Red Bull Statement
That’s how it can be sometimes! You just want to call it a day, but then something comes up. Red Bull has just released a statement saying it is “with surprise and disappointment” at the decision.
“Our entry for 2021 was below the cost cap,” they emphasize. Therefore, one must now analyze why the FIA sees it differently. But you stand by your opinion that you have not exceeded the budget cap.
Here is the statement verbatim:
Many questions remain unanswered
As you can see, the FIA’s decision is finally here. But it feels like there are almost more questions than before… So we’ll have to wait and see what happens in terms of penalties and such.
Here in the ticker, it’s definitely over for today. My colleague Norman Fischer will take over on this for the next two days and we will meet again on Thursday.
Have a nice evening, a good start to the new week and see you then!
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Of course, we would now also like to hear what the teams involved have to say about the FIA decision. Unfortunately, there is currently no statement from Red Bull or Aston Martin.
The bulls have always made it clear in advance that they are firmly convinced that they have stayed below the cost cap. That assessment was clearly wrong.
How much did Red Bull spend?
This question also remains unanswered. However, since it is a minor violation, the amount must be less than five percent of the budget cap, so a maximum of about seven million dollars.
But the other teams have already said in recent weeks that even with this amount you could give yourself a huge advantage, if only a “minor” violation on paper.
However: Since the FIA leaves the amount open, it might as well be $100 or $1,000. So it’s all pure speculation.
What is it about? The possibilities are endless. For example, it could be a late submission, a missing response to a request, an incomplete submission, or the like.
Article 8.2 of the Formula 1 Financial Regulation states:
Examples of procedural violations are:
(a) submit a late submission;
(b) failure to submit interim reporting documentation for the interim reporting period;
(c) failure to cooperate with or respond to a written request for information, documentation, or clarification from the Cost Cap Administration within the timeframe specified by the Cost Cap Administration;
(d) delay, hinder, or frustrate the Cost Cap Administration’s exercise of its regulatory function, including any investigation conducted under the Financial Regulation, or any attempt thereto;
(e) submitting Reporting Documentation that is inaccurate, incomplete or misleading;
(f) failure to comply with the terms of an ABA;
(g) failure to comply with the requirements of Articles 1.8, 1.9 or 1.10;
(h) failure to submit any information or documentation required for a provision within the applicable timeframe set forth in that provision; or
(i) failure to submit an incremental list of used inventory in accordance with the requirements set forth in FIA Technical Guideline TD017, as renumbered and/or amended from time to time.
The full text of the FIA statement
FIA completes assessment under 2021 FIA Formula 1 Financial Regulations
– Nine teams confirmed below 2021 Cost Cap level
– Aston Martin in procedural error
– Red Bull Racing on procedural and minor overruns
The FIA confirms that its Cost Cap Administration has now completed the review of the reporting documentation submitted by each entrant who participated in the 2021 FIA Formula One World Championship in respect of the 2021 reporting period ending December 31, 2021.
The FIA Cost Cap Administration has issued certificates of conformity to seven of the ten participants:
– Aston Martin Aramco Cognizant Formula One Team is considered a procedural violation of the Financial Regulation;
– Oracle Red Bull Racing is considered a procedural and minor breach of financial regulations; other
– Williams Racing has complied with the Financial Regulations with respect to the 2021 Reporting Period, except for a previous Procedural Breach (which the Cost Cap Administration entered into an ABA with Williams in May 2022. This Procedural Breach was subsequently remedied by Williams in a timely manner , cooperative and transparent manner).
The review of the reporting documentation submitted was an intensive and thorough process, and all competitors have given their full support in providing the information required to assess their financial situation during this first year of the Financial Regulation. The FIA Cost Cap Administration notes that all participants acted at all times in a spirit of good faith and cooperation throughout the process.
The FIA also notes that in relation to this first year of application of the Financial Regulation, the intervention of the FIA Cost Cap Administration has been limited to reviewing the participants’ comments and there has been no full formal investigation started .
The FIA Cost Cap Administration is currently in the process of determining the appropriate course of action to be taken under the Financial Regulation in relation to Aston Martin and Red Bull and further information will be communicated in accordance with the Regulations.
What penalties would be possible?
The “procedural violation” is likely to be neglected, as it will likely only result in a fine at Williams. At least that would be my suspicion.
The situation is different when Red Bull exceeds it. The option ranges from a warning to the deduction of World Cup points for the team and driver.
But: A complete exclusion from the championship is not possible because it is only a minor violation.
What penalty threaten Red Bull and Aston Martin?
This is currently still open. Literally the FIA says:
“The FIA Cost Cap Administration is currently determining the appropriate course of action to be taken under the Financial Regulation in relation to Aston Martin and Red Bull and further information will be communicated in accordance with the Regulations.”
This means that a decision will now be made on an appropriate penalty and will be announced in due course. But that could take a while.