Formula 1

The 2021 token ‘loophole’ that’s not actually a loophole

by Scott Mitchell-Malm
4 min read

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Racing Point’s Formula 1 rivals are trying to change a rule that allows the team to upgrade its gearbox and rear suspension for 2021 without spending development tokens.

In order to save costs amid the coronavirus pandemic, F1 agreed to carry over most mechanical components to 2021 and introduce a token system that massively restricts non-aerodynamic upgrades.

Teams can spend two tokens on upgrading their cars with certain components afforded a value of one or two tokens, which means they need to pick what they upgrade carefully.

Racing Point has already courted criticism – and a protest – from its rivals with its attempt to replicate Mercedes’ 2019 aerodynamic philosophy, and other teams are fighting to stop it gaining another advantage within the rules as well.

Motor Racing Formula One World Championship Hungarian Grand Prix Practice Day Budapest, Hungary

Gearboxes and rear suspension are among the parts that require a token spend to be updated for 2021, but that does not apply to teams that use year-old gearboxes and rear suspension.

Instead, a team using a 2019 gearbox and rear suspension in 2020 but wants to switch to the 2020 equivalent for 2021 will be allowed to do so without using development tokens.

This would apply to Racing Point, but also Red Bull’s junior team AlphaTauri.

Renault’s executive director Marcin Budkowski said ahead of the Hungarian Grand Prix that “the system has some flaws, unfortunately, there’s a loophole there that would allow a couple of teams to benefit from the system”.

Ferrari and McLaren have also voiced their frustrations over this imbalance, but it is not strictly a loophole.

The technical regulations have permitted this since the latest version covering the homologated parts process and token system was published in May.

And this is achieved through specific wording, rather than the rules not covering it off and creating a grey area.

The rules state that if a team is using a 2020-specification non-Listed Part this year and the supplying team uses development tokens to upgrade that part for 2021, then the customer team can only upgrade as well with the same token spend.

But Article 22.8.5b specifically notes that if a team has used the 2019 specification during the 2020 season and wishes to upgrade to the 2020 specification for 2021, “this change will be acceptable without the use of any tokens”.

Racing Point can therefore switch to Mercedes’ improved 2020 rear suspension while being allowed to retain its tokens to spend on other areas, giving it an inherent development advantage over other teams.

But a team like Haas, for example, is already using 2020 Ferrari non-Listed Parts, so it must either stick with what it has or spend development tokens to use a component Ferrari chooses to upgrade for 2021.

Motor Racing Formula One World Championship Hungarian Grand Prix Qualifying Day Budapest, Hungary

There is no ambiguity in the regulation, but Renault, Ferrari and McLaren contend that it does serve to undermine the purpose of the token system.

Ferrari team boss Mattia Binotto said: “The only point we are still debating, I think we are not fully happy that there are teams that eventually can upgrade their entire package from a 2019 to a 2020 package.

“That I believe would be unfair, because the season with two tokens is similar for everybody.

“We’ve got only two tokens and everybody should be limited to that one.”

Budkowski added: “This is something we’re discussing with the FIA and the other teams and we hope will be addressed.”

While it is not a loophole, the decision to permit teams to freely upgrade an older specification of rear-end architecture is illogical given the system is designed to reduce costs, and other teams are being restricted in how they pursue performance.

McLaren feels particularly aggrieved by this as it has had to sacrifice its development tokens in order to accommodate its change in engine supplier for 2021.

Motor Racing Formula One World Championship Hungarian Grand Prix Practice Day Budapest, Hungary

The team is switching from Renault to Mercedes and is not allowed to upgrade other areas of its car in order to make the necessary changes to facilitate the installation of a different engine design.

While the Mercedes switch should be a gain, McLaren has agreed to strict analysis from the FIA to ensure the chassis itself is not improved by the changes.

“We’re also not happy with that ruling,” said McLaren team boss Andreas Seidl when asked by The Race for his view on Article 22.8.5b.

“Because for us it’s simply not logic, because if we compare it with our situation we also had a contract in place in quite some time that we are doing the switch from the Renault power unit into the Mercedes power unit.

“And we have to accept that in the end the two tokens each team has available we have to use for that. We were happy to accept that compromise.

“If you compare that with another team doing an upgrade from 2019 to ’20 gearbox or suspension bits and being able to do that token-free, [it] just doesn’t make sense.

“But that’s something we bring up again, together with some other teams with the FIA and then [it’s] simply down to the FIA to comment on this.”

Seidl said there has been a “permanent dialogue” over this issue and believes there is scope for the rule to be changed because “there’s still a lot of work ongoing together with the FIA in terms of finalising details of the regulations”.

The fact this is not a loophole may help that process, because instead of arguing over something that has not been specified and is open to interpretation, Racing Point’s rivals will contend this is an explicit, written rule that was a mistake to include – if it can be convincingly argued that it goes against the intent of the homologated parts and token system, which is to reduce spending.

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