FIA announce cost-cap breach penalties for Red Bull

FIA announce cost-cap breach penalties for Red Bull

October 28, 2022

Red Bull fined $7 million and wind tunnel time shortened for upcoming season

Following an Accepted Breach Agreement (ABA), the Fédération Internationale de l’Automobile (FIA) have fined Austrian Formula One team Red Bull Racing  $7 million and reduced their aerodynamic testing time by 10% for the 2023 Formula One season as a result of breaching the budget cap during the 2021 season. 

It was revealed that Red Bull overspent by 1.6% during the 2021 season and the Austrian team have 30 days from the date of the ABA to pay the fine. The team had stated that the total amount spent in 2021 was £114,293,000, but following the investigation it was revealed that they incorrectly adjusted costs worth £5,607,000, with the FIA stating that they overspent by £1,864,000. The FIA also revealed that had Red Bull filed a ‘notional tax credit’ properly, the team would have breached £432,652. 

The team will also have their wind tunnel and computational fluid dynamics (CFD) time also reduced over the next 12 months, which is bound to affect their development and preparation for the 2023 and 2024 seasons.

In a statement released by the FIA, the governing body stated,

“Red Bull Racing was found to be in breach, however, the Cost Cap Administration recognised that Red Bull Racing has acted cooperatively throughout the review process and has sought to provide additional information and evidence when requested in a timely manner, that this is the first year of the full application of the Financial Regulations and that there is no accusation or evidence that RBR has sought at any time to act in bad faith, dishonestly or in fraudulent manner, nor has it wilfully concealed any information from the Cost Cap Administration. 

‘In these circumstances, the Cost Cap Administration offered to RBR an ABA to resolve this matter. That offer was accepted by RBR. An Accepted Breach Agreement (“ABA”) dated 26 October 2022 was therefore entered into by and between the Cost Cap Administration and Red Bull Racing pursuant to Article 6.28 of the FIA Formula 1 Financial Regulations (“Financial Regulations”).”

Ever since the revelation that Red Bull had overspent, multiple teams on the grid including the likes of Mercedes, McLaren, Haas, Ferrari have been vocal about a harsh penalty. Red Bull’s Max Verstappen had pipped Mercedes’ Lewis Hamilton to take home his first ever Drivers’ title in 2021 although it was Mercedes who took home the Constructors’ championship. 

Red Bull though weren’t the only team who made a breach, British team Aston Martin also made a procedural breach and are also awaiting a penalty decision from the FIA. Williams were another team who were also fined for procedural breach after failing to submit their annual spending on time. 

Aditya Chaudhuri

Hailing from the City of Joy, the things that bring me joy are cricket, a good non-tilt CS:GO session, F1 and movies.

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