McLaren F1 News: Zak Brown & Co. Save “Several Millions” as F1’s $135 MN Budget Cap Becomes Child’s Play

Since the 2021 season, Formula 1 has changed drastically, mainly in the background. It was the introduction of the budget cap that changed the sport forever and is promised to make racing closer as the rule makes an impact in the coming years. Now, with the budget cap not reducing for the first time, some teams are getting better at tackling it and McLaren is one of them. In fact, thanks to a new addition to the McLaren Technology Center (MTC), Zak Brown and Co. are saving “several millions”.

The originally planned $175 million cost cap for 2021 was reduced to $145 in 2021 and was further reduced every year by $5 million till 2023 to bring it down to $135. Turns out, that is the ideal number for McLaren with all their upgrades and labor costs in mind. The Woking outfit has managed to retain its entire workforce, unlike other F1 teams, and also has had the freedom to experiment and upgrade as required while cutting costs, all thanks to one new equipment in the MTC, the Wind Tunnel.

When asked if McLaren has to choose between “employees or more parts”, Andrea Stella explained: “The two main items in the budget are labor and parts expenses. They are divided into the construction of the car and then the upgrades during the season. In terms of labor costs, we are doing well. We’re not one of the biggest teams in the field. To achieve this, we reduced operating costs through capital investments. One example is the new wind tunnel, which allows us to test new parts more effectively.

Stella then revealed how the wind tunnel was playing its part. He added, “The wind tunnel is now in our house. We no longer have to outsource the test department to Toyota in Cologne. That saves us several million. So far, we have not been forced to reduce personnel costs in order to have more upgrades. The current budget cap fits us like a tailor-made suit.”

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With the addition of the wind tunnel, McLaren is completely autonomous, which is saving them millions. Now that the Woking outfit doesn’t have to worry about its finances, the boss Zak Brown has different agendas on his mind.

McLaren boss Zak Brown demands more freedom after the cost cap restrictions

Brown feels F1 has become too restrictive with its budget cap and regulations. He understands the implementation of the budget cap, but the McLaren CEO argues that if the teams are adhering to the cost cap, then they should be given more freedom. Freedom to experiment and develop cars, however they like, which will surely add an interesting twist to the competition.

“I would like to see some more testing. With the cost cap now, my general view is to give us a little bit more freedom because we’re capped out on what we can spend,” Brown explained. “Maybe if the rules weren’t so prescriptive, you might see some different-looking cars. If you’ve got a cost cap, I think you can then free up some of the rules and let people develop how they want to develop because we’re all capped by how much you can spend.”

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The idea of seeing different-looking and performing cars in F1 is exciting. We can’t deny it. However, for now, with McLaren’s cost-cutting methods working effectively, they would want to take the fight to the top teams with the right allocations of funds, especially after a powerful end to the season.