Introduced for 2021, F1 now places spending limits on costs associated with the running of a team’s racing operations.

For 2025, that figure is around AUD $220 million and covers aspects such as car design, upgrades, and most staff.

It’s a complicated system with the onus on the FIA to police it as part of the sport’s regulations, just as it does the sporting and technical rules.

“I’m looking at the cost cap and it’s just giving the FIA a headache,” FIA president Mohammed Ben Sulayem told AP.

“So what’s the point of it?

“I don’t see the point. I really don’t.”

Financial regulations were introduced into Formula 1 for 2021 alongside sweeping changes to the commercial underpinnings detailed in the secretive Concorde Agreement.

That has equalised the playing field with a more even distribution of prize money among the 10 teams (11 from next season).

In turn, that has helped condense the field as teams are unable to simply spend their way out of trouble as they’ve done in the past, resulting in a more competitive on-track product.

However, it’s not all been plain sailing and there have been a number of breaches of the financial rules.

Red Bull overspent by AUD $3.4 million in 2021 for which it was handed a fine and a reduction in its wind tunnel allowance.

There have also been a number of procedural issues.

Nonetheless, the cost cap is widely viewed within the paddock as a net positive, with the value of teams soaring into the billions.

For next year, a new iteration of the financial regulations will be introduced, raising the cost cap to AUD $336.5 million but will encompass significantly more elements of each business.

While Ben Sulayem has voiced his opinion, the FIA president does not have the ability to make sweeping changes to eliminate the rules.

The process for making changes to Formula 1 regulations is defined within the Concorde Agreement which outlines the governance process.

That centres on the F1 Commission, which manages or proposes changes to the regulations with the exception of those pertaining to safety.

The F1 Commission is made up of representatives from the teams, the FIA, and Formula 1 Management (Liberty Media).

Any changes are then submitted to the FIA’s World Motor Sport Council to be voted on and incorporated into the regulations.

As such, Ben Sulayem alone does not have the authority to introduce change to the financial regulations without strong support from the F1 paddock.

With teams soaring in value, it’s highly unlikely that will be forthcoming.