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Amid Red Bull’s cost cap breach scandal, Ross Brawn’s words from 2019 reemerged. He warned of “serious consequences” if teams breach the cost cap.
On Monday the FIA announced that Red Bull has breached the 2021 budget cap, but they are yet to announce how the team will be sanctioned.
In the meantime, social media has been flooded with quotes from Formula 1’s managing director Ross Brawn, who back in 2019 said the teams will face serious consequences if they breach the cap.
“Financial regulations are the dramatic change in F1,” Brawn said at the FIA’s official reveal of the new financial regulations.
“We’ve tried for these in the past, and we’ve not been successful. I think the crucial thing about the financial regulations now is that they are part of the FIA regulations.
“So the sanctions for breaching financial regulations will be sporting penalties of some sort, depending on the severity of the breach.
“Whereas before we had the resource restriction, which was a gentlemen’s agreement between teams – well there’s not many gentlemen in the paddock I’m afraid, and that was a failure.
“But this has teeth. If you fraudulently breach the financial regulations, you will be losing your championship. So it has serious consequences if teams breach these regulations.”
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The Briton then agreed that monitoring the cost cap will be extremely challenging.
“We’ve got a very strong team of financial experts within the FIA and within F1, and we’ve sought outside support on this.
“Deloitte are one of the experts on sports finances, they’ve been very involved with the football world, and you can see the positive effect that’s starting to have.
“They’ve been pretty well thought out, but they will need development, like any regulation.
“I fully expect that we are going to have challenges in the future to implement this, but it’s absolutely essential for the good of F1 that we have a control on the finances and how much is spent in F1.
“They are essential for the well-being of F1. Budgets have been escalating. F1 is almost a victim of its own success in that the rewards of success are so valuable that the justification for investment keeps coming,” Brawn concluded.
