FIA tightens rules on Formula 1 team operations

The FIA, the governing body of Formula 1, has introduced stricter regulations to control the flow of personnel, resources, and information between Formula 1 teams and other parts of their corporate groups. These changes aim to ensure that all costs related to Formula 1 activities are fully accounted for under the budget cap.

New separation rules for employees

Starting in 2027, Formula 1 teams will be required to physically separate employees working on Formula 1 from those involved in other technological projects. This includes limiting the exchange of information and the movement of personnel between these groups. The goal is to prevent any indirect contributions to F1 programs by employees paid through non-F1 divisions.

Focus on parallel technological projects

The new rules target the technological divisions of major teams that operate alongside their Formula 1 activities. Teams like Red Bull, Mercedes, and Aston Martin have established specialized units such as Advanced Technologies, Applied Science, and Performance Technologies. Ferrari is also developing a sailboat project called Hypersail.

Concerns over budget compliance

The FIA is concerned that engineers working in these non-F1 divisions might contribute to Formula 1 development without their salaries being fully included in the budget cap. While no formal violations have been proven, the federation has already taken steps to track intellectual property and employee salaries linked to F1 activities.

Detailed new regulations for 2027

A twelve-page regulation will be introduced in 2027, requiring Formula 1 teams to have separate areas for F1 employees and other divisions. Access to these areas will be electronically tracked, with records kept for three years. Employees from different divisions will not be allowed to share the same offices, though some facilities like wind tunnels can be used by multiple groups, but not at the same time.

Restrictions on data and personnel movement

Data and technical results from non-F1 divisions will not be shared with Formula 1 teams. Employees moving between divisions will face strict transition periods. Those joining F1 from other areas must wait three months before working exclusively on F1 projects, while those leaving F1 must commit to non-F1 work for twelve months. Their salaries will still count toward the F1 budget cap for the year they leave.

Teams challenge the new rules

According to The Race, several teams have challenged the severity of the new provisions but have not succeeded in persuading the FIA to soften them. The reform may require manufacturers to reorganize their internal structures to comply with the new rules. The FIA aims to ensure fair competition by preventing teams from gaining an advantage through unregulated technical or human resources.