Small fine, reduction in wind tunnel time is first penalty handed down in Formula 1's cost cap era.
Mark ThompsonGetty Images- Red Bull Racing was found to have breached the 2021 Financial Regulations in what is termed as a “minor overspend breach.”
- Minor breach is defined as up to 5% over the $145 million cap that was in place for the season.
- The FIA on Friday announced a $7 million fine and a 10% reduction in aerodynamic testing time to Red Bull for the breach.
Formula 1 World Champions Red Bull Racing have been issued a $7 million fine and a 10% reduction in aerodynamic testing time for breaching the budget cap.
Red Bull Racing was found to have breached the 2021 Financial Regulations in what is termed as a ‘minor overspend breach’, which is up to 5% of the $145 million cap that was in place for the season.
Under the regulations Red Bull Racing was able to enter negotiations with governing body the FIA over an Accepted Breach Agreement.
That requires an acceptance of guilt from the team involved but means strict penalties—such as points deductions or suspensions—are no longer considered, as would be feasible if the process went as far as the formal cost cap adjudication process.
Discussions between the parties were ongoing at last weekend’s United States Grand Prix but were put on hold following the death of Red Bull co-owner Dietrich Mateschitz.
The terms of the ABA were delivered on Friday morning in Mexico after a settlement was reached earlier in the week. It was determined that Red Bull Racing submitted its accounts to the FIA below the budget cap but that it “inaccurately excluded and/or adjusted costs amounting to a total of £5,607,000 (approx. $6.5 million).
This meant that it had overspent by £1,864,000 (approx. $2.1 million) though the FIA noted that had Red Bull Racing applied the correct treatment of its Notional Tax Credit – of value £1,431,348 (approx. $1.7 million) – then it would have exceeded the cost cap by the revised figure of £432,652 (approx. $500,000, a 0.37% overspend).
Red Bull faced the possibility of a points penalty that could have cost it the 2021 Drivers’ Championship. Max Verstappen topped Lewis Hamilton by just eight points for the title.
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The FIA noted 13 areas in which Red Bull Racing had inaccurately excluded costs, relating to social security contributions, apprenticeship levies and a clerical error in relation to certain costs re-charged to Red Bull Powertrains, among other transgressions.
The governing body also outlined that Red Bull Racing “acted co-operatively “at all times and that “there is no accusation or evidence that Red Bull Racing has sought at any time to act in bad faith, dishonestly or in a fraudulent manner.”
The fine of $7 million must be paid within 30 days and is separate from Red Bull Racing’s current cost cap. The sporting breach will result in Red Bull Racing being docked aerodynamic testing time per Formula 1’s recently-introduced sliding scale.
Under the system the World Champions receive 70% of the mean wind tunnel and Computational Fluid Dynamics testing time, but Red Bull Racing will be docked 10%.
It means that it will only be permitted 63% of the mean time, compared to 75% for the second-placed team (currently Ferrari) and 80% for the third-placed team (currently Mercedes). The team last in the standings, Williams, receives 115%.
As for Aston Martin…
Aston Martin, meanwhile, was fined $450,000 for a procedural breach of the cost cap.
The FIA noted 12 areas in which the team had inaccurately excluded costs, relating to construction of its new factory, the development of a new simulator, and R&D tax credits among others.
Keyword: FIA Delivers Slap on the Wrist to Red Bull for Exceeding $145 Million F1 Cost Cap