"There's a solution coming on that" - F1 managing director says effects of inflation on the sport 'needs to be reviewed'

F1 managing director Ross Brawn believes the effects of inflation on the sport will require a review of the budget caps.

Speaking to the Motorsport Network, the Briton stated that they would be providing a solution to the inflation problem in the near future.

Explaining the effects of inflation and the solution to the problem, Brawn said:

"I think the inflationary increase needs to be reviewed. Because when these rules were developed, inflation was relatively low and predictable, and now it's high and unpredictable."

"And if you look at the inflation rates that apply to industrial enterprises, like an F1 team, you've got power, you've got raw materials, you got all the things which are proving to be quite expensive at the moment. So I think there's a solution coming on that."

Many teams have been seeking a review or an increase in the budget caps, with inflation rates affecting economies.

Acknowledging the need to review the budget caps, Brawn has assured that they will increase the budget caps or find another solution to the problem.

The Motorsport Network reported that the issue would be discussed between the teams and F1 bosses at the F1 commission meeting in London on April 26, 2022.

One of the team’s lobbying for a solution to the inflation problem has been McLaren, whose team principal Andreas Seidl said:

"Despite being clearly a team that is very keen to make sure that we protect the budget cap, I think in special circumstances like we have at the moment, you need to be open for common sense dialogue."

"And that's where we stand in this specific discussion at the moment. Especially when unexpected things happen when the season is already ongoing. I think it's more than just common sense that you you need to find a solution, how to deal with that."

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Alfa Romeo F1 team principal disagrees with the review of the budget caps amid the ongoing season

Alfa Romeo F1 team principal Frederic Vasseur has disagreed with Brawn and Seidl regarding the review of the budget caps.

The Swiss team’s principal feels that it is not right to revise the rules amidst an ongoing season due to demands made by a particular team. Instead, he believes the effects of inflation on the budget could be considered for the future. According to him, it is important to adhere to the current rules at the moment.

Voicing his opinion on reviewing the budget caps, Vasseur said:

"You can’t change the regulations every single weekend because one team wants to spend more on development. Or because they are overweight, or because that they want to have an extra allowance for this, or for this, or for this."

"There is a rule, the most important thing is to stick to the rule. If the concept of inflation and the calculation of the inflation is not the best one, we can think about it for the future. Why not? But we have something in place, and everybody agreed when we signed the deal. Now we have to follow the rules."

With the rise in inflation worldwide, teams are finding it extremely difficult to monitor their financial spending. An added problem to the capped budget has been the rising logistical costs as a result of the Russia-Ukraine conflict.

Red Bull have already appealed to F1 to reconsider increasing the budget cap due to increased freight costs. However, this is a factor that the sports body will have to consider within the coming weeks.

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