Formula 1

Ferrari's €2.5m damage bill highlights F1 cost cap problem

Ferrari says a 2.5 million euro damage bill so far this season shows why Formula 1 needs a potential rethink about cost cap limits.

Jonathan Noble

Edited: Aug 13, 2021, 12:16 PM

Copy link

Share on Viber

Add as a preferred source

Carlos Sainz Jr., Ferrari SF21 crashes in qualifying

F1’s top teams have faced a big headache this year trying to cut back their spending to get below the $145 million cost cap limit that has been introduced.

Both Mercedes and Red Bull talked about the pain they had to go through over the winter to lay off staff that they could no longer afford to keep.

But as the season has worn on, there has been further concern about the complications that outfits are facing when it comes to paying out for unexpected damage.

Valtteri Bottas’ crash at Imola prompted Mercedes to fear it would have to cut back on development updates, while Red Bull was unhappy about a $1.8 million repair bill it faced from Max Verstappen’s accident at the British Grand Prix.

Ferrari team principal Mattia Binotto suggested after the Hungarian GP, when Charles Leclerc was taken out by Lance Stroll at the first corner, that rivals whose drivers are guilty of causing crash should pay for any damage caused.

But while not all teams are in agreement that such a scenario is realistic, Binotto thinks there are justifiable grounds for at least teams and F1’s chiefs to get together and talk about it.

He says that an inspection of bills from the first half of 2021 shows Ferrari has faced paying out 2.5 million euros ($3 million) for damage – which shows the kind of leeway that has to be built into budgets nowadays for unexpected events.

“These are overall damages, and sometimes we can damage ourselves, so these are not [just] other teams that damage ourselves,” explained Binotto.

“Now, obviously, there's been a lot of discussions that if there is a crash and there is a guilty driver, and you're not faulty, and if you have been damaged, then should that be exempt from the budget cap?

“I think it's certainly an important point because the reason why I mentioned 2.5m euros is to show that overall the damage can be significant. So should we consider a different type of regulation in those cases?

“I think certainly there is merit for it. I think that certainly there are no obvious solutions, but it is something that no doubt we will discuss with the FIA, F1 and teams in the coming weeks, possibly to address it, to see if there is any solution for the future.”

Beyond the damage cost, there is also a fresh debate about whether teams should face exemptions from grid penalties if they suffer engine damage as the result of another drivers’ actions and are forced to take a fresh power unit.

Marshals assist Charles Leclerc after he crashes out of Qualifying

Photo by: Steve Etherington / Motorsport Images

Leclerc lost his second power unit of the year after he was swiped by the out-of-control Stroll at the first corner of the Hungarian Grand Prix.

Binotto thinks there are grounds to discuss a potential change here too, even though it would be very complicated to sort out.

“There is no obvious solution,” he said. “If we damage an engine, as in our case like in Hungary, it was an engine that still had its intended usage but was not new.

“By replacing it, you fit something new so you don’t do it with something of equal mileage and the same lifespan. So it’s complicated.

“There is talk of a further reduction in 2025, of moving from three engines to two [per season] so it is clear that the fewer engines there are, the more important the issue becomes.

“We will discuss with all the other teams, and with the FIA, because this is certainly a current issue, brought to light from several sources, and therefore it deserves to be explored. But I don't think there is an easy solution.”

We want your opinion!

What would you like to see on Motorsport.com?

Take our 5 minute survey.

- The Motorsport.com Team

Read and post comments

Share Or Save This Story

Copy link

Share on Viber

Previous article Tsunoda: Italy move has improved approach to F1 races

Next article Injured Aitken eyes Williams F1 sim and racing return next month

Top Comments

There are no comments at the moment. Would you like to write one?

View More & Comment

Latest news

TV ratings released for NASCAR Cup season finale

NASCAR Cup

NAS NASCAR Cup

Homestead-Miami

12 min

TV ratings released for NASCAR Cup season finale

Chase Elliott's car chief leaves Hendrick for NASCAR Truck crew chief role

NASCAR Truck

NSTR NASCAR Truck

Homestead

59 min

Chase Elliott's car chief leaves Hendrick for NASCAR Truck crew chief role

The surprising convergence behind F1's increasingly competitive 2026 season

Formula 1

The surprising convergence behind F1's increasingly competitive 2026 season

“I was getting beat up” – How Daniel Ricciardo burned out on ‘humiliating’ F1 return

Formula 1

F1 Formula 1 5 h

“I was getting beat up” – How Daniel Ricciardo burned out on ‘humiliating’ F1 return

Feature

Discover prime content

Tough love and F1 titles – A key life lesson behind Wolff's Mercedes success

Formula 1

Sao Paulo GP

By Ronald Vording

Tough love and F1 titles – A key life lesson behind Wolff's Mercedes success

How Brazil showcased everything that's good about F1 - plus some that isn't

Formula 1

Sao Paulo GP

By Filip Cleeren

How Brazil showcased everything that's good about F1 - plus some that isn't

Top 10 F1 cars of the 1970s

Formula 1

By Kevin Turner

Top 10 F1 cars of the 1970s

Why Rafael Camara should take heart from a tough F1 debut in Brazil

Formula 1

Sao Paulo GP

By Jake Boxall-Legge

Why Rafael Camara should take heart from a tough F1 debut in Brazil

Subscribe and access Motorsport.com with your ad-blocker.

From Formula 1 to MotoGP we report straight from the paddock because we love our sport, just like you. In order to keep delivering our expert journalism, our website uses advertising. Still, we want to give you the opportunity to enjoy an ad-free and tracker-free website and to continue using your adblocker.

You have 2 options:

Become a subscriber.
Disable your adblocker.

Subscribe now Already subscribed? Sign in here

Already disabled your adblocker?
Reload page

Manage Alerts