As The Race reports, a radical overhaul of Formula 1's financial regulations is on the table as the F1 Commission prepares to discuss a proposal dubbed an “ADUO for teams”. Placed on the agenda by Williams team boss James Vowles, the spending catch-up mechanism aims to help squads escape what he characterizes as a restrictive “cost cap trap”. While the financial limit has successfully levelled the playing field in terms of basic solvency, Vowles argues it has simultaneously locked in legacy advantages that block smaller operations from challenging front-running squads.
The proposed system operates on a sliding scale, granting teams outside of the top four increased spending allowances, with the biggest financial freedom handed to those finishing at the bottom of the standings. The name draws direct inspiration from the ADUO (Additional Development and Upgrade Opportunities) framework currently applied to engine manufacturers, which provides extra spending, dyno hours, and homologation chances to power unit builders trailing the benchmark.
Originally, Vowles aimed to secure the necessary supermajority—support from the FIA, FOM, and six of the 11 current teams—to push the rule change through for next year. That level of backing has proven elusive. Only Cadillac, Alpine, Aston Martin, and Audi are currently supportive. Haas opposes the concept because it operates well below the spending limit, while Racing Bulls team boss Alan Permane confirmed he does not back the plan.
Despite the current division, the idea remains very much alive. Securing the backing of four teams total would be enough to implement the mechanism for 2028, positioning it perfectly to influence the new regulation era scheduled for 2030 or 2031. Vowles acknowledged that a compromise remains possible and that implementation will take time, noting the crucial backing of both the FIA and Formula 1 behind the scenes.
Beyond the Williams proposal, broader cost cap reforms are coming under intense scrutiny as well. Top squads, while unlikely to benefit directly from a catching-up mechanism, have their own grievances regarding how the financial limits operate—particularly when it comes to retaining staff. Operating under the cap forces strict limits on salaries, leading to teams losing top talent to outside tech companies and rival racing series. With inflation tied tightly to cost-of-living adjustments, salaries have struggled to keep pace.
This personnel drain has sparked serious discussions about separating spending on parts from spending on people. Currently, only the three highest-paid personnel are exempt from the cap. While past ideas to exempt up to 300 staff were sidelined to avoid neutering the cap entirely, alternative solutions have been floated. Mercedes boss Toto Wolff explained that his team previously pitched an allowance specifically to lift suppressed salaries for junior personnel, telling Sky F1: “We've pitched that to the FIA to give us an allowance, not for more front wings but an allowance for salaries to come up a little bit because the cost cap suppresses all of that. But obviously that didn't score a lot of brownie points.”
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