Red Bull’s initial budget, breach, rising restoration costs and more
According to the FIA report, Red Bull and Aston Martin breached the cost cap for the 2021 season, which was set at $145 million. While Aston Martin only had a procedural breach, Red Bull is guilty of a “minor” overrun of $7.2 million.
The FIA has introduced a budget or “cost” cap for the 2021 season. It limits the amount of money a team can spend during a Formula 1 season and is meant to make the sport more competitive. While the big teams should stop spending on their car after a point, it would be fair for the smaller teams. It was planned to be $175 million for 2021, but when the pandemic hit it had to be reduced to $145 million.
After his tenure, all teams followed the cost cap in 2021. However, as the FIA began to review the finances of all teams this year, reports began to circulate accusing Red Bull and Aston Martin of breaking the cap, which inevitably happened. Fans and teams expected the team to be disqualified from last season, and the next closest driver would be crowned 2021 world champions, as Max Verstappen won it with Red Bull. However, it is believed that the FIA will let them go with a financial fine.
Red Bull infringement and overspending on ‘restoration’ explained
The team released a statement early on, saying they had met the budget cap and there were no budget overruns. They also said a detailed inspection would be scheduled for the FIA’s findings. However, they also blamed the catering services for the team and said no extra money was spent on R&D of the car.
According to the team, a daily free lunch for a thousand people at their headquarters in Milton Keynes is a major factor in their overspending accounts. Although it has nothing to do with the development of the car, it counts as the team’s overall budget and could therefore be the reason for their overspending. However, nothing has been proven.
Analysts believe that if the team can prove that the budget cap was not exceeded for R&D of the car, they will be released with a monetary fine. However, other teams are not happy with this. Mercedes’ Toto Wolff warned earlier that if the team were fired with a financial fine, they (Mercedes) could also take the leap in the coming season. Meanwhile McLaren CEO Zak Brown has written a letter to the FIA calling out the team for “cheating” and suggesting a sporting sanction.
The teams are still waiting for the FIA to reveal the penalty both teams should serve for breaching the cost cap.