Author: Barkha Roy
The FIA has taken steps to address concerns regarding the use of special project divisions by Formula One (F1) teams, with the aim of ensuring compliance with cost cap regulations. It’s common for teams to set up divisions outside of F1 activities to work on technical projects and harness F1 knowledge for ventures outside the sport. However, suspicions arose that some teams were exploiting these divisions to gain performance advantages and share knowledge without accounting for it according to the cost limit.
To address these concerns, the FIA has issued a new technical directive, TD45, which prohibits the transfer of Intellectual Property (IP) from these external projects back to F1 teams without including it in the cost limit. The directive clarifies that any IP used by F1 teams in these divisions must be accounted for, eliminating the possibility of obtaining free sources within the same company. The FIA’s intention is to prevent teams from circumventing the cost limit rules and ensure fair competition.
Although the FIA has not released an official statement, the teams with special projects divisions say they are in compliance with the regulations and welcome the clarity. However, inside sources reveal that the TD45 has already caused changes in the teams, as they work to correct previous expenses that have not been accounted for in the cost limit since January 1st.
The FIA’s efforts to enforce compliance with the cost cap go beyond the technical guideline. They have intensified the scrutiny of team spending through comprehensive financial assessments. Visits to the teams’ factories and expanded compliance questionnaires with more than 100 questions aim to ensure transparency and adherence to the cost cap regulations. These measures aim to create a level playing field for all teams.
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In addition, the FIA has sought further clarification from specific teams, including Red Bull, Mercedes, Ferrari and Aston Martin, about their satellite operations. These teams take part in activities unrelated to F1, such as the America’s Cup, bicycle design and the 24 Hours of Le Mans. The FIA’s aim is to address possible loopholes that could allow the transfer of personnel and knowledge between these projects and F1 design, potentially bypassing the cost cap regulations.
The FIA guideline emphasizes that any intellectual property generated by these satellite organizations must be accounted for under the cost cap if it is used in Formula 1. The full implications of the FIA’s concerns regarding non-Formula 1 projects and their impact on Formula 1 research have yet to be revealed as further investigations and clarifications are made.