Red Bull F1 team principal Christian Horner has given his opinion on what he would like to see changed amid F1’s strict budget cap rules.
The new era of F1 kicking off in 2022. In an interview with RacingNews365.com, Red Bull F1 team principal Christian Horner shed some light on the current state of Formula 1, regarding the impact of the new car and the cost limit that took several years to introduce.
Christian Horner was diplomatic when asked if the FIA could take F1 to the next level in the coming years under President Mohamed bin Sulayem.
“The FIA is clearly undergoing major changes with a new administration, leadership and all aspects of the business that we are learning about,” Horner said.
“Nobody knows everything and there are always things that can be improved, whether it’s the team, the FIA or the promoters. I don’t think there’s one area where I would say ‘perfect’. I think it’s the same with teams, there’s it’s always a constant evolution and as long as that drive is there, things will only get better.”
When Liberty Media took over from Bernie Ecclestone in 2017, F1 presided over the worst governance process in its 70-year history. Six teams were given disproportionate voting rights and minor changes to the technical and racing rules required unanimous consent.
For 2021-2025, this process has been refined to allow for more equal voting rights on sports and technology. If there are votes in the F1 Commission, 30 votes will be distributed. One vote for each team, 10 for the F1 boss and 10 for the FIA.
This means that smaller teams can now introduce rule changes that could affect larger ones, much to Christian Horner’s frustration.
“One could argue that smaller teams have too much say in implementing important rules that could affect the top teams,” Horner said.
“I think this is where the FIA and the promoters really need to look, especially with regards to the budget cap.”
Christian Horner gave an example of a technology partner who wants to get into F1 and showcase their products, but has to decline because they hit a budget limit.
“Technical partnerships and F1 have always been very important, as a simplistic subject,” Horner said.
“But when a particular technology hits its budget limit, for example, you have a computer sponsor who wants to give you a new laptop, and you may not need a new laptop, but the sponsor wants it to showcase the product. I’m here
“But when the product hits the budget limit and has to be rejected, I think there are areas that can be improved so as not to discourage tech companies from entering F1.”
One of the key stories of 2022 is the complexity for teams to understand the new set of budget cap regulations.
Three teams have already committed procedural violations related to administration and paperwork, with Red Bull exceeding the limit for entries classified under the $145 million budget cap.
This should continue as the rules are in their early stages and the FIA are improving the process with the teams. Although teams have come under close scrutiny after exceeding the qualifying limit, Christian Horner says the budget cap is important if F1 is to be cheaper in the long run.
“I think the regulations are very complicated and of course the regulations will evolve. What I would like to see is less pressure on the roof,” Horner said.
“The biggest drivers of costs as a team are the technical regulations and the sporting regulations. A greater emphasis on what those costs are and how those costs are driven by those regulations underscores the limits. It will be less”
“I think inevitably there will be times when it will become difficult to crack down, or even whether it’s legal to crack down. It’s time to question things like the salary cap.”
“So it’s a process, a learning curve. I think there are a lot of positives about the budget cap, but there are areas that can be improved and developed.”
Off the shelf or ‘off the shelf’ parts are often touted as a way to cut costs in F1.
Christian Horner believes that the solution could be used in the future for non-performance aspects of the car.
“For my part, I think we need to look at the standardization of some components that are not related to performance. There are many things we can look at, such as transmission. We could do a lot more in this area.”
“Regarding the engine, I think we can introduce more standard components, because it’s still a very expensive engine with the regulations written for 2026.”
“I think the budget cap includes costs, but it doesn’t address the fundamental aspect of reducing the cost of the product. I think this is where the technical and sporting regulations have a significant impact on this.”
Christian Horner points out the sheer number of people needed to drive the car during a Grand Prix weekend.
“If you think about it, it takes 800 people to build two cars. The question arises: ‘Why? Why do we need so many people?’ And that brings me back to regulation.”
“If you focus on technical and racing rules, you will naturally reduce costs and overheads. Budget constraints are effectively a dam to prevent this, so you need to go upstream and see where the cost drivers are. There is
“But I think we have to go ahead and look at the technical and racing rules which are expensive to really address the root cause.”
Initially, F1’s budget cap was set at $175 million, but the coronavirus outbreak has left many teams in financial uncertainty. As a result, it will be set at $145 million in 2021 and reduced to $140 million in 2022. It was to be reduced to $135 million in 2023, but added an adjustment for inflation.
But Christian Horner believes this should be increased because inflation is happening globally, especially in the UK where half of the electricity grid is located. Inflation will reach an all-time high of 14% in September 2022. It will fall to 10% in December 2022.
“Certainly in this country (UK) when you see 10% inflation, it has a direct effect, it unduly affects employees and it makes long-term employees get protracted,” said Christian Horner.
“I think we need a little more leeway while still being accountable to the system to account for the rising cost of living.”
Christian Horner is also claiming an increase due to the addition of sprint races and an expanded calendar as F1 appears to be contested over 23 races, the longest ever.
“Given the races we’re running and the proximity of those races and the parts needed to service them, when we introduce sprint racing we can’t afford not to race, so we need more parts. We have to bring them,” says Christian Horner.
“Everyone has unintended consequences that affect bottom line. So I think we need to look at that from 2024 onwards.”
