Probably the biggest row of the Formula One season erupted during the Singapore GP weekend. Mercedes boss Toto Wolff accused Red Bull racing of “massively” overspending and in effect buying the 2021 and 2022 championships. Christian Horner defended Red Bull racing’s submission to the FIA yet Wolff upped the anti in response to Horner’s precise words.

Christian Horner was specific when he said, “It’s been through a process. It went in in March, in terms of [being] signed off fully by our auditors who are obviously one of the big three. And we believe that we are comfortably within the cap.

“So the FIA are following their process. We expect hopefully, and potentially this week, to hear not just us, but all of the teams, the outcome of that process.”

 

 

F1 Teams use International Auditors

The “big three” are international Adult and Accountancy firms who presumably wouldn’t want their reputations sullied by Red Bull cheating on the numbers with them subsequently signing them off.

Honer then clarified the only contact they’d had from the FIA in recent weeks was to clarify 6 points.

Wolff responded to this claiming, “It’s funny that Christian says that, because it’s been weeks and months that they are being investigated,” he said. “Maybe he doesn’t speak to his CFO.”

The FIA have been examining all the teams submissions for over six months given the deadline for Formula One’s governing body to receive the teams numbers for 2021 was in March this year.

 

 

Red Bull clarifications will make spend even smaller

When Christian Horner was asked whether the 6 clarifications would affect t their submission the Red Bull boss replied.

“It is significantly below. With the clarifications, we should be even further below….”

Red Bull Racing consultant told ORF he believed each time the FIA had visited Milton Keynes, “they were on their way from Brackley”, which is Mercedes team base.

This week the FIA are set to issue Budget Cap Compliance certificates to the teams on Wednesday and there was much media talk about what the penalties would be if Red Bull or any other team had breached the $145m spending limit.

 

FIA budget cap process

The FIA have a panel called the Cost Cap Administration (CCA). 

Were the CCA to find a team in breach the matter will be sent to the Cost Cap Adjudication Panel who are a panel of judges who make a decision on the nature of the breach and the penalties to be awarded.

The nature of the breaches are as follows according to the FIA

Nature of breaches

Procedural. Williams failed to make their submission on time and were awarded a Faine in March this season.

Minor Overspend breaches

An F1 team making a season return which shows an overspend of 5% or less over the budget cap will be said to have committed a ‘Minor Overspend Breach’.

A Minor Overspend Breach, once determined by the CCAP, allows the panel to impose a financial penalty or a Minor Sporting Penalty upon the offending team.

Material overspend breaches

An F1 team making a season return that shows an overspend of 5% or more over the budget cap will be said to have committed a ‘Material Overspend Breach’.

A Material Overspend Breach, once determined by the CCAP, allows the panel to impose a Constructors’ Championship points deduction, and can also impose a financial penalty as well as a Material Sporting Penalty.

The penalties for these breaches are broadly listed by the FIA as follows.

 

Budget Cap Penalties

Minor Overspend Penalties

the CCA can impose one or more of the following Minor Sporting Penalties:

Public reprimand

Deduction of Constructors’ Championship points awarded for the Championship that took place within the Reporting Period of the breach

Deduction of Drivers’ Championship points awarded for the Championship that took place within the Reporting Period of the breach

Suspension from one or more stages of a Competition or Competitions, excluding for the avoidance of doubt the race itself

Limitations on ability to conduct aerodynamic or other testing; and/or reduction of the Cost Cap provided that the reduction specified shall only be applied with respect to the year following the punishment being handed out.

Material Overspend Penalties

Deduction of Constructors’ Championship points awarded for the Championship that took place within the Reporting Period of the breach

Deduction of Drivers’ Championship points awarded for the Championship that took place within the Reporting Period of the breach

Suspension from one or more stages of a Competition or Competitions, excluding for the avoidance of doubt the race itself

Limitations on the ability to conduct aerodynamic or other testing

Suspension from an entire Competition or Competitions, including for the avoidance of doubt the race itself

Exclusion from the Championship

Reduction of the Cost Cap provided that the reduction specified shall only be applied with respect to the year following the punishment being handed out

The CCAP also has the power to order enhanced monitoring upon an F1 team once found guilty of a breach.

Decisions made by the CCAP can be appealed to the FIA’s International Court of Appeal (ICA).

This is a panel of judges, elected by the FIA’s General Assembly, will hold a hearing with the offending team, as well as any pertinent witnesses and/or officials, and can impose sanctions and burden of costs upon the offending team.

 

 

No FIA decisions on penalties this week

The first step in the process is to define the nature of the breach uncovered in the auditing process. This week only the teams identified as having committed no breaches will be issued compliance certificates.

Any team having deemed by the CCA as committing a breach will then enter another process which could end up months from now before the International Court of Appeal.

So we will only know this week who is in breach of the budget cap in the opinion of the CCA. We will not be informed whether the breach is minor or substantial as the CCAP will decide that in due course

But ‘no budget cap penalties’ will be handed out this week.

Unless all teams receive budget cap compliance certificates this row is set to run and run.

READ MORE: FIA “mole” prime suspect revealed

🗣️ "It's the best team in the pit lane."

Christian Horner praises his team and believes this could be their best year in Formula One 🙌 pic.twitter.com/gtKDdI8t7S

— Sky Sports F1 (@SkySportsF1) October 3, 2022