As Formula One prepares for a new Grand Prix, the FIA has announced that it has officially reached an agreement with Red Bull on the budget cap issue!
What had happened
As is well known, two weeks ago, the Federation through an official note had communicated that two teams had not respected the budget cap. Let's talk about Red Bull and Aston Martinalthough the reasons are different. There Milton Keynes stables in fact, it exceeded the maximum expenditure ceiling (without going beyond 5%), while Aston Martin committed procedural irregularities. After various meetings, especially in Austin between Ben Sulayemm and Christian Horner, a definitive agreement has been reached between the parties.
The decision of the FIA
The FIA anticipated Red Bull who had scheduled a late afternoon press conference announcing Red Bull's sanction for violating Formula 1's financial regulations during the 2021 season. The team was fined $7 million and given a 10% reduction in limited wind tunnel development time.
The Cost Cap Administration has acknowledged Red Bull's cooperation throughout the expense review process and the fact that he tried to provide additional information and evidence when requested in a timely manner. We remind you that 2021 was the first year of application of this rather complex regulation. In all of this, according to the FIA, Red Bull has not demonstrated that it is acting in bad faith, dishonestly or fraudulently, nor has it intentionally withheld any information from the Cost Cap Administration.
For this reason, given the circumstances, the Cost Cap Administration has deemed it appropriate, offer Red Bull an ABA (Accepted Infringement Agreement), i.e. a bargaining mechanism already present in the regulation, available both in case of procedural violation and "Minor" violation. Just like any form of plea bargaining in the rest of the world, this has enabled the Cost Cap Administration to agree with a team that has committed the infraction what its offense and penalties are.
The official FIA note
The FIA revealed that Red Bull had overspent by £1,864,000 (approx. 1,6%). Here is what the FIA note communicates.
"Following the submission of all required documentation by all ten Formula 1 teams, the Cost Cap administration conducted the first ever review process under the financial regulation of the FIA Formula 1 World Championship. These new financial regulations are a very complex set of rules that competitors had to comply with for the first time."
“Red Bull Racing has been found to be in breach, however, the Cost Limit Administration has acknowledged that Red Bull Racing has acted cooperatively throughout the review process and has sought to provide additional information and evidence when so requested. timely, that this is the first year of full application of the Financial Regulation and that there are no allegations or evidence that RBR has at any time sought to act in bad faith, dishonestly or fraudulently, nor has it intentionally withheld any information from the Cost Administration Postal Code. Under these circumstances, the Cost Cap Administration has offered RBR an ABA to resolve the matter. This offer was accepted by RBR."
The sanction
In the details, in addition to the expense items, the penalties that we have previously enclosed in a few lines are also listed. "RBR receives a Minor Sporting Penalty in the form of limitation of RBR's ability to conduct Aerodynamic Tests for a period of 12 months from the date of execution of the ABA through the application of a 10% reduction of the C coefficient used to calculate the individual limits of the Limited Wind Tunnel Tests (RWTT) and Limited Computational Fluid Dynamics (RCFD) applicable to each Team, as set out in Article 6 of Appendix 7 of the FIA Formula 1 Sporting Regulations. For example, if the coefficient C, based on the league position of RBR, is 70%, the new effective value of C will be: CNEW=70% x (1-0,10) = 63,0%; and c) RBR pays the costs incurred by the Cost Cap Administration in connection with the preparation of the ABA."
Furthermore "RBR must pay a financial penalty of USD 7.000.000 to the FIA within 30 days from the date of execution of the ABA (Article 9.5 of the Financial Regulation). implementation of the ABA (Article 9.5 of the Financial Regulation)” also supporting the costs for the preparation of the ABA. “RBR bears the costs incurred by the Cost Cap Administration in connection with the preparation of the ABA.”
Chapter closed…maybe
With this ruling, the telenovela therefore seems ready to end, although it really needs to be seen if Ferrari, Mercedes e McLaren they will or will not do something. The three stables, via statements from their team principalsthey had promised to intervene if they considered the fine too low for the caliber of the offence. The chapter could therefore also be considered closed, but the last word has not yet been said.
Source: FIA
