During his tenure as CEO of the series, Jamie Reigle targeted greater financial restrictions as one of his top priorities in response to the pandemic and the departure of three manufacturers.
Approved at the last meeting of the FIA World Motor Sport Council earlier this month, from October 1, 2022, racing teams will be allowed to spend 13 million euros per season.
This amount will increase to 15 million euros for the 2024-25 season and beyond to take driver salaries into account.
Meanwhile, powertrain manufacturers now have a €25m limit over two consecutive seasons to cover research and development, meaning a factory team will have a total of €51m. euros to spend over two years.
But Roger Griffiths, team principal of new independent entry Andretti Autosport following the short-term departure of powertrain partner BMW, felt a figure below €13m would have garnered support.
He told Autosport: “It obviously depends on the size of your organization as to how difficult the challenge is to get there.
“For us, we’re a fairly small organization, we don’t have particularly large overheads. So for us, I think that’s a very achievable number.
“We would have even potentially supported a slightly lower number, or for the drivers to be included in the €13m.”
Oliver Askew, Andretti Motorsport, BMW iFE.21, Jake Dennis, Andretti Motorsport, BMW iFE.21
Photo by: Andreas Beil
Each of Andretti Autosport’s programs must operate financially independently, so that the IndyCar effort does not support Formula E or vice versa.
Griffiths continued, “From Andretti’s position, we have two sources of income. One is sponsorship and the other is prize money. We run our program like a real business.
“We don’t have an investor group that just writes a big check every year to cover any losses we might incur. We have to collect all this money.
“If we only need, say, 10 million euros to race, that’s what we’ll spend. If we can’t, there’s no point in spending 13 million euros because we’re going to be in a hole.
“Andretti is a business. If we operate in the red, we will quickly exit motor racing. There is nothing we can do to compromise the longevity of the operation.
But when it comes to manufacturer limits, Griffiths warned that the cost cap would initially have little bearing on the new 470hp Gen3 regulations, as development is already well advanced.
The implications of the cost cap would instead only be realized for the powertrain’s second homologation cycle, starting in 2024-25.
He said, “Most of the money allocated for seasons 9 and 10 has probably been spent on early R&D. I don’t think it will be such a challenge. [straightaway].”
Andretti Autosport has formed a partnership with accountancy firm Crowe UK to ensure it complies with the new regulations.
#Andretti #Formula #team #reportedly #backs #cost #cap