FIA set to close F1 cost cap loophole with new rules

The FIA’s World Motor Sport Council has approved new regulations to stop non-Formula 1 personnel from contributing to F1 projects. Five new articles added to the 2027 operational regulations will mandate that teams completely separate their grand prix staff from external divisions. The move targets loopholes that previously allowed organizations to distribute engineer time and technical expenses across other business ventures, such as sailing or WEC, to bypass the cost cap.

Under the new rules, teams face strict technological asset restrictions and physical separation policies between divisions. Employees transferring to an F1 squad from other company sectors must serve a mandatory three-month gardening leave, while departing F1 staff cannot return for at least one year. These segregation protocols are expected to drive up operational costs and increase staffing numbers across multiple motorsport programs.