F1 grants Audi budget increase on entering the sport

Formula 1 will adjust its budget cap from 2026 to account for variations in salary levels across different countries where teams operate, according to a report by BBC Sport. This change is particularly significant for Audi, which is set to officially enter the sport after acquiring the Sauber team, headquartered in Switzerland, where salary costs are notably higher—35-45% more than in the UK or Italy, where most other teams are based.

The decision, which has been under consideration for over two years, was confirmed at the FIA’s World Motorsport Council. While Audi will have a higher budget cap than some competitors, the FIA believes this adjustment will ensure a fair financial playing field across all teams, given their unique operating costs.

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This reform is part of a broader restructuring of the budget cap system, which was initially introduced in 2021. The cap will increase from $135 million per team this year to $215 million by 2026.