Sky Sports F1 commentator David Croft and ex-Formula 1 driver Karun Chandhok have disagreed over the budget cap, with Croft believing that it’s “ruining a lot of things in F1”.
The commentator believes that the budget cap has affected staff’s earnings and is “managed badly”, based on the fact it takes nearly a year to discover who’s breached the cap.
It wasn’t announced until October last year that Red Bull had exceeded the 2021 budget cap, whilst the 2022 results aren’t expected to be announced until September.
With inflation continuing to increase across the globe and with the budget cap itself being reduced, Croft is convinced that there’s an ongoing “brain drain” where staff are departing F1 to work elsewhere.
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“The cost cap is ruining a lot of things in F1,” said Croft on the Sky Sports F1 podcast.
“Staff recruitment is being affected because teams can’t pay the money that business outside of the sport can.
“Inflation is going up and the cost cap isn’t. There’s a brain drain with people leaving to work elsewhere. CFO are scratching their heads wondering if they’ve got everything right.
“It is a hugely complex piece of mechanism that, does anyone actually understand.
“I also think it is managed badly – why are we waiting a whole year to have auditors bring out the results, do it quarterly so teams know what’s going on and can make changes.”
Chandhok, though, believes the budget cap has been “positive” for the pinnacle of motorsport.
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He also disagreed on Croft’s view about employees pay, with him noting that those working in F1 get paid more than any other motorsport.
“On the whole I think cost cap is a positive,” Chandhok insisted. “I get the reasons why we have it, I get the challenges of policing it.
“Crofty where I’d disagree with you is on pay – if you contrast what someone in F1 is paid, compare that with any other form of motorsport like IndyCar or Formula E and F1 is paid a premium. Also compare with Jaguar Land Rover or Nissan or anyone in road car industry, F1 is paid a premium.”