There are many important events on the Formula 1 agenda, such as the one for the new Concorde Agreement and the definition of the regulations for the new cycle which will start in 2026. Among the new features there will also be a review of the budget cap, with a maximum figure that should increase compared to the current one.
Although the numbers have not yet been officially disclosed, it is assumed that the maximum budget limit for a season could exceed $200 million starting from 2026, giving teams the opportunity to adapt. However, this budget increase should also include additional aspects that are not currently on the list.
Also in favor of this increase is Alessandro Alunni Bravi, head of Sauber, who has taken this new direction positively, citing for example the fact that the cost of living in Switzerland is higher than that of other countries. For this reason, the team must ensure that the remuneration for each individual team member is also adequate to retain the talent already present in the factory and also to attract talent from other teams, pushing them to change status.
Alessandro Alunni Bravi, Team Representative, Kick Sauber F1 Team
Photo by: Sauber F1 Team
“I think we have learned a lot over the last three or four years of implementation. Also about how it is applied in different areas. And I believe that the objective will be to avoid areas that can be interpreted differently by the teams, especially regarding the definition of F1 or non-F1 activities,” explained Alessandro Alunni Bravi.
After the announcement of Audi’s arrival, in recent months Sauber has stepped up to the plate to hire new engineers in order to strengthen its technical staff, with the aim of being ready for the challenge of the new regulatory cycle which will start in 2026. on the one hand, the German brand will arrive with a new Power Unit developed independently, but on the other it is clear that Sauber will also have to invest in new structures and new personnel to strengthen its technical departments.
In recent months, for example, it was decided by mutual agreement to increase the CapEx, i.e. the spending limit outside the budget cap that allows the teams to invest in new equipment with a quantity defined by the FIA in a certain period of time. Second-tier teams, for example, can spend more money than top teams, in order to level the grid also in terms of infrastructure in the medium-long term. Sauber should also benefit from it, because thanks to the investments made by Audi it will be able to strengthen some aspects in which the team is currently lacking.
Valtteri Bottas, Kick Sauber C44
Photo by: Sauber
The idea behind the increase in the budget cap should make it possible to level out certain aspects according to Alunni Bravi: “The objective is to have a level playing field, especially in the car construction departments. So all these lessons that we have had in recent years, I believe they can be summarized in the new regulation. It’s an opportunity for all of us to get a clear picture.”
“And I think for teams like us it will be important to introduce an element that can, I would say, equalize the differences in terms of cost of living, because obviously there is a kind of discrepancy between the cost in Switzerland and the cost in other countries, and I think we should put all teams on the same level, at least as a starting point. So the difference will be the ability of the people and the quality of the work, not other factors that can negatively influence this starting point,” added the Sauber manager.
According to Christian Horner, since its debut in 2021 the budget cap has undergone many changes also because we have learned how to manage certain elements, in a constant learning process that has involved not only the teams, but also the FIA itself. Some directives, such as that for projects external to the Formula 1 teams but which may have a transfer of knowledge towards the teams, arrived precisely following input from the Federation, which wanted to impose clearer and more stringent limits.
Christian Horner, Team Principal, Red Bull Racing
Photo credit: Red Bull Content Pool
“I think it’s about finding a balance. I believe there has been a lot of learning through the operation of the budget cap. And I think the most important thing for 2026 is that employees don’t have to bear the brunt of these changes. I therefore think there is a sensible discussion about what is included, what should be excluded and what is actually relevant to create performance,” said the Red Bull Team Principal. In recent weeks there has also been talk of the possibility that maternity leave could end up under the budget cap, an aspect that has caused discussion but which, in the end, will remain outside the cost cap, protecting female workers.
“For example, does a Christmas party really make your car go faster? Now, if this element is to be included in the roof, obviously every technical director will want a front wing than a Christmas party. It is therefore a question of finding a balance. I’m not saying that our technical director doesn’t like Christmas parties, but he likes the front wings. It is therefore a question of finding a balance in which the employees do not pay the price. But I think, overall, it was a very productive and sensible discussion. It’s about finding a balance between what to exclude and what to include in the budget,” Horner added.
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