Red Bull handed $7m fine and wind tunnel penalty by FIA for cost cap breach
Red Bull have been handed a $7 million fine and restrictions on car development time for breaching last season’s Formula 1 cost cap.
Following over two weeks of speculation, and criticism from rivals, after a ‘minor’ breach of the $145m limit in Max Verstappen’s maiden title-winning campaign, Red Bull were given their punishments on Friday at the Mexico City GP after reaching an ‘accepted breach agreement’ [ABA] with the FIA.
The ABA meant Red Bull had to admit their wrongdoing – with the team $2.2m over the cap after inaccurately excluding or adjusting a number of costs – but crucially brought with it an end to an F1 saga and less severe punishments.
The FIA acknowledged if a tax credit had been correctly applied Red Bull would have only been $0.5m over.
“There is no accusation or evidence that Red Bull has sought at any time to act in bad faith, dishonestly or in a fraudulent manner, nor has it wilfully concealed any information from the Cost Cap Administration,” read an FIA statement.
Red Bull have received both a financial and a minor sporting penalty, with a 10 per cent reduction in wind tunnel time over the next 12 months most damaging.
Red Bull were already set to have less time in their wind tunnel – where F1 teams test and perfect aerodynamics on their car – than their rivals due to winning this year’s constructors’ championship, which they wrapped up last weekend in the USA to follow up Verstappen’s second drivers’ title.
There is a sliding scale of wind tunnel runs in F1 depending on where a team finishes.
With their penalty, Red Bull are set to have 25 runs in their wind tunnel next season instead of 28. Ferrari, by reference, will have 30 runs if they finish second in the championship, and Mercedes 32 should they end up third as expected. The constructor in last place has 46 runs.
The $7m fine is not a reduction in their budget cap for next year, which is $135m.
Aston Martin, meanwhile, were also given their punishment on Friday for their procedural breach.
The team have been handed a $450,000 fine for failing to file accurate full year reporting documentation in respect of 2021. Williams took a fine for a similar breach earlier this year.
Red Bull were first accused of a minor breach – an overspend of less than five per cent [$7.25m] – of F1’s new-for-2021 cost cap on October 10, and had been in discussions with the FIA since that revelation.
The team – amid ‘cheating’ accusations from McLaren boss Zak Brown and fierce criticism from other rivals – have protested their innocence throughout.
$1.7m of their $2.2m overspend has been revealed to be owing to tax issues.
It has now been confirmed by the FIA that Red Bull made errors on budget cap costs such as catering, social security contributions, apprenticeship levies, unused spare parts for the car, and charging certain costs to Red Bull Power Trains.
The FIA pursued an ABA first as per the financial regulations, and Red Bull effectively entering a plea bargain ruled out the more severe punishments for a minor breach, such as points deductions or a reduction of future caps.
In already hugely controversial circumstances, Verstappen only beat Lewis Hamilton by eight points for last year’s drivers’ crown.
If Red Bull had rejected the FIA’s terms, the case would have gone to the cost cap adjudication panel and the full range of penalties would have been back on the table. After that, it could have even escalated to the International Court of Appeals; a dragging out of the scandal no one wanted.
