Ferrari joins Red Bull: introduction of salary cap complicated

Talks about introducing a salary cap have started in Formula 1, but there are quite a few snags. Max Verstappen and Red Bull Racing are opposed to the plan anyway and Ferrari and Mercedes also warn that the introduction of such a measure is not a one-two punch.

In order to keep the sport as cheap and competitive as possible, Formula 1 may want to set a maximum amount per year from which the two drivers and the three highest-paid management members of the team will be paid. Red Bull understands the quest to bring down costs, but Christian Horner thinks other areas need to be looked at first. For example, he cites the expensive 2026 engine regulations.

Ferrari understands Horner's comment

Ferrari confirmed that a salary cap is being discussed, but Mattia Binotto also pointed out that it is a complicated subject. "We are discussing it, there is not a straightforward solution, especially for the drivers’ caps on the salary. But no doubt that we are discussing it and trying to understand what can be a solution. It will not be in the short term."

So time, that's what Formula 1 needs. Indeed, it will take a lot of figuring out because, for example, a Max Verstappen has already signed a contract through to 2028 with Red Bull Racing. Such contracts can't just be broken and so there are a lot of legal implications. "It's an important one, we understand it and we recognise it will take time, but certainly we will go through the process," Binotto added in the FIA press conference.

What does Mercedes think?

At Mercedes, they also foresee problems and are asking for time. Andrew Shovlin says that a well thought out cap can benefit the sport, but that Formula 1 should not rush into anything. The top executive of the German racing stable argues that proper research should be done first.

"So while they're very useful topics and on the agendas for very good reason, it is the immediate problem that is the one that… We need to prove that we can have a cap that works for the teams for the sport. And from my point of view, that would be the priority."