McLaren hit with cost cap breach fine from racing series it quit

McLaren has been hit with a fine of €400,000 for breaching cost cap regulations in Formula E, a series it quit at the end of the 2024/2025 season.

The Formula 1 world champion team competed in the all-electric Formula E World Championship between 2022 and 2025, taking in three seasons of the series.

With McLaren making its Hypercar debut in the World Endurance Championship next year, it elected to quit its Formula E activities to prioritise its new sportscar programme, as well as F1 and IndyCar.

Its final season was in 2024/2025, in which it managed five podiums with Taylor Barnard.

Despite exiting the series last year, Formula E has handed McLaren a €400,000 fine for breaching the cost cap.

A statement from Formula E notes that McLaren overspent by 4.54% of the cost cap, which equates to £555,628.

McLaren voluntarily notified the series of its overspend, which Formula E says was due to winding down costs for the end of the project and not performance-based.

The team has accepted the €400,000 fine to resolve the matter.

The full statement from Formula E reads: “Following the McLaren Formula E Team’s exit from the ABB FIA Formula E World Championship at the end of Season 11, the FIA confirms that its Cost Cap Administration has now completed the review of the Reporting Documentation supplied by the McLaren Formula E Team for the 2024-2025 ABB FIA Formula E World Championship as provided for by the FIA Formula E Financial Regulations.

“The review of the Reporting Documentation submitted has been an intensive and thorough process, and the competitor gave its full support in providing all the required information to assess its financial situation during this reporting period of the Financial Regulations.

“McLaren Formula E Team voluntarily notified the Cost Cap Administration of a minor overspend breach, of 4.54 % of the Cost Cap, prior to any formal investigation.

“The Cost Cap Administration recognises that the team has acted cooperatively and in full transparency throughout the process, that the overspend primarily arises from costs associated with 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.

“There is no accusation or evidence of aggravating factors or that the team has sought at any time to act in bad faith. 

“In these circumstances, the Cost Cap Administration offered to McLaren Formula E Team an ABA to resolve this matter. That offer was accepted by the Competitor.

“An Accepted Breach Agreement (“ABA”) dated 1st June 2026 was therefore entered into by and between the Cost Cap Administration and McLaren Formula E Team pursuant to Article 8.19 of the FE Team Financial Regulations (“Financial Regulations”).”