Toto Wolff, Executive Director of Mercedes AMG Petronas F1 Team and Zak Brown, Chief Executive Officer of McLaren talk in the Paddock prior to the F1 Grand Prix of China at Shanghai International Circuit on March 23, 2025 in Shanghai, China. (Photo by Mark Thompson/Getty Images for McLaren)
Formula 1 Rumors

Formula 1 Rumor: Mercedes and McLaren under cost cap breach investigation (Cleared!) (Update)

Posted by AR1 staff

This rumor is downgraded to false today.  No F1 team breached the cost cap in 2024.

FIA Press Release:

The FIA confirms that its Cost Cap Administration (CCA) has now completed its review of the Reporting Documentation in respect of the reporting period that ended on 31 December 2024, submitted by each F1 Team that participated in the 2024 FIA Formula One World Championship and by each Power Unit (PU) Manufacturer registered to supply the new generation of PU that will be introduced from 2026.

The review of the reporting documentation was a very thorough and intensive process spanning seven months.

FIA confirms that the review process is particularly time-consuming considering both the complexities of the Financial Regulations and the necessity to assess technical aspects (and related cost treatment) of activities of development undertaken by F1 Teams and PU Manufacturers.

The FIA confirms that all F1 teams and all PU manufacturers gave their full support in providing the required information. The CCA notes that all F1 Teams and all PU Manufacturers acted at all times in a spirit of good faith and cooperation throughout the process.

The review findings are as follows:

F1 Teams review process results:

  • 9 F1 Teams found in compliance for 2024, and Procedural Breach identified for AMR GP Ltd (AMR).
  • The CCA confirms that although AMR has been found to be in Procedural Breach, it has not exceeded the Cost Cap level, and that the Procedural Breach was of a very minor nature, originated by unpredictable circumstances outside the control of the F1 Team. AMR and FIA have entered an ABA on 29 September 2025 to resolve the matter.

PU Manufacturers review process results:

  • All 5 PU Manufacturers found in compliance for 2024.

Aston Martin Procedural Breach Agreement

AMR GP Ltd (“AMR”) was found to be in Procedural Breach of the Formula 1 Financial Regulations notwithstanding the fact that their Relevant Costs during the 2024 Reporting Period were below the Cost Cap.

The Cost Cap Administration offered to AMR an Accepted Breach Agreement (“ABA”) to resolve the matter. The offer was accepted by AMR.

The Cost Cap Administration recognised that exceptional and unpredictable circumstances led to the Procedural Breach and that AMR have acted cooperatively and in good faith throughout the review process. No financial penalties were levied to AMR due to these exceptional and unpredictable circumstances and the Cost Cap Administration confirm that there is no accusation or evidence that AMR has sought or obtained any undue advantage as a result of the breach.

Pursuant to Article 6.28 of the Formula 1 Financial Regulations, the Cost Cap Administration entered into an ABA with AMR on 29 September 2025
A link to a summary of the terms of the ABAs as provided for by Article 6.32 of the Formula 1 Financial Regulations is below.

summary_aba_for_public_disclosure_-_amr (1)
October 27, 2025 

(GMM) Explosive controversy may be brewing over Formula 1’s financial regulations, with Sky Italia now claiming that both Mercedes and McLaren are the two teams suspected of significant 2024 cost cap irregularities.

According to rumors, the FIA’s Cost Cap Administration is quietly managing the situation behind the scenes in the exciting tail end of the 2025 world championship.

If true, the revelation would be seismic – particularly for McLaren, which won both the 2024 and 2025 Constructors’ Championships.

Sky Italia did not specify whether the alleged issues relate to overspending or procedural violations, but all indications suggest the FIA’s inquiry concerns discrepancies in financial submissions.

Potential penalties range from financial fines and aerodynamic testing restrictions – similar to those imposed on Red Bull in 2021 – to budget reductions for the following season, or even points deductions in either the Constructors’ or Drivers’ Championships.

The FIA has not commented, maintaining that all team submissions are still under assessment and that the official cost cap certification list will be published once the process is complete.

They look worried, should they be? Zak Brown, Chief Executive Officer of McLaren and Toto Wolff, Executive Director of Mercedes AMG Petronas F1 Team talk in the Paddock d (Photo by Sam Bloxham/LAT Images for McLaren)