At first glance Formula 1 might look like a billionaire boys’ club, where the cash reserves are endless and the supplies infinite. And to a large extent, that’s true.
But the motorsport series has a budget cap now which was introduced to level the playing field, to allow challenger teams to take on the might of Ferrari, Mercedes and Red Bull without draining the bank entirely.
And this year, in 2024, it looked to have resulted in the first meaningful shift in the tectonic plates of Formula 1 since its introduction in 2021.
Because McLaren, headed up by Zak Brown and with Lando Norris and Oscar Piastri in the car, won the F1 constructors’ championship for the first time since 1998.
McLaren on a roll
Securing the title in Abu Dhabi on Sunday represented the first win by a team other than Red Bull or Mercedes since 2009, when Brawn was the surprise victor.
But the triumph for McLaren isn’t just a huge win against the major players; it’s a monumental blow to the big three.
The prize money for the team title diminishes depending on finishing position in the championship, although Ferrari get legacy payments for simply being themselves.
Red Bull falling off a cliff to third will hugely damage their payment in the off-season, potentially limiting their ability to spend their way back into contention. They will need to fund the shortfall themselves.
On the other hand McLaren and Ferrari occupying spots traditionally held by Mercedes will also be a blow to the coffers of the Silver Arrows.
Why does this really matter?
Well the F1 2025 season will be the final one under the current set of rules before 2026 sees mass change – including the inclusion of General Motors and Audi on the grid.
It means next season will partly, using elements of the $145m budget cap, be spent developing a totally different car ahead of the regulations changes.
Streamlined success in F1
And for the more streamlined teams who cannot always hit the existing cap, the smaller value in payment to the likes of Red Bull and Mercedes will offer some hope that they will, next season, close the gap.
“We’re going into next year at full strength,” McLaren chief Brown said after the title win in the United Arab Emirates.
“The team is not: ‘let’s just tweak a little here and there. The car is pretty good.’ We’ve got some stuff on next year’s car that is like ‘brave risk’.”
Financial security promotes risk taking in Formula 1, and it is why we have seen controversial innovations from the big spenders – such as Red Bull’s shaft panels and Mercedes’ steering devices.
The reality is that Formula 1 is a billionaire boys’ club and always will be, but severe limits on spending have at least closed the field.
And in doing so the sport has seen a constructor win the team title that a number of years ago would have been all but impossible.
F1 continues to develop, always at the forefront of innovation, but money talks. Traditionally smaller players getting more help will ensure they too can talk the talk on the starting grid of the opening race of the 2025 Formula 1 calendar, which is only 95 days away.