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The budget cap, or cost cap, is the amount of money a team can spend on the car’s performance in one season. Set at $145m in 2022 is reduced by $5m per year for the next two years. An increase is made for inflation and an additional $1.0 million is allowed for each race over 21 races.

The cap excludes driver fees, top management costs and administration costs like marketing or travel.

The cost cap does not cover engine development or production.

Andrew Burden

The author Kiwi F1 Fan

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