Red Bull chief Christian Horner opens up about speculated rise in cost cap, says 'our tech heads don't like Christmas parties'

Red Bull team principal Christian Horner has expressed his confidence in the FIA's current discussions regarding the cost cap. He sees it as a positive step forward for Formula 1's financial regulations. With the cap entering its fourth season, teams are restricted to spending $135 million. 

It is a figure set to remain unchanged for the upcoming season before adjustments are made in 2026. Reports suggest a significant increase in the cap to approximately $215-220 million, representing an increase of at least $80 million. 

However, the Red Bull chief emphasizes that this should not be interpreted as a relaxation of restrictions but rather a refinement of what expenses should be included. These discussions stem from the insights gathered over the past three years since the cap's inception in 2021.

"It's a matter of striking a balance. There's been a huge amount of learning through the cost cap. The most important thing for 2026 is that the employees don't bear the brunt of those changes. There's a sensible discussion about what's being included, what is to remain excluded and what is relevant to creating performance”, says Horner. 

'Our Tech directors don’t like Christmas parties', says Horner 

Previously under consideration for inclusion were staff entertainment and maternity pay, but after consultations between teams and the FIA, it has been decided that both will be excluded from the cap.

Further meetings are planned to fine-tune the list of inclusions and exclusions before the revised figure takes effect in 2026. Horner sees this as a delicate balancing act, acknowledging the need to strike a fair balance between cost control and ensuring the competitiveness and sustainability of Formula 1 teams.

Hoerner further said, "For example, does a Christmas party make your car go faster? Now, if that is to be included in the cap, of course, every technical director is going to want a front wing as opposed to a Christmas party, which is a bit tight.”

“I'm not saying that our technical director doesn't like Christmas parties, but he likes front wings! By and large, it's been a very productive and sensible discussion. It's now about finding that balance between what are exclusions and what is included within that higher number”, he further added.