After both his cars suffered massive damage in the Lap 1 crash at Hungary, Red Bull boss Christian Horner said the cost of repairs was going to be “brutal” under F1’s new budget cap. So what are the implications for the teams now they have to factor in the price of fixing damaged cars into their yearly budgets?
Under a new set of financial regulations for 2021, the Cost Cap limits teams to $147.5m of expenditure each year (with some exceptions).
After the second race in a row where Red Bull sustained serious crash damage to their cars following Max Verstappen’s 51G impact after tangling with Lewis Hamilton at Silverstone – with the repair bill estimated at $1.8m – before the double whammy at Hungary when both Verstappen and Sergio Perez’s cars were hit at Turn 1, Horner lamented the impact on his team.
“Hugely frustrating obviously, brutal under the cost cap and just I think reaffirms when you have an incident that isn’t yours, we’re paying the price for that and that’s something that isn’t budgeted for,” he said.
So how does the cost cap work, how will the teams be affected, and why is it so expensive to build an F1 car in the first place? Sam Collins explains all in the video above, and you can visit f1tv.formula1.com to watch the full Tech Talk episode.