For a while now speculation has been rife around the paddock that Oracle Red Bull Racing had breached the 2021 budget cap. Christian Horner was adamant that his team were in the clear however the FIA released earlier this month that there was what was considered a minor overspend by the energy drink owned team.
After weeks of waiting for the penalty of the breach, it has finally been released and confirmed by Red Bull themselves after an “ACCEPTED BREACH AGREEMENT” spending £1.86 million over budget.
The resulting penalty is a fine of $7million and a 10% reduction in wind tunnel time for the 2023 season. This will heavily affect the development of next years car and also serve as deterrent for future budget cap breaches.
Red Bull inaccurately excluded and/or adjusted costs of £5,607,000 from its budget cap submission of £114,293,000 – which the FIA says constitutes an overspend of £1,864,000.
Had a ‘notional tax credit’ been correctly applied by Red Bull the breach would have been £432,652.
Other teams and drivers have been demanding that the penalty should be harsh. If the penalty wasn’t, then the bigger teams, with the availability of the extra cash, would take the extra 5% cost in their stride which would negate the whole point of the budget cap in the first place.
“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 (Red Bull Racing) 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.”
FIA
BREACH DOCUMENT IN FULL
