Red Bull’s rumoured budget cap breach believed to be ‘material’

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People in the paddock believe that Red Bull’s rumoured 2021 budget cap breach is over 5%, which means the team could face harsher penalties. The FIA issues first statement.

Earlier today, Auto Motor und Sport and Gazzetta Dello Sport reported that there is talk in the paddock that Red Bull has breached the 2021 budget cap.

The story is now being widely reported across the F1 media. Now, Autosport reports it is believed that the breach can be classified as ‘material’, which is a harsher breach.

According to financial regulations a penalty for a ‘minor’ breach (less than 5%) can include a decision of points for the championship in which the breach took place, a suspension from a limited number of events, limitations on research and development and a reduction of the cost cap, while for a ‘material’ breach (more than 5%), a team or driver could be banned from an entire championship.

Since Verstappen finished only 8 points ahead of Hamilton in 2021, all of this could be very worrying for Red Bull.


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Autosport further reports that “the situation is seen by many in the paddock as a significant test case for [FIA president Mohammen] Ben Sulayem and his team as an overspend last year would have been beneficial not just for the 2021 world championship, but for this year’s as well, given the development programme for 2022 cars”.

Since the story broke, the FIA has issued a statement on the rumours.

“The FIA is currently finalizing the assessment of the 2021 financial data submitted by all Formula 1 teams,” an FIA spokesperson said.

“Alleged breaches of the Financial Regulations, if any, will be dealt with according to the formal process set out in the regulations,” the spokesperson concluded.

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