Even Red Bull is in the dark after 'vague' report it breached F1 cost cap: Medland

The first report into F1's cost cap should have been a chance to examine how it's working, but so much is left unknown — even to teams — that fans are understandably cynical, writes Chris Medland

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Red Bull pit garage in the dark

Red Bull

Isn’t it funny, how the build-up to the Singapore Grand Prix saw two teams widely referenced by multiple paddock sources as having not complied with the 2021 Financial Regulations. Two teams named by each source as Red Bull and Aston Martin.

Christian Horner came out fighting. He said the comments from Mercedes and Ferrari – who both spoke about the need for serious sanctions if Red Bull had breached the cap – were “hugely defamatory”. When the respected BBC journalist Andrew Benson asked which particular comments Horner was claiming were defamatory, the Red Bull team principal even questioned Benson’s impartiality.

But based on the FIA findings that were finally released today, those statements were proven to be true. At least, they are if the FIA is correct.

The FIA’s announcement has left so much unanswered for people to run with

Red Bull is still fighting. A statement from the team on Monday night in response to the findings read:

“We note the findings by the FIA of ‘minor overspend breaches of the Financial Regulations’ with surprise and disappointment.

“Our 2021 submission was below the cost cap limit, so we need to carefully review the FIA’s findings as our belief remains that the relevant costs are under the 2021 cost cap amount.

“Despite the conjecture and positioning of others, there is of course a process under the regulations with the FIA which we will respectfully follow while we consider all the options available to us.”

Max Verstappen celebrates winning the 2021 F1 championship on the podium at Abu Dhabi

FIA says Red Bull breached the cost cap in title-winning 2021 season, but we don’t know how much it overspent

Kamran Jebreili/Getty Images

The problem is, even as I sit here and try to organise my own thoughts, there is still so much that is unknown.

One Red Bull source told me the team is waiting for further discussions with the FIA because “info is still very vague at the moment”, and they’re right.

The governing body has so far stated that “Oracle Red Bull Racing is considered to be in procedural and minor overspend breaches of the financial regulations”, while Aston Martin is only in procedural breach and within the cap itself.

I understand from Aston Martin’s perspective, the issues centre on a number of administrative accounting protocols, with the overall expenditure below the cap. We’ve already seen Williams agree to a $25,000 (£22,600) fine for being late with its submission in March – also a procedural breach – so a fine seems likely there too.

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But for Red Bull, how harsh do you get? Sources suggest the overspend could relate to catering and sick pay but the rules are hugely complex and the FIA will also want to work out if it feels any of the breach is due to intentional overspending or the result of a mistake given Red Bull’s claim it was below.

And you have to maintain an open mind, because the FIA’s announcement has left so much unanswered for people to run with. Only stating it is a minor overspend breach and giving no further detail means Red Bull could be guilty of spending more than $7million (£6.32m) over the cap, or similarly it could be over to the tune of a few dollars in a couple of areas.

That was first reported by one of the tabloid newspapers more than a week ago, and yet last Wednesday at the 11th hour the FIA stated it hadn’t yet completed its review of the submissions and pushed back the announcement to today. An announcement that followed very closely what had been openly talked about for weeks.

The reasons for that remain unknown, but they hardly paint the picture the FIA is meant to be painting right now.

The cost cap is supposed to be levelling the playing field in Formula 1, and while it was always going to become a key battleground, the first year requires a firm and clear response from the governing body to ensure the whole process has a chance of working.

Overhead shot of Max Verstappen leading at the start of the 2022 Emilia Romagna GP

Cost cap is a crucial part of F1’s new regulations

DPPI

Instead, fans are left wondering if deals have already been made behind the scenes and get-out clauses have been sought in order to find ways to avoid major penalties that could have a material impact on the championships that have now been decided after a turbulent past 12 months for the FIA.

And that cynicism could be wholly misplaced if indeed Red Bull’s overspend is extremely minor and easily explained, but despite “transparency” being a buzzword around the cost cap, the lack of it from both sides means it is fully understandable.

These accounts were provided over six months ago. By now, the FIA should have been in a position to give more detail and a clear process that will follow. Instead, even the teams that have been named as in breach don’t know what comes next, let alone fans of the sport.

The FIA says it “is currently determining the appropriate course of action to be taken”, and while it does that, Red Bull finds itself under extreme fire.

Finding out whether that is justified or not will have to wait even longer. How long? Your guess is as good as mine.

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