Is Formula 1 facing the next big scandal? Red Bull and Aston Martin allegedly broke budget limit in 2021 – Mercedes and Ferrari insist on clarity
Formula 1 expects to have a definitive answer next week on whether teams have complied with the cost cap in the 2021 season, while rumours are growing in the paddock that two teams have broken the rules, Red Bull and Aston Martin.
The FIA has notified teams that it has completed its analysis of the accounts for the 2021 season and they are ready to release formal documents on the matter.
As part of the cost cap settlement process, teams have been told that on the fifth of October, the FIA will issue a certificate of compliance to teams that were under the cost cap of around $145 million last year.
Red Bull reportedly significantly over budget limit
Every team found to have exceeded the cost limit will, however, be subject to a further hearing at which the penalties set out in the regulations will be imposed. The FIA’s opinion on the matter is final, as the Financial Regulations state: “There is no right of appeal against a decision of the Cost Cap Administration to issue a Certificate of Compliance to a Formula One team.”
While the FIA does not comment on whether or not a team has breached the cost cap rules, several informed sources in the Formula One paddock have suggested that Red Bull and Aston Martin are in danger of not receiving their certificates.
Aston Martin are believed to have committed a minor breach of the rules, while Red Bull may have committed a more serious material breach. While Aston Martin merely stated that they were in ongoing negotiations with the governing body, Red Bull officials have already spoken out.
Red Bull not aware of guilt: “Have no concerns “
Red Bull team boss Christian Horner told ‘Sky’: “We submitted our figures in March. It’s a lengthy process with the FIA which is still ongoing. The certificates will be issued in the middle of next week. Our submission was below budget and we have confidence in our submission. There are always rumours and I’ve heard of alleged major breaches, but I wouldn’t be aware of that.”
Helmut Marko, Red Bull’s motorsport consultant, added to ‘ORF’: “This is an ongoing procedure and discussion with the FIA. We’re getting the details now. At the moment we can’t say anything about it. But we have no concerns whatsoever that anything serious could happen.”
An Aston Martin spokesman says only: “We have submitted our report for 2021. We are in discussions with the FIA and awaiting certification. “
FIA announces sanctions for possible offences
Facing mounting intrigue over the need for a cost cap hearing compared to last year’s figures, the governing body said the matter would be dealt with in due course.
“The FIA is currently finalising the assessment of the 2021 financial data submitted by all Formula One teams. Alleged breaches of the financial regulations will be dealt with in accordance with the formal procedure set out in the regulations,” a spokesman said.
Formula One’s regulations provide for a number of ways to penalise teams found to have breached the cost cap.
Does Max Verstappen face being stripped of his World Championship title?
For a minor infraction that is less than five per cent, or the equivalent of about seven million US dollars, above the limit for the 2021 season, penalties can include a public reprimand, a deduction of constructors’ or drivers’ championship points, exclusion from events, restrictions on aero testing and a fine.
More severe sanctions are possible in the event of a significant overspend, which applies from more than five per cent over the limit. These include the deduction of points in the drivers’ or constructors’ championship, exclusion from events, restrictions on aero testing, exclusion from the championship or a future reduction in the cost cap for the team concerned.
In a serious case, Max Verstappen could thus still be retroactively stripped of the 2021 world championship title, but it is questionable whether the FIA wants to cause a major scandal. The rival teams Mercedes and Ferrari, however, are calling for a strict penalty if the budget limit was exceeded, as Red Bull would have profited from this not only in 2021, but also in the current season.
Toto Wolff demands clear edge from the FIA
Mercedes team boss Toto Wolff calls for FIA president Mohammed bin Sulayem to take a tough stance and show “integrity and leadership” when teams have been shown to have blown the budget cap for 2021.
The situation is seen by many in the paddock as a major test case for bin Sulayem and his team, as more spending last year would have been beneficial not only for the 2021 World Championship but also for this year’s, given the development programme for the new 2022 cars.
Wolff, who discussed the matter with Ferrari team boss Mattia Binotto in Singapore on Friday, is a firm believer that the FIA must crack down if a team is proven to have overspent: “The cost cap is probably the most important development in the regulations to create a level playing field,” he says.
“And to allow teams that don’t have the full budget to catch up and put a cap on the spending of the top teams. So it’s hugely important for a demonstration that these rules are adhered to. “
Wolff: FIA President known for “robust stance “
“And I have no reason to believe otherwise. The FIA, Mohammad in particular, has shown a pretty robust attitude in enforcing all kinds of regulations. So I think if we’re talking about something big now, he’ll show the same integrity and leadership that he’s shown before.”
Asked whether a possible breach by Red Bull made last year’s title fight more difficult for Mercedes, Wolff declined to elaborate: “I don’t have any information at this point about whether they broke the rules and to what extent they did.”
“And if you commit a breach in one year, that means you probably commit a breach in the second year and possibly the third year. Once that’s sorted out, I’m sure there will be a lot of discussion about what the implications will be. But at this stage, it’s too early to comment on that.”
