The FIA has officially revealed the details of Red Bull’s 2021 budget cap breach, and the penalties that were handed to the team.
The FIA has officially released details on Red Bull’s 2021 budget cap breach, and has confirmed that the team has agreed to the ‘Accepted Breach Agreement’, which basically means they admit they were guilty.
“Following the submission of all required documentation by all ten Formula One Teams, the Cost Cap Administration carried out the first ever Review process under the FIA Formula One World Championship Financial Regulations. These new Financial Regulations are a very complex set of rules that competitors were required to adapt to for the first time,” the FIA’s statement read.
“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.
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“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”),” the statement concluded.
As previously rumoured, the FIA’s full verdict reveals the overspend was committed in four main areas: catering, sick leave costs, unused spare parts and United Kingdom tax rebate issue.
The team has received a $7m fine, which is excluded from the cost cap, and their wind tunnel and computational fluid dynamics (CFD) testing time will be reduced by 10% over the next 12 months.
Red Bull is expected to hold a press conference explaining the whole situation today.
You can read full details on Red Bull’s breach, and the summary of the terms of the ABA here.