Red Bull found in breach of cost-cap rules for 2021
The FIA has declared that Red Bull was in breach Formula 1’s cost cap for the 2021 season, putting the team at risk of punishment.
Rumours emerged at the recent Singapore Grand Prix that Red Bull and Aston Martin had breached the financial regulations for last year, leading to denials from both teams. But when the FIA issued teams on Monday with their cost-cap compliance certificates for 2021, it revealed that nine of the
10 had stayed within the $145million maximum, with Red Bull the exception.
The FIA claimed that Red Bull’s breach was a “minor overspend”, which means it was within 5% of the budget cap for the year. Aston Martin was found responsible of a procedural infringement but did meet the cost cap.
The findings come after Red Bull expressed confidence in recent weeks that it had complied with the cost cap, even going as far as considering action for “defamatory” statements by rivals suggesting it had not. The team remained steadfast in the view that it had complied even after the
FIA announcement, saying in a statement that it was “surprised” and felt “disappointment”.
“Our 2021 submission was below the cost cap limit, so we need to carefully review the FIA’S findings as our belief remains that the relevant costs are under the 2021 cost cap amount,” read the statement. “Despite the conjecture and positioning of others, there is of course a process under the regulations with the FIA which we will respectfully follow while we consider all the options available to us.”
No details have been given on the extent of the Red Bull breach, but the FIA’S Cost Cap Administration is now set to discuss next steps with the team.
For a minor overspend, officials will discuss an Accepted Breach Agreement with Red Bull in which the team would need to admit guilt and terms of punishment be agreed. Should a deal not be struck, the case would be referred to F1’s Cost Cap Adjudication Panel, which could impose sanctions such as a public reprimand, a reduction of future cost caps, limitations on testing or even a points deduction.
But the case is set to ignite a big political battle, with both Ferrari and Mercedes previously stating that any cost cap breach had to be dealt with severely, particularly in the context of last year’s close title fight between Max Verstappen and Lewis Hamilton.
Hamilton said at last weekend’s Japanese Grand Prix, prior to the FIA’S announcement, that a breach would “question our values and the integrity” of F1, noting how the cost cap held back Mercedes’ developments last year. “If we had another half a million to spend, we would have been in a different position at some of the following races if we had brought another floor, which we could have easily done,” he said.