In 2021, FIA decided to impose a budget cap to keep a check on the spending of the F1 teams. The initial figure was expected to be $175 million. However, after the COVID-19 disaster, the cost was cut down to $145 million. In 2022, this amount was brought down by another $5 million to $140 million, with an extra $1.2 million cost cap bonus.

But, with the increase in inflation and freight costs, FIA agreed to increase the budget cap by 3.1% during the Austrian GP weekend. All of this was done to encourage a more level playing field among the teams.

What happens if a team breaches the budget cap?

The line is pretty clear when it comes to budget cap infringement. If a team goes over the cost cap by 5%, it is considered material overspending. Anything below that figure, you fall in the ‘minor overspend’ category. The possible penalties in both situations can include– points deduction from the last season, exclusion from races, fines, and wind tunnel testing limitations.

Red Bull and Aston Martin are the two teams to have breached the cost cap this year around. While Aston Martin have been found to have a procedural breach, Red Bull fall in the minor overspend category.

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Talking about Red Bull’s breach, Former F1 driver and commentator, Martin Brundle, said, “What seems absolutely crazy to me is that a minor breach can be up to five per cent overspend on the cost cap. That is $7m and we know that is a massive upgrade on a car, maybe even a B-spec for some teams.”

“So, that needs tightening up for starters, because what is the point in having $145m and then having this five per cent variant?” Brundle added.

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

With rivals urging FIA to take stern action, Red Bull have come out to defend its position.

Red Bull respond after being found guilty of breaching the cost cap

Christian Horner has looked like an assured figure throughout this controversy. Despite being found guilty, the team from Milton Keynes continues to insist that they have followed the rules and the problem lies in the difference in interpretations.

Red Bull, in their official response, stated, “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 belief remains that the relevant costs are under the 2021 cost cap amount.”

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

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