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How Does the Multi-Million “Minor Breach” by Red Bull Actually Stack Up Against the Budget-Cap Abiding F1 Teams?

Published 10/10/2022, 1:20 PM EDT

The FIA’s ruling on Red Bull’s cost cap submissions are finally out. However, there still remains uncertainty and ambiguity as to the implications and consequences that Red Bull will have to incur in relation to this.

The FIA, the governing body of the sport, has found Red Bull to be guilty of a ‘minor overspend breach’. The in-depth details of where this excess amount was spent have not been released yet. However, contrasting reports have emerged with respect to this.

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According to a source, “Red Bull’s ‘minor overspend breach’ is about 1-2 million USD.” Both Ferrari and Mercedes have been vocal about wanting their rival penalized. This is because the rivals believe this breach is what led to their title victory in 2021 and has had a massive impact on their 2022 dominance. They feel, “$5m plus in development equals half a second, but even $1m can mean tenths.”.

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However, the 2022 F1 leaders are still adamant that they have not breached any regulations. Once the FIA’s ruling was out, the Milton Keynes outfit was quick to release a statement of its own. And if it’s anything to go by, this cost cap drama is far from over.

Red Bull claims to take the FIA’s cost cap ruling with “surprise and disappointment”

Red Bull has been found to be in breach of the FIA’s cost cap for Formula 1. At this point in time, though, the exact ramifications of such a breach are not known. However, the team has come out with a statement of its own questioning the FIA and its decision.

According to sources, the overspending “is not in terms of car development, but due to costs such as catering and absenteeism due to illness.”. Irrespective, Red Bull has breached the cost cap, at least in the eyes of the FIA.

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However, Red Bull has said, “We note the findings by the FIA of ‘minor overspend breaches of the Financial Regulations’ with surprise and disappointment.” They reiterated that their “2021 submission was below the cost cap limit.”

They concluded the statement released with this proclamation. “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.”.

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WATCH THIS STORY: Understanding the Drama Behind Ferrari & Mercedes’ Budget Cap Battle Against Red Bull

How should the FIA punish Red Bull for this breach of Financial Regulations?

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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.

How Does the Multi-Million “Minor Breach” by Red Bull Actually Stack Up Against the Budget-Cap Abiding F1 Teams?

Red Bull claims to take the FIA’s cost cap ruling with “surprise and disappointment”

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