Oracle Red Bull Racing’s punishment for breaking the budget cap during the 2021 FIA Formula 1 World Championship season has been revealed, and they have been hit with a financial penalty as well as a reduction in aerodynamic testing time.
Red Bull were deemed to have occurred a minor breach of the spending cap, which meant they were less than five-per-cent above the $145 million allowed, and they have now agreed an ‘Accepted Breach Agreement’ with the FIA over their punishment.
The team has been handed a $7 million fine, which must be paid within the next thirty days, as well as ten per cent reduction of its aerodynamic testing time.
The FIA has stated that Red Bull did not intentionally act ‘in bad faith, dishonestly or in a fraudulent manner, nor has it wilfully concealed any information from the Cost Cap Administration’, and as a result, no harsher was deemed necessary.
The outcome means that Max Verstappen has now been confirmed as a two-time Formula 1 World Drivers’ champion as no points deductions were applicable.
The Statement in Full
“An Accepted Breach Agreement (“ABA”) dated 26 October 2022 has been entered into by the Cost Cap Administration and Red Bull Racing F1 Team (“RBR”) pursuant to Article 6.28 of the FIA Formula 1 Financial Regulations (“Financial Regulations”). The Financial Regulations are issued by the FIA and form part of the terms and conditions of participation in the FIA Formula One World Championship.
“The Cost Cap Administration recognised that RBR 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 which are a very complex set of rules that competitors were required to adapt to and that there is no accusation or evidence that RBR 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.
“The Cost Cap Administration considered it appropriate, in these circumstances, to offer to RBR an ABA to resolve this matter on the terms set out below, given the limited nature of the Procedural Breach in issue and the fact that the Minor Overspend Breach falls at the lower end of the