In the ongoing talks to make a new Concorde Agreement for Formula 1, teams are discussing where to place the cost cap in the bigger plan. Right now, there’s a $135 million limit until 2026, which seems to be doing okay despite some issues like Red Bull’s spending in 2021.
However, there’s been talk about expanding it to $220 million for the 2026 agreement. This would mean more things would be included in the cost cap, and fewer things would be exempted. For example, some spending limits for certain things would be removed, and all of that money would count toward the overall cost cap. This gives teams more freedom to spend their money where they want.
But there’s been a bit of a problem with this new proposal. Some things that used to be exempt from the cost cap, like maternity leave, might now be included. This has raised concerns because teams might be less likely to hire women if they have to cover the costs of hiring replacements for staff on maternity leave.
One of the current exemptions allows for the costs of maternity leave and other family-related leaves to be excluded from the cost cap. But with the new proposal, this might change.
Another thing being debated is whether team parties, like summer or Christmas parties, should count toward the cost cap. If they do, teams might not want to have these parties anymore, which could be disappointing for the staff.
Some sources say there’s enough concern about these changes that they might not be included in the final agreement. They think the cost cap might be lowered to around $215 million, and things like maternity leave and parties would be kept outside of it.
Mercedes boss Toto Wolff mentioned that there are some parts of the proposals that need to be changed, but overall, everyone wants to see the sport grow. Red Bull boss Christian Horner agreed, saying that while there might be some adjustments, the basic agreement is still good.
