The FIA has taken the decision to change the rules of the game in Formula 1 from the 2026 season to facilitate Audi’s success in the discipline.
From 2026, Formula 1 will adjust its budget cap to take into account salary gaps between the countries where the teams are based, according to information obtained by the
BBC.
This change aims in particular to allow Audi to be competitive upon its official entry into F1, planned in a little over a year.
Audi, which acquired the Sauber team, faces significantly higher salary costs than its competitors, since the team is based in Switzerland, where salaries are 35-45% higher than in the United Kingdom or in Italy, where the majority of other teams are based.
A crucial decision for Audi
This modification of the budget ceiling, discussed for at least two years, was officially validated during the FIA World Motor Sport Council. While this allows Audi to operate with a higher budget cap than its rivals, the FIA’s aim is to ensure financial fairness between all teams. The aim is to compensate for the specificities of teams based in countries with higher salaries, such as Switzerland.
This change is part of a broader overhaul of the budget cap, introduced in 2021. At the same time, the cap will be raised gradually, from $135 million per year in 2023 to $215 million in 2026. However, despite this apparent increase, the real increase in purchasing power remains limited, as it takes into account inflation and other financial adjustments.
Impact of adjustments on teams
Other adjustments include the removal of the ability for UK-based teams to benefit from a research and development tax credit, as well as the impact of exchange rate fluctuations since 2021. For Audi, the exact budget cap remains to be determined, as it will depend on the share of salaries in the team’s total budget.
According to data from the Organization for Economic Co-operation and Development (OECD), F1 teams in countries like Switzerland have much higher salary levels than other teams.
For example, the three best teams in the field have an average salary of 90,000 pounds, compared to 125,000 pounds for Sauber, which is last in the constructors’ championship this season. Knowing that salaries represent around 35 to 40% of a team’s budget, Audi/Sauber finds itself at a disadvantage compared to its competitors.
Opposition from other teams
Mattia Binotto, Audi’s recently appointed chief operating officer and technical director, explained that this adjustment to the budget cap was essential for Audi to be competitive in Formula 1. He admitted that without this adjustment, Audi would have been at a competitive disadvantage. approximately $20 million due to exchange rate fluctuations incorporated into the 2026 recalculations.
The other nine F1 teams, however, are opposed to the introduction of this adjustment in 2026. However, they have no way to prevent this decision, as none of them have yet signed a contract with Liberty Media and the FIA for the 2026 F1 season. This means that there is not yet a governance structure to block or influence this change.
Further discussions will take place over the next two months, after the teams have studied the data provided by the FIA. A final decision will be made at the next meeting of the World Motor Sport Council in December.
