Greater financial regulation has been a top priority for championship chief executive officer Jamie Reigle during his tenure as the series works to stabilise following the departures of Mercedes, Audi and BMW.
The new rules will come into force on 1 October 2022 to cover the forthcoming Gen3 era, although manufacturers have commenced their development into the new 470bhp powertrain rules following previous meetings of the Technical Working Group.
As reported by Autosport back in July, the race teams will be permitted to spend €13 million per season for 2022-24 although there will be “certain transitional exclusions to address existing contractual commitments”.
This will increase to €15 million per season from the 2024-25 season and beyond but will critically then include driver salaries to facilitate “continued investment in talent” as well as the development of the likely introduction of a Gen3.5 EVO car.
For the powertrain manufacturers, they must operate with a limit of €25 million over two consecutive seasons to cover research and development plus “manufacturing activities and ongoing mandatory services to support Formula E [customer] teams”.
It is currently estimated that the biggest spenders are currently operating with a €40 million budget.
These watershed spending regulations have been approved following the 15 December meeting of the FIA World Motor Sport Council to “monitor and control spending levels of competitors, promote long-term financial sustainability for Formula E teams and manufacturers, the competitive balance of the championship and the sporting fairness.”
Formula E has previously introduced some measures in response to the global health crisis to combat the increased spending by reducing limits on personnel and consumable parts.
Oliver Askew, Andretti Motorsport, BMW iFE.21, Jake Dennis, Andretti Motorsport, BMW iFE.21
Photo by: Andreas Beil
Reigle said: “Over the past 18 months, we have worked closely with the FIA and all participants in…