Sergio Perez has publicly supported James Vowles’ assessment that Formula 1’s cost cap is hindering smaller teams rather than fostering sporting equality. The Cadillac driver stated that the current financial regulations disadvantage newer and less established operations on the grid.
Perez highlighted the disparity in development pace, noting that while at Red Bull, upgrades were introduced almost every race weekend. He contrasted this with his current team, Cadillac, where the upgrade programme faces significant limitations.
He explained that smaller teams are inherently less efficient in their processes, leading to higher manufacturing costs for parts. This inefficiency means they effectively overspend within the same budget cap limits applied to larger, more established outfits.
“I think the cost cap these days is a lot more unfair for smaller teams because when I was at Red Bull, for example, we used to bring upgrades pretty much every weekend. You never heard anything about the cost cap. It was all about performance, bringing and throwing everything you could.”
Perez added that for smaller teams, the cost cap, “instead of making it closer between teams, creates these massive gaps that we currently have on the grid.”
While Perez indicated Cadillac’s major upgrade programme was concluded for the 2026 season, the team later confirmed minor floor and cooling upgrades would be evaluated at the upcoming United States Grand Prix in Austin.
James Vowles, Williams Team Principal, previously described the cost cap as a “trap” for smaller teams. He estimated that Williams spends 30 per cent more than top teams per part due to outdated facilities and less efficient manufacturing processes.
Williams has, however, made substantial investments in its infrastructure. The team reported record revenues of $324 million in its 2025 accounts and injected over $45 million into factory, hardware, and facility upgrades.
Vowles is advocating for a revised cost cap system, proposing a sliding scale similar to the Aerodynamic Testing Regulations (ATR). This would grant teams finishing lower in the Constructors’ Championship increased spending power.
A vote on Vowles’ proposal is scheduled for an upcoming F1 Commission meeting, with potential implementation targeted for the 2027 season.
In contrast to smaller teams, Ferrari is introducing its fourth and final major aerodynamic upgrade package for the SF-26 at the United States Grand Prix. This package includes a redesigned floor, revised sidepods, bodywork, and cooling outlets.
The F1 cost cap for the 2026 season stands at $215 million, an increase from the initial $135 million. This adjustment accounts for inflation and the inclusion of previously exempted costs.
The cap primarily covers performance-related expenditures, excluding driver salaries, the remuneration of the three highest-paid personnel, marketing, HR, legal, and travel expenses.
Christian Horner, former Red Bull team principal, has suggested that some teams continue to spend between $500 million and $600 million annually outside the regulated $215 million cap. He has called for the rules to encompass more spending categories.
The FIA has introduced new regulations for the 2027 season to prevent teams from circumventing the cost cap. These measures mandate strict physical and IT segregation between F1 operations and non-F1 divisions.
This clampdown aims to prevent staff from non-F1 technology divisions from contributing to the F1 project without their costs being accounted for within the cap.
Formula 1 CEO Stefano Domenicali has defended the 2026 regulations, urging against over-reaction to initial outcomes. He suggested that some criticisms from drivers and teams might be politically motivated.
