Newey worried by unexpected cost of F1’s budget cap

Legendary F1 designer Adrian Newey has made a striking revelation about the sport’s financial landscape, stating that Formula 1 is no longer the “best-paid industry” in motorsport due to the unintended consequences of the sport’s cost cap regulations. Newey, who is set to officially join Aston Martin next month after departing Red Bull Racing, has expressed concerns over the impact of financial restrictions introduced in 2021. The cost cap, designed to create a more level playing field by limiting team spending, has inadvertently caused significant shifts in employment trends within the industry. While Aston martin’s future managing technical partner acknowledged the importance of controlling costs, he pointed out that the current framework has led to unforeseen penalties that affect both recruitment and retention at Formula 1 teams. The Hidden Penalties of the Cost Cap Newey explained the duality of the cost cap’s impact, recognizing its necessity while also highlighting its drawbacks. “There needs to be a way of controlling the cost for teams, or certainly the benefit from spending more in Formula 1 to make it simply an arms race where the team with the biggest budget wins – that I fully agree with,” Newey told Auto Motor und Sport. However, he elaborated on how these financial restrictions have negatively affected personnel compensation and recruitment in F1. “The cost cap, though, does come with a lot of hidden penalties, one of which is it actually means Formula 1 is no longer the best-paid industry. “So for instance, at Red Bull, at the start, if we lost people, it would almost invariably be to another F1 team. “Now we’re losing people to tech companies because they pay better. We’re losing people to WEC teams because they pay better. “We’re struggling to get graduates because Formula 1 can’t afford to be the best-paying industry anymore, so it has a lot of, let’s say, unexpected penalties to it.” Calls for Regulatory Freedom Newey also suggested that the restrictive nature of the sport’s current rules should be reconsidered, given the financial limitations that teams now face. “But what it does mean is that you’ve effectively now got an engineering budget, and therefore the fear that spending more will mean you’ll disappear has theoretically disappeared, at which point, surely you free up the regulations rather than make them ever more restrictive. “But unfortunately, it’s not what’s happening.” A Shift from the Past Reflecting on his long and storied career in Formula 1, Newey reminisced about the early days when designers enjoyed more creative freedom. Asked which era he enjoyed the most, he responded: “The ones with the most freedom, that’s easy!” ©AstonMartin “When I first got into Formula 1, I had on my desk at work a copy of the 1973 Technical Regulations, and it’s about three or four pages… now we have this bible and that’s before you put all the technical directives in! “It’s so prescribed now, and I think it’s a shame.” Newey’s comments underline a growing debate in the paddock about the balance between financial sustainability and maintaining innovation within F1. While cost control measures have successfully narrowed the performance gap between teams, they have also made it difficult for the sport to attract and retain top engineering talent, a situation that could become a major concern for the sport in the future. Keep up to date with all the F1 news via X and Facebook The post Newey worried by unexpected cost of F1’s budget cap appeared first on F1i.com.