Red Bull Responds to ‘Minor’ Breach of F1 2021 Budget Cap

After paddock rumors of potential cost cap violations last season continued to brew in recent weeks, the FIA announced Red Bull is considered to have committed a “procedural breach” and a “minor overspend” in 2021. 

The FIA has not yet determined what the punishment will be for breaching last season’s cap. Red Bull released a statement in wake of the announcement, saying, “We note the findings by the FIA of ‘minor overspend breaches of the financial regulations’ with surprise and disappointment. Our 2021 submission was below the cost cap limit, so we need to carefully review the FIA’s findings as our core belief remains that the relevant costs are under the 2021 cost cap amount.

“Despite the conjecture and positioning of others, there is of course a process under the regulations with the FIA which we will respectfully follow while we consider all the options available to us.”

A “minor overspend” is considered to be any figure less than 5% of last year’s $145 million cap, which is roughly $7.25 million. Potential penalties can be wide ranging, including public reprimand, limitations in aerodynamic testing, deduction in drivers’ and/or constructors’ points or reduction of the cost cap.

Red Bull principal Christian Horner recently denied rumors that his team overspent and said he was confident it did not breach the cap. Rivals had made comments about the speculation during the weekend of the Singapore Grand Prix, and Horner wanted the statements retracted. 

“We were a little bit taken aback by comments that were coming from two of our rival teams yesterday. The submission between the team and the FIA is one that is confidential. I have no idea what the outcome of our rival submissions are, or their accounting treatment or so on,” Horner said Oct. 1. “So I would be intrigued to know where their source of information for these fictitious claims have come from. And I mean, they’re hugely defamatory, and we take umbrage to them.”

Ferrari team boss Mattia Binotto addressed the possibility of Red Bull’s breach on Sunday at the Japanese Grand Prix. 

Said Binotto, “$5 million is about half a second, even $1 or $2 million is about one- or two-tenths, which is about from being second on the grid to being on pole and maybe having the fastest car. Obviously it’s about 2021, and from 2021, it’s an advantage you gain over the following seasons.”

Red Bull’s Max Verstappen won his second consecutive world championship at Suzuka after a wet, chaotic and shortened race. 

Aston Martin also was found to have breached the cost cap in 2021, but it was a procedural breach, as opposed to an overspend. That penalty also has not been determined. Williams was found guilty of a “procedural breach” earlier this year and paid a fine. F1’s other seven teams were found in compliance.