McLaren fined for FE cost cap breach

McLaren has been fined €400,000 for breaching Formula E cost cap regulations, the FIA announced on Thursday.

As part of the completion of a review of the documentation provided by the team by the governing body's Cost Cap Administration – ahead of the completion of the review of the other teams because of McLaren's exit from the all-electric series last season – McLaren voluntarily notified the Cost Cap Administration of a 4.54% overspend, amounting to £555,628 (the cost cap being £12,246,766).

The FIA calls it a “minor overspend” and attributes it to “the orderly wind-down of the team following the decision to exit the Championship at the conclusion of Season 11, and relates principally to operational matters associated with that process,” noting that McLaren “acted cooperatively and in full transparency throughout the process”.

The FIA added that “there is no accusation or evidence of aggravating factors or that the team has sought at any time to act in bad faith”.

As a result of the breach, McLaren has entered an Accepted Breach Agreement (ABA) with the FIA to resolve the matter where it must pay €400,000 to the FIA within 30 days of June 1, the date of the ABA, and bear “the reasonable costs” incurred by the Cost Cap Administration from the process.

While McLaren's Formula E team, which competed as NEOM McLaren Formula E Team, no longer exists and its Bicester headquarters has been vacated, the holding company for the team, McLaren Electric Racing Ltd is still listed as operational according to UK government records and thus will be responsible for the fine.

This isn't the first time a Formula E team has been punished for a cost cap breach, although it is the most significant penalty in financial terms.

Jaguar and Nissan were both given fines and testing restrictions for breaching Formula E’s cost cap regulations during the 2022-23 season. Both were in relation to the teams’ cost cap and not the manufacturers’ one, which is separate although as powertrain manufacturers, both are also subject to.

Nissan was found to be in breach of the cost cap by 2% while Jaguar's breach was 0.6%. Nissan was fined €300,000 while Jaguar was fined €100,000 and both teams lost half a day of running at the 2024-25 pre-season test which took place at Jarama.