FIA completes review of 2023 FIA Formula 1 financial compliance
The FIA has confirmed that the Cost Ceiling Authority (CCA) has completed its review of the reporting documents submitted by each F1 Team participating in the 2023 FIA Formula One World Championship and each PU Manufacturer registered to supply the next generation PU (Power Unit) for introduction from 2026 for the period ended 31 December 2023.
2023 marks the third year of implementation of financial regulations for F1 teams and the first year of implementation of financial regulations for PU manufacturers.
The review of the reporting documents was a thorough and intensive process over a period of five months, with all F1 teams and all PU manufacturers providing full support in providing the information required. CCA notes that all F1 teams and all PU manufacturers acted in good faith and in a spirit of cooperation throughout the process.
The results of the review are as follows:
Results of the F1 Team Review Process:
- All 10 F1 teams that are compliant with the 2023 regulations have been found.
PU Manufacturer Review Process Results:
- Four PU manufacturers were found to be compliant in 2023, as well as Alpine Racing SAS and Honda Racing Corporation (HRC) for procedural violations.
- CCA confirms that both Alpine Racing SAS and HRC were found to have breached procedures, but neither exceeded the cost cap. Alpine Racing SAS and HRC have always acted in good faith and are currently working with CCA to resolve the matter.
- Given the nature of the violations, the complexity of the new financial provisions for PU manufacturers, and the challenges associated with the first year of implementation, CCA proposes that these two PU manufacturers resolve their respective violations through an Accepted Breach Agreement (ABA).
- Once these two PU manufacturers approve the ABA summary, it will be finally published as specified in the financial regulations.
Note to editors
The F1 team financial regulations have been introduced into the FIA Formula One World Championship from the 2021 season, following the unanimous approval of the F1 teams. The intention of the F1 team financial regulations is to limit the championship’s spending, thereby ensuring its long-term viability and encouraging a convergence of performances between competitors, making racing more exciting.
For the 2023 season, financial regulations for PU manufacturers are introduced to regulate the development and supply costs of the next generation of power units, which will be launched from 2026.
The financial regulations are detailed to reflect the complexity of the sport as a whole. The process of reviewing submissions from F1 teams and PU manufacturers by the CCA requires a significant amount of work, and this was done within the timeframe expected by the FIA, which is similar to the timeframes seen in other major sporting events.
The CCA is responsible for managing and monitoring compliance with financial regulations, investigating suspected violations of financial regulations through review procedures, initiating full investigations when deemed necessary, and taking appropriate enforcement action in response to suspected violations of financial regulations.
The CCA has several options available to it when dealing with alleged breaches of financial regulations. If it deems appropriate, it may enter into an agreement with the relevant F1 team or PU manufacturer, known as an accepted breach agreement, for breaches of procedure or minor overspending, or if it cannot reach an agreement or if the CCA deems it more appropriate, it may refer the case to the Cost Cap Review Panel. If there is an alleged major overspending breach, the CCA must refer the case to the Cost Cap Review Panel.
The Fee Limit Panel consists of 12 judges elected by the FIA Congress in accordance with FIA regulations. The panel is selected from candidates nominated by the voting FIA Sports Member Associations, at least 5 F1 Team Groups and at least 3 PU Manufacturer Groups.
For both F1 teams and PU manufacturers, minor overspending infringements (less than 5% of the cost cap) may result in financial penalties and/or minor sporting penalties. Major overspending infringements (greater than 5% of the cost cap) may result in mandatory constructors championship points deductions and may result in financial penalties and/or major sporting penalties if confirmed by the cost cap review panel.
Click here to read the full financial regulations of F1 teams and PU manufacturers.
