F1 2027: FIA shuts the cost cap loophole on side projects
The newsroomUpdated on October 21, 20264 minFrom 2027 the FIA demands strict separation between F1 teams and side projects: factories, IT systems, staff moves and cost cap penalties explained.
Key point
From 2027 F1 teams must separate their race staff physically and digitally from side projects, or the costs involved count three times, then six times in 2028.
The FIA World Motor Sport Council has approved this week new rules that, from 2027, police the line between Formula 1 teams and the side projects of their parent groups. The aim: stop development work being moved outside F1 to escape the cost cap. The Race published the details on 21 October 2026; Read Motorsport reported it a day earlier.
Why the FIA is tightening up
Teams backed by technology divisions have long been suspected of using non-F1 staff whose knowledge then feeds back into racing, without that work counting under the cap. The Race names the divisions of Red Bull, Mercedes and Aston Martin, plus Ferrari's yacht project, and stresses that nothing has been proven.
The FIA has already tightened the screws in several steps:
- in 2023, directive TD45 required intellectual property moved from a division to a team to be fully accounted for;
- later, no more pro-rata salary allocation for shared staff;
- then the duty to count the full wages of anyone contributing to the F1 team.
What 2027 brings
A new 12-page section of the Operational Regulations imposes strict separation of staff and IT systems.
- Factories: F1-only areas and non-F1 areas, access controlled electronically, access logs kept for three years for FIA inspection, separate offices.
- Restricted Shared Areas (wind tunnel, simulator, dyno): both groups can use them, but not at the same time and without any exchange of information.
- Common areas (canteen, corridors, car park): open to all, but no core work.
- IT: F1 and non-F1 systems fully segregated. Knowledge may flow from F1 to the side projects only in limited cases, never the other way.
Staff moves and penalties
Someone moving from a side project into F1 faces a three-month cooling-off period with no activity and no access to restricted systems, then signs an F1 contract with 12 months of exclusive F1 work. In the other direction, a new contract, new IT permissions and 12 months outside F1 are required; the salary still counts in that year's cap.
On penalties, Read Motorsport says the personnel costs concerned will count three times in 2027 and six times in 2028. The FIA's Cost Cap Administration audits teams and investigates suspected breaches.
A contested rule
According to The Race, several teams resisted the strictness of the text, but the FIA pushed it through. Sources close to the FIA say some teams will have to change how they work. The article quotes no one by name.
Frequently asked questions
What is the FIA changing about the F1 cost cap in 2027?
A new 12-page section of the Operational Regulations demands strict separation of staff and IT systems between F1 and the other activities of the same organisation.
What are the penalties?
According to Read Motorsport, the personnel costs concerned count three times in 2027 and six times in 2028. The FIA's Cost Cap Administration monitors and investigates.
Which teams are targeted?
The Race names the side divisions of Red Bull, Mercedes, Aston Martin and Ferrari, with nothing proven. The rule applies to the whole grid.
Sources
- The Race — FIA imposes draconian new rules to stop cost cap exploitation
- Read Motorsport — FIA moves to close F1 cost cap loophole with new 2027 rules
Written by the Karrazmotorsport newsroom, proofread before publication. For settings, always refer to your vehicle's manual. Our charter.
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