There's a small number of teams that keep winning and have most of the fans. Having the fastest car this year gives you a leg up next year, having the fastest car attracts the fastest drivers, and having the most fans gives you negotiating leverage over the governing body.
For example, Ferrari have so many fans and so much negotiating leverage they get given $100 million every year - a "heritage bonus"
Uncapped spending would mean all the other teams would either go bankrupt, or be completely uncompetitive.
There's a small number of teams that keep winning and have most of the fans. Having the fastest car this year gives you a leg up next year, having the fastest car attracts the fastest drivers, and having the most fans gives you negotiating leverage over the governing body.
For example, Ferrari have so many fans and so much negotiating leverage they get given $100 million every year - a "heritage bonus"
Uncapped spending would mean all the other teams would either go bankrupt, or be completely uncompetitive.