The FIA has completed its extensive review of compliance with the 2024 Formula 1 Financial Regulations. This process, conducted by the Cost Cap Administration (CCA), assessed the financial documentation submitted by every Formula 1 team and power unit manufacturer that participated in the 2024 season. It also covered those preparing for the new power unit generation debuting in 2026.
The evaluation spanned seven months and required significant effort due to the complex nature of the regulations. Furthermore, it involved a detailed examination of the technical development activities and associated costs undertaken by teams and engine suppliers. The FIA confirmed that all participants cooperated fully and acted in good faith throughout the review process, ensuring transparency and accuracy in their submissions.
Results of the 2024 Compliance Review
Following the review, nine Formula 1 teams were found to be fully compliant with the cost cap requirements for 2024. One team, AMR GP Ltd, was identified as having committed a minor procedural breach. The CCA clarified that this infraction did not involve exceeding the cost cap and was caused by unpredictable circumstances outside the team’s control. To resolve the matter, AMR and the FIA entered into an Accepted Breach Agreement on 29 September 2025.
All five registered power unit manufacturers were also found to be in full compliance with the financial regulations. This outcome reflects an increasing level of consistency across Formula 1 operations, showing that both teams and engine suppliers are aligning with the sport’s financial governance framework.
Ensuring Fair Competition and Financial Stability
The Financial Regulations were first introduced in 2021 to maintain competitive balance and ensure long-term financial sustainability within Formula 1. They aim to limit excessive spending, promote closer competition among teams, and secure the sport’s future. In 2023, similar cost regulations were extended to power unit manufacturers to control expenses ahead of the 2026 engine cycle.
The FIA highlighted that the review process remains time-intensive due to the sport’s complexity. It requires detailed analysis of financial transactions, cost allocations, and technical development programs. While the administration strives to finalize each annual review promptly, certain delays are unavoidable when assessing intricate financial data.
The CCA retains authority to investigate suspected breaches, initiate full inquiries if necessary, and apply enforcement measures. In minor cases, it may reach a settlement through an Accepted Breach Agreement, while significant violations are referred to the Cost Cap Adjudication Panel. For major overspend breaches, mandatory penalties such as points deductions and fines are applied.
Ultimately, the 2024 review confirms Formula 1’s growing adherence to responsible financial practices, strengthening both integrity and competitiveness across the championship.
