Budget cap vs Inflation
Discussion
I know Horner has been very vocal about this, and a lot of people have shot him down for running his mouth on the matter but now Mclaren are also being forced to stop development on this year's car due to inflationary rises impacting their budget.
https://www.autosport.com/f1/news/mclaren-budget-c...
A lot of these cost cap rules and limits were devised in 2019, and I don't know about you, but the world is a much more expensive place for me this year than it was in 2019. I remember grimacing at £75 for a 60 litre tank of diesel in 2019. Would be lucky to get under £100 anywhere in the UK for that now. And that's not the only cost on the rise...
https://www.autosport.com/f1/news/mclaren-budget-c...
Autosport said:
Having already admitted that it is on course to break the current $140 million cost cap limit, McLaren is more mindful about the risk of further over-spend until it knows what F1 is doing to address the problems teams face.
Maybe Horner was actually speaking some form of sense?A lot of these cost cap rules and limits were devised in 2019, and I don't know about you, but the world is a much more expensive place for me this year than it was in 2019. I remember grimacing at £75 for a 60 litre tank of diesel in 2019. Would be lucky to get under £100 anywhere in the UK for that now. And that's not the only cost on the rise...
Don’t forget the currency fluctuation. The US$ on which the cap is based, is up 12% against £ and € so far this year. That gives the teams another 12% of budget in £ or € - which surprisingly they’re not complaining about, as it offsets the inflation argument entirely.
Horner is just moaning that he kept too many resources on the car in the first half of the season, and now can’t afford to develop it through the second half of the year.
Look at RB’s announcement of a ‘hypercar’ this week, with almost no details - that says loudly that there’s a large team of designers and their computers who have to do something non-F1 for a while.
Horner is just moaning that he kept too many resources on the car in the first half of the season, and now can’t afford to develop it through the second half of the year.
Look at RB’s announcement of a ‘hypercar’ this week, with almost no details - that says loudly that there’s a large team of designers and their computers who have to do something non-F1 for a while.
Sandpit Steve said:
Don’t forget the currency fluctuation. The US$ on which the cap is based, is up 12% against £ and € so far this year. That gives the teams another 12% of budget in £ or € - which surprisingly they’re not complaining about, as it offsets the inflation argument entirely.
Horner is just moaning that he kept too many resources on the car in the first half of the season, and now can’t afford to develop it through the second half of the year.
Look at RB’s announcement of a ‘hypercar’ this week, with almost no details - that says loudly that there’s a large team of designers and their computers who have to do something non-F1 for a while.
I agree Steve. Having thrown all the budget at the RBR to get a great start to the season, Horner is now bleating for more> Well, no, it doesn't work like that. Great little savers put some away for problems up the track.Horner is just moaning that he kept too many resources on the car in the first half of the season, and now can’t afford to develop it through the second half of the year.
Look at RB’s announcement of a ‘hypercar’ this week, with almost no details - that says loudly that there’s a large team of designers and their computers who have to do something non-F1 for a while.
Pissed - as a McLaren fan - that they did the same!!
PhilAsia said:
Sandpit Steve said:
Don’t forget the currency fluctuation. The US$ on which the cap is based, is up 12% against £ and € so far this year. That gives the teams another 12% of budget in £ or € - which surprisingly they’re not complaining about, as it offsets the inflation argument entirely.
Horner is just moaning that he kept too many resources on the car in the first half of the season, and now can’t afford to develop it through the second half of the year.
Look at RB’s announcement of a ‘hypercar’ this week, with almost no details - that says loudly that there’s a large team of designers and their computers who have to do something non-F1 for a while.
I agree Steve. Having thrown all the budget at the RBR to get a great start to the season, Horner is now bleating for more> Well, no, it doesn't work like that. Great little savers put some away for problems up the track.Horner is just moaning that he kept too many resources on the car in the first half of the season, and now can’t afford to develop it through the second half of the year.
Look at RB’s announcement of a ‘hypercar’ this week, with almost no details - that says loudly that there’s a large team of designers and their computers who have to do something non-F1 for a while.
Pissed - as a McLaren fan - that they did the same!!
I'm hoping that the Mclaren one is more genuine than Horner's. I'm more inclined to believe Horner spaffing early than Mclaren, but I've been wrong before!
TypeRTim said:
I know Horner has been very vocal about this, and a lot of people have shot him down for running his mouth on the matter but now Mclaren are also being forced to stop development on this year's car due to inflationary rises impacting their budget.
Surely all that shows is that the budget cap does exactly what it was designed to do, help level the playing field between bigger and smaller teams so it isn't just the team with the deepest pockets that wins?If only Red Bull were being impacted because inflation was 50% higher in Milton Keynes than the rest of the UK/world then yes, they would have a case. They aren't though, all teams are being impacted by the same inflationary pressures and more or less evenly (you will get slight variations from country to country but this is generally a global issue, not an individual national one). As a result this is just another challenge for the teams and one they need to re-budget, rather than spend their way out of.
TypeRTim said:
I know Horner has been very vocal about this, and a lot of people have shot him down for running his mouth on the matter
i dont think many have an issue with the argument inflation being larger than teams anticipated (although iirc & according to Joe Saward, due to market forces & being paid in $ but spending in local currencies- teams are actually well up this season)but many people do take issue with Horner for the hypocrisy of telling the FIA to not alter the rules re: porpoising (i.e not affecting his team, so other teams should just suck up the car they built) but the FIA should alter the rules re: budget cap (i.e affecting his team)
Yeah, I'm not defending Horner's position on it... just hoped (possibly naively) that McLaren were better at managing their budget and the fact Seidel is now raising his voice that Horner was maybe a little more valid than first thought.
But if they've both spaffed too much too quickly, well... that's their own fault, isn't it!
But if they've both spaffed too much too quickly, well... that's their own fault, isn't it!
Why is the cap based on USD when all of the teams are based in Europe? The cap should be in either EUR or GBP.
I don't know why Horner gets criticised so much for this, I'm not a fan of him but he's acting in the interest of his team which is what anyone in his position would be doing.
I don't know why Horner gets criticised so much for this, I'm not a fan of him but he's acting in the interest of his team which is what anyone in his position would be doing.
DOCG said:
Why is the cap based on USD when all of the teams are based in Europe? The cap should be in either EUR or GBP.
I don't know why Horner gets criticised so much for this, I'm not a fan of him but he's acting in the interest of his team which is what anyone in his position would be doing.
I think it’s because CH is so quick to criticise other teams when they appeal for a change. He can come across a little condescending when doing so too.I don't know why Horner gets criticised so much for this, I'm not a fan of him but he's acting in the interest of his team which is what anyone in his position would be doing.
As you say, looking after his best interests as are the others.
Hungrymc said:
I think it’s because CH is so quick to criticise other teams when they appeal for a change. He can come across a little condescending when doing so too.
As you say, looking after his best interests as are the others.
Yes, it is simply politics and making arguments for what will benefit his team and employees. As you say, looking after his best interests as are the others.
DOCG said:
Why is the cap based on USD when all of the teams are based in Europe? The cap should be in either EUR or GBP.
USD is the primary global currency. F1 is an international business regardless of where the teams are based and almost all international businesses operate in USD.If RBR and the other big teams want any more than that it should come with redistribution of prize money to ensure all teams can spend additional money. So take money away from the top 4/5 positions and give it to the rest including 10th.
If the poorest teams are having to manage as they have no more money available to spend then big teams need to shut up and get on with it.
If the poorest teams are having to manage as they have no more money available to spend then big teams need to shut up and get on with it.
thegreenhell said:
The FIA have capitulated and raised the spending cap by 3.1% for this year, roughly $4.3m, and also agreed to index link next year's cap to the G7 inflation figure, but Horner is still whinging that it's not enough.
Let's face it. Extra money in F1 is like extra fuel or tyres, it's an advantage. Now it's a level (ish) playing field.If that chump wants his glories to stand scrutiny he has to do it on a fair basis.
But unfortunately, he will never think that way. Which is fine, F1 prospers when it has its villians ready to raise headlines.
TheDeuce said:
thegreenhell said:
The FIA have capitulated and raised the spending cap by 3.1% for this year, roughly $4.3m, and also agreed to index link next year's cap to the G7 inflation figure, but Horner is still whinging that it's not enough.
Let's face it. Extra money in F1 is like extra fuel or tyres, it's an advantage. Now it's a level (ish) playing field.If that chump wants his glories to stand scrutiny he has to do it on a fair basis.
But unfortunately, he will never think that way. Which is fine, F1 prospers when it has its villians ready to raise headlines.
PhilAsia said:
TheDeuce said:
thegreenhell said:
The FIA have capitulated and raised the spending cap by 3.1% for this year, roughly $4.3m, and also agreed to index link next year's cap to the G7 inflation figure, but Horner is still whinging that it's not enough.
Let's face it. Extra money in F1 is like extra fuel or tyres, it's an advantage. Now it's a level (ish) playing field.If that chump wants his glories to stand scrutiny he has to do it on a fair basis.
But unfortunately, he will never think that way. Which is fine, F1 prospers when it has its villians ready to raise headlines.
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