Red Bull Racing believes it is negotiating a settlement with the FIA (Fédération Internationale de l’Automobile) under the ABA (Accepted Breach Agreement) over allegations of violations of the 2021 F1 qualifying limit. It is
Effectively, the ABA would mean that Red Bull F1 had committed a breach and agreed to the penalties and conditions attached to it, but the benefits of agreeing would be expeditiously dealt with under any scenario involving a breach, Other teams cannot appeal.
The sanctions will be monetary penalties or some of the ‘minor sporting penalties’ defined by the financial rules.
“Minor sporting penalties” are reprimands, suspension from one or more stages of a competition (event) (except racing), restrictions on aerodynamics and other forms of testing.
Importantly, it does not include points deductions (drivers/constructors) or future cost cap reductions for teams. This is because they are exempt from all financial penalties for violating financial regulations. Deductions in points or future cost cap reductions are penalties that apply if a team is found guilty of a minor offense and the ABA disagrees.
If Red Bull F1 agrees to the ABA, the FIA will be obligated to detail violations, sanctions and enhanced monitoring procedures, but can omit “confidential information”. If the ABA is not agreed, the case proceeds to the next stage, where it is evaluated by the Cost Cap Adjudication Panel and any kind of penalty is considered.
Red Bull F1 team principal Christian Horner is understood to likely explain the team’s position on the cost cap violation at a press conference in Austin on Friday, but that has yet to be confirmed.
However, given the timing, it is unlikely that an agreement will be reached before Christian Horner speaks at a press conference.
Since rumors of a cost cap violation by Red Bull Racing first surfaced over the weekend of the Formula 1 Singapore Grand Prix, Horner has insisted he has full faith in the figures the team submitted to the FIA in March.
The day after the F1 Japanese Grand Prix, the FIA formally confirmed that Red Bull Racing was guilty of “procedural and minor overspending violations” after reviewing documents submitted by all F1 teams.
While nothing has been officially confirmed by the FIA or F1 teams, details of Red Bull Racing’s alleged overspending are beginning to emerge.
The overall amount involved is believed to be approximately $1.8 million, which is within the 5% cap or $7 million “minor violation” limit.
Red Bull appear to be violating several areas of the FIA’s financial rules. The FIA’s financial regulations are regularly updated with amendments published on the website or unpublished.
One is the allocation of catering costs between the factory and the circuit. In addition, there are believed to be dismissal and sick pay issues related to key employees.
An issue directly related to the operating costs of F1 cars is the apportionment of the value of unused spare parts. They were handed over to the Heritage department at the end of the season and are being used in show cars and testing of the 2021 model year in 2022, which falls outside the budget cap.
It is understood that the FIA clarified how such parts should be considered by teams in June this year, three months after F1 teams submitted their paperwork.
There are also UK-specific tax issues, which are believed to be similar to breaches of procedure involving Aston Martin.
If Christian Horner speaks out on Friday, he is expected to provide further details on the team’s position in all areas.
