F1 may be the fastest motorsport, but it isn’t always the most competitive. The issue isn’t talent—some of the greatest drivers in history have gone without championships. Instead, it’s the disparity in car performance that often dictates success.
In contrast, when some of these same drivers switch to IndyCar, they find immense success. Juan Pablo Montoya, who never won an F1 title but triumphed twice at the Indy 500, knows this all too well.
“As a driver, you are so dependent on the car. Do you really think Alonso and Vettel have forgotten how to drive,” Montoya said back in 2014 when Mercedes was dominating the sport. “It’s just bad luck for everyone who is not in a Mercedes“.
However, McLaren CEO Zak Brown believes that the $135 million cost cap—introduced in 2021—has changed things.
That’s because, with spending restricted for the bigger teams, the field has bunched up closer together. In 2024 for instance, four teams fielded race-winners, making it one of the most competitive seasons in recent years.
“I think in Formula 1, everything matters because the field right now is covered by less than 2%,” the American said on The Intercooler podcast. “So I think maybe in the good old days when you had unlimited budgets and big discrepancies in spend, you could make it up in other areas. But now we all have kind of limited resources and the same level of resources, which is why you saw seven drivers win multiple races, four teams win races“.
While Brown was right about last year’s excitement, it’s also true that some of the least competitive seasons have come after the cost cap was introduced. In 2023, Red Bull dominated with an astonishing 21 wins out of 22 races, 19 of which belonged to Max Verstappen.
Though the bigger teams still hold an edge, the cost cap has undoubtedly helped smaller teams become more competitive than before.
How the F1 cost cap has helped teams like Haas?
Before F1 introduced the cost cap, many smaller teams struggled to survive due to their lack of competitiveness, with some, like Lotus, even declaring bankruptcy.
Today, the situation is vastly different. With F1’s overall valuation soaring past $18 billion, the sport’s growing popularity has also benefited the smaller teams.
Furthermore, with the cost cap in place, smaller teams like Haas have also become more competitive as the difference in spending between them and the bigger teams has massively reduced. Moreover, 2025 will also mark another milestone year for Haas, who will be able to meet the $135 million budget cap for the first time in the team’s history, largely due to their partnership with Toyota.
: For the first time, Haas is self-sufficient, reaching the F1 budget cap with sponsorships and prize money. Under Ayao Komatsu’s leadership, they’ve improved financials, secured 7th in standings, and are profitable, signaling a positive shift for the team.#F1 pic.twitter.com/GJ7XUVfvzI
— F1 Naija (@f1_naija) February 3, 2025
Haas team principal Ayao Komatsu cautioned fans that it will take time for the team to become competitive. However, he acknowledged that simply meeting the budget cap will gradually help them achieve their goal of fighting among the frontrunners.
While it remains to be seen if Haas will win races in the future, the sport is certainly moving in the right direction. Without the cost cap, teams like Haas wouldn’t even be able to dream of competing for victories, lacking the financial firepower of Ferrari, Red Bull, McLaren, and Mercedes.
