor financial overspend", which equates to less than five percent of the cost cap.

The Milton Keynes-based squad ultimately paid a $7 million fine and saw its wind tunnel testing allocation and restricted CFD limits reduced by 10 percent.