Budget Cap Drama Intensifies as Red Bull & the FIA Rift Over Difference in Interpretations

Published 10/11/2022, 9:40 AM EDT

The Red Bull cost cap drama is far from over. After it was rumored that the Milton-Keynes outfit was being investigated for a possible cost cap breach, its rivals demanded strict action. The FIA yesterday released their ruling in which they found Red Bull guilty.

However, the team is still adamant that they have not breached the cost cap. According to them, the FIA has included articles and expenses that do not come within the scope of the cost cap restrictions. In all this confusion, here is some clarity.

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According to AMuS, “The World Champion team is said to have committed a Minor Overspend Breach. That would be a coating of up to five percent. The range goes from one dollar to 7.4 million dollars. The FIA does not provide any information on this.” (translated via Google Translate)

However, they have held their position. They believe “the documents submitted to the FIA would reveal that the budget had remained below the upper limit.”

Moreover, the Bulls might have tried to use a legal loophole to their advantage. However, the FIA is having none of that.

Red Bull used Adrian Newey and Helmut Marko as pawns in their cost-cap games

It would be fair to imagine that a team like Red Bull has top-notch legal advice at their disposal. However, it would seem that their attempt to possibly circumvent the cost cap has not gone down well with the FIA.

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Under the regulations, the top three earners of the team would be exempted from the cost cap. However, they would “employ” Adrian Newey “through a consultant contract, and thus not count. So Red Bull could put another top engineer under the exceptions and save money.”

The Milton-Keynes outfit has denied the rumors. “Newey is one of the three top earners – and is therefore exempt from the budget cap. It should be different with sports director Helmut Marko. The team is not supposed to involve him.”

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Watch This Story: Understanding the Drama Behind the Ferrari Mercedes Budget Cap Battle Against Red Bull

Do you think Red Bull have found a legitimate loophole in the regulations or have they operated in bad faith?

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Written by:

Anirban Aly Mandal is a Formula 1 Author at EssentiallySports. In his pursuit for a Bachelor's degree in Law from Symbiosis Law School, he has written multiple academic papers centered around the domain of motorsports. Not only that, but due to his love for F1, he aims to work as a legal advisor in the most prestigious racing series in the world some day.

Edited by:

Ranvijay Singh

Budget Cap Drama Intensifies as Red Bull & the FIA Rift Over Difference in Interpretations

Red Bull used Adrian Newey and Helmut Marko as pawns in their cost-cap games

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