The FIA (International Automobile Federation) has announced the results of the review of the reports submitted by each team regarding the 2021 F1 budget cap. Compliance certificates were issued to seven teams, excluding Red Bull, Aston Martin and Williams.
F1 will introduce a budget cap in 2021 with the aim of eliminating the difference in competitiveness due to the difference in financial strength between large and small teams. The first year was capped at $145 million.
Initially, the FIA was supposed to announce the examination results on October 5 (Wednesday), but it was postponed to October 10 (Monday). That has sparked speculation that Red Bull and Aston Martin will face stiffer penalties for allegedly exceeding the budget cap.
On October 10th (Monday), the FIA announced the results of the examination of the report documents. Seven teams were issued certificates of compliance, and three announced violations.
Only Red Bull Racing actually went over budget. The FIA said it was still “minor”. Aston Martin said it was a procedural violation, while Williams said it was redressing a $25,000 (£25,000) fine for procedural violations that had already been paid in May.
Below are the results of the 2021 F1 financial regulations report document review announced by the FIA.
FIA COMPLETES REVIEW UNDER THE 2021 FIA FORMULA 1 FINANCIAL REGULATIONS
• 9 teams confirmed to be under 2021 cost cap
• Aston Martin breached procedure
• Red Bull Racing has procedural and minor excess violations
The FIA (Federation Internationale de l’Automobile) has completed its review of the reporting documents submitted by each competitor participating in the 2021 F1 World Championship for the 2021 reporting period ending December 31, 2021. Confirm that you have done
The FIA Cost Cap Administration issued certificates of compliance to 7 of the 10 competitors.
The Aston Martin Aramco Cognizant F1 Team has been deemed in breach of its financial rules procedures.
Oracle Red Bull Racing is deemed to be in procedural and minor excess breach of financial rules.
Williams Racing is in compliance with its financial rules for the 2021 reporting period, excluding previous procedural breaches in which the Cost Cap Administration entered into an ABA with Williams in May 2022. This procedural violation was subsequently rectified by Williams in a timely, cooperative and transparent manner.
The review of submitted reporting documents is a focused and thorough process and all Competitors are fully committed to providing the information necessary to assess their financial situation in the first year of this financial regulation. supported. The FIA Cost Cap Administration notes that all competitors have always acted in a spirit of good faith and cooperation throughout the process.
The FIA also noted that, with regard to the first year of application of the financial rules, the intervention of the FIA Cost Cap Administration has been limited to a review of submissions made by the competitors and a full formal investigation has not been initiated. Also note
The FIA Cost Cap Administration is currently determining the appropriate action to be taken under the financial rules regarding Aston Martin and Red Bull and will be informed in detail according to the rules.
Note to Editors
The FIA Formula 1 World Championship has introduced financial rules from the 2021 season following the unanimous approval of the competitors. The intent of the financial rules is to limit championship spending in order to ensure the long-term viability of the championship and promote performance convergence among competitors to create more exciting racing. It is in.
The regulations are very complex, reflecting the complexity of the sport as a whole. The process by which competitors’ submissions were audited by the FIA Cost Cap Administration required a significant amount of work and was carried out within the time expected by the FIA. This is similar to the timeframes seen at other major sporting events.
The Office of Cost Cap Management manages and monitors compliance with financial regulations and investigates and investigates suspected violations through an audit process or by initiating a full investigation when it deems this warranted. Responsible for taking appropriate enforcement action with respect to violations.
The Cost Cap Administration has several options when dealing with allegations of financial regulatory violations. If deemed appropriate, procedural or minor overpayment violations will proceed to a settlement known as an Approved Breach Agreement (ABA) with the relevant competitor. If agreement cannot be reached, or if the Office of Cost Cap Administration determines that it is more appropriate, refer the case to the Cost Cap Adjudication Panel. If a material overspending violation is suspected, the Cost Cap Administration must refer the case to a Cost Cap Adjudication Panel.
The Cost Cap Adjudication Committee shall be composed of six (6) persons selected by the FIA General Assembly in accordance with FIA Regulations from among the candidates proposed by either the FIA Sport Member Associations with voting rights or by a group of five (5) or more Formula 1 Teams. It consists of a panel of 12 judges.
Procedural violations may lead to financial penalties and/or minor sporting penalties (in cases of exacerbating factors), as detailed in the Financial Regulations. Minor overspending violations (<5% cost cap) may result in financial penalties and/or minor sport penalties. Only material overspend violations (>5% cost cap), if confirmed prior to the Cost Cap Arbitration Panel, will result in a mandatory Constructors’ Championship point deduction and may result in additional financial and/or material sports penalties. have a nature.
