During the last few weeks, the complicated issue of compliance with the cost ceilingthe so-called budget cap. Thanks to the inflation that has affected many sectors, first due to Covid and now due to the war that has broken out between Russia and Ukraine, the three richest and most important teams in the Circus – Mercedes, Red Bull and Ferrari – have clamored for an increase in the maximum spending limit for each season, currently set at $ 140 million. The reason given by these teams is linked precisely to the generalized increase in prices. An adaptation is therefore called for “immediate” of the cap, which takes into account the inflation figure.
The British journalist Joe Saward, in a detailed analysis of the issue, however, pointed the finger at the big three, and in general against the teams in favor of raising the spending ceiling. In fact, according to him, these teams pretend to ignore the advantage obtained, precisely in terms of managing the price increase, by being able to count on a very large portion of revenue in dollars. In fact, in the last year, the American currency has become even more a ‘safe haven’ and has increased its value by about 15% compared to the Euro. This is a major advantage for teams because they receive payments – both prizes and sponsors – in dollars, but then spend in other currencies. In fact, the revenue for the teams is ‘by default’ 15% higher than a year ago.
The very fact that the budget cap is calculated in dollars is more convenient for the stables. In Europe, inflation is around 7% and could rise to around 10% by the end of the year. The dollar, on the other hand, ‘gained’ around 15% against the euro, 13% against the pound and 8% against the Swiss franc, the reference currencies of the various F1 teams. The overall bill should therefore see a increase of money for the teams, only partially ‘filed’ by the increase in prices. A possible deviation at the top of the cap budget bar would therefore only favor the big teams, penalizing instead the teams with fewer resources.
#Fistful #Dollars #FormulaPassionit