Update III | Seidl also wanted a heavier punishment, he is ‘done with the Red Bull fairy tales’

On October 28, the FIA a statement announced that they have reached an ‘Accepted Breach Agreement’ with Red Bull. This confirms from both sides that the team has exceeded the budget cap by about 2.2 million dollars. The penalty includes a fine of 7 million dollars and a sporting penalty, namely ten percent less time to test the aerodynamics in, among other things, the wind tunnel.

Over the past few weeks, the Austrian team has been in talks with the governing body over the budget cap of the 2021 season. Exceeding the limit that the teams are allowed to spend can have serious consequences. Because Red Bull went less than five percent over the limit, the team will be fined and less time with the wind tunnel and with computer simulations. No World Cup points are taken away, so Max Verstappen’s 2021 title remains.

The FIA ​​posted a document confirming the penalty and the agreement, in which the governing body stated: “After the submission of all required documentation by all ten Formula 1 teams, the Cost Cap Administration (CCA, ed.) conducted the very first assessment process under the Financial Regulation. This new financial regulation is a very complex set of rules that competitors have to adapt to for the first time. Red Bull Racing was found to be in violation, but the CCA acknowledged that Red Bull acted cooperatively during the assessment process and sought to provide additional information and evidence when requested in a timely manner.”

In addition, the FIA ​​recognizes that this is the first year of full implementation of the budget cap and that there is no evidence that Red Bull has acted in bad faith, dishonest or fraudulently. In other words, the FIA ​​does not believe that Red Bull has intentionally hidden information from the CCA. The FIA ​​continues: “In these circumstances, the Cost Cap Administration has offered Red Bull an ABA (Accepted Breach Agreement, ed.) to resolve this matter.” The Austrian racing stable has accepted this offer. “Therefore, an Accepted Breach Agreement of 26 October 2022 has been concluded by and between the Cost Cap Administration and Red Bull under Article 6.28 of the Formula 1 Financial Regulation.”

The sanctions Red Bull agrees to

The FIA ​​followed in their extensive statement regarding the sanctions for Verstappen’s team that Red Bull agreed to the penalty the FIA ​​has set for exceeding the budget cap. The penalty means that Red Bull must pay a $7 million fine to the governing body. In addition, the team will have less time to test aerodynamics during the next 12 months after Red Bull has agreed to the ‘Accepted Breach Agreement’. For the Austrian racing team, exceeding the budget limit therefore has a financial consequence, and a consequence for the development of the car of 2023.

Red Bull will follow with a press conference at 18:30, must pay the fine within 30 days

Red Bull itself will hold a press conference at 6:30 PM Dutch time regarding the agreement the team has reached with the FIA. They must pay the fine of 7 million dollars to the FIA ​​within 30 days. In addition, the decision has now been made, confirming the Accepted Breach Agreement. After this there is no more room for discussion, the case is closed.

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Update | Horner discusses ‘draconian punishment’ that will have major influences for Red Bull

At 6:30 pm on October 28, Christian Horner gave a press conference explaining Red Bull’s views regarding the penalty the team will receive from the FIA. For example, he finds that seven million dollars ‘a lot of money’ and he finds the ten percent reduction in aerodynamic test time absolutely ‘draconian’. According to Horner, this could allow Red Bull to be 0.25 – 0.5 seconds slower from 2023.

The exceeding of the budget cap, according to Red Bull, was due to the misunderstandings of some categories of finance. For example, some categories would count in the budget ceiling, but Red Bull did not think so, such as paying staff under the sickness benefit. Taxes also went wrong. If Red Bull had received the tax refund, they would only be half a million above the ceiling.

‘Not a penny from the excess has gone to the car’

The penalty was still not enough, according to the competitors. ‘It will never be enough. Even if you burn down our wind tunnel, it’s not enough,” Horner said. Over the past few weeks, many allegations have been thrown at Red Bull. They would have cheated, and there would indeed have been extra money for the development of the car. Horner confirms that this is not the case. “Not a penny of the excess has gone to the car,” said the Red Bull team principal.

Team could choose to waive the ABA but didn’t

Red Bull regrets the enormous influence that they believe the sporting penalty in particular can have on their performance in 2023. The team will have less time to test their parts in the wind tunnel, which could benefit competitors such as Mercedes and Ferrari. Red Bull could have chosen to waive the ‘Accepted Breach Agreement’, but did not. “The penalty could have been even higher,” explains Horner. ‘What is taken away from us in wind tunnel time, we gain in motivation.’ Red Bull therefore seems to convert the now completed case into motivation to still have the best car next year.

Update II 21:06 (28/10) | Marko finds penalty at the limit, thinks he can still be competitive next year

Helmut Marko agrees with Horner that the penalty is harsh, but Marko finds the penalty just at the limit. “We still believe that we can be competitive next year, despite the penalty with less wind tunnel time,” the Austrian explains to the German branch of Sky Sports.

As Horner explained, no money from the budget overrun went into the development of the car, which Marko also points out. “If it’s the catering costs, then it’s clear that it’s not going to develop the car. Costs were included for a million dollar heart surgery for an employee, and we don’t think she was at work,” Marko reported.

Update III 22:04 (28/10) | Seidl also wanted a heavier punishment, he is ‘done with the Red Bull fairy tales’

In addition to Toto Wolff, McLaren team principal Andreas Seidl also wanted a heavier penalty for Red Bull. The German is done with the beautiful stories of the Austrian racing stable, he indicated at the Italian branch of Sky Sports. Wolff had previously indicated that he would have liked a heavier penalty, although he did think that the financial penalty in combination with the sporting penalty would deter. According to Wolff, the damage to reputation is now also doing its job. According to both team bosses, it is good that nothing has been covered up.

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