When F1 first introduced the price cap rule, they implemented it to keep teams together based on competition and resources. But the reality for teams like Williams is no different. The company from Grove has had difficulties in investing in recent years.
So despite rules that allow teams to spend up to $135 million a year, there may not be enough money to spend and maintain the team. In an interview with Speedcafe TV, team owner James Vowles spoke about the team’s financial problems. He said he needed to spend more than $150 million in CapEx to rebuild Williams and revamp the team.
Vowles talked about the $20 million in additional revenue Williams received for completing P7 in 2023. But he also explained the CapEx requirements the teams will need to stay at the top of F1. He said, “Isn’t $20 million a lot?”
“In the ordinary world, money is abundant. Unfortunately, in Formula 1, the owners have to keep $150 million. So it’s helpful, but it’s just a scratch, the truth behind it,” Vowles said.
The current cost cap rules have two parts: an operating expense cap and a capital expenditure (CapEx) cap.
Realizing that small teams were struggling, management increased CapEx spending from $6 million per year to $20 million. But that money is not enough for the England team. Especially since the group’s chief financial officer said the structures “look like something from the Ming Dynasty.“
While $20 million may sound like a lot, Vowles says it’s a small amount in the world of F1 and that “every $20 million was spent in the thousands.
What is James Vowles worth with his $150 million?
Vowles’ main goal, if he can spend the money he wants, is to get Williams’ infrastructure up to today’s standards. Williams was one of the best drivers in F1, dominating the track in the 80s and 90s. , Alain Prost and Ayrton Senna continued and suffered a fatal accident. 2023 was an even better year for Williams, as the driver was able to secure seventh place in the Constructors’ Championship with 28 points scored throughout the season.
With Vowles at the helm, the team hopes to continue to develop and achieve success in F1. They want to achieve continuous growth in their team and improve all elements of the space.
The British boss knows this is a long-term process and it will take several years to get back into title contention, rather than competing to avoid final death.
A better development structure and the freedom to spend may be the two main factors hindering the progress of old manufacturer shops.
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