When F1 first introduced the cost cap rule, they implemented it in hopes of bringing teams closer in terms of competition and resources. However, the reality couldn’t be more different for teams like Williams. The Grove outfit has been struggling for investment for the past few years. Thus, despite the regulations allowing teams to spend up to $135 million every year, they may not have enough money to spend and overhaul the team. Speaking recently to Speedcafe TV, team boss James Vowles revealed about the financial struggles for his team. He stated that he would need to spend at least $150 million as CapEx to rebuild Williams and bring the team’s setup up to date.
Vowles spoke about the additional $20 million prize money Williams got for finishing P7 in 2023. But he also shed light on the CapEx requirements they need to catch up to top teams in F1. He stated, “Twenty million sounds huge, doesn’t it?”
“In the normal world that is indeed a lot of money. Unfortunately, in Formula 1 the amount of money we really need to catch up to the front is 150 million. So it helps, but it scratches the surface, is the truth behind it”, explained Vowles.
The current cost cap regulation has two parts – The Operational Cost Cap and the Capital Expenditure (CapEx) Cost Cap. While the former deals with the salaries and the cars’ development costs, the latter pertains to the facilities and the general infrastructure of the team. The CapEx cap extends across several seasons, bringing the limit considerably down.
Seeing the smaller teams struggle, the authorities increased the CapEx cost cap from $6 million to $20 million per season. However, the amount is nowhere near enough for the British team. Especially since the team’s Head of Finance described their infrastructure “as if it came out of the Ming Dynasty.”
While $20 million may sound like a lot, Vowles claims it is a measly amount in the F1 world and that “the entire twenty million was spent within milliseconds.”
Where will James Vowles put the $150 million to use?
The most important thing in Vowles’ agenda, should he be able to spend the money he desires, will be to bring the Williams‘ infrastructure up-to-date with the current norms. Williams was once among the top dogs of F1, dominating the tracks in the 80s and 90s.
However, with changing times, the former employers of Nigel Mansell, Alain Prost, and Ayrton Senna could not keep up, falling terribly down the ladder. 2023 was a relatively better year for Williams as they were able to secure P7 in the constructors’ championship, owing to the 28 points their drivers secured all season.
With Vowles at the helm, the team wants to continue improving and make considerable strides in F1. They want to make steady growth within the team, improving each element within their setup. The British boss knows it is a long-term process and it will take years before they can once again engage in title fights instead of racing not to finish dead last.
A better development structure, aided with further leeway around the expenditure limits, might well be the two key factors limiting the former constructors’ champions’ progress.
