Financial fair play: Red Bull hits the wrong ceiling

After having postponed for the first time the delivery of certificates of conformity to the 2021 capped budget, the FIA ​​communicated this Monday, October 10 following the in-depth examination of the financial documents provided by all competitors at the end of 2021.

Introduced last year in order to level performance and attract new manufacturers, the budget ceiling was limited to 145 million dollars annually, a figure which was reduced by 5 million for the 2022 season. Concretely, what do we add? of FIA communication? First, that nine of the ten teams respected the cap in 2021, which is already a hell of a victory.

Then, that the stable Aston Martin was guilty of a procedural violation, and above all that Red Bull Racing, crowned champion of the Drivers classification with Max Verstappen, was singled out not only for procedural shortcomings but also and above all for having exceeded the budgetary limit.

The FIA, however, clarified that this was only an excess of less than 5%, an offense which falls into the “minor violation” category of financial regulations. As required by the legislation, “breaches of procedure may result in financial penalties and/or minor sporting penalties (in the event of aggravating circumstances)”.

However, the legislator has not yet announced a precise sanction. “The FIA ​​Cost Cap Administration is currently determining the appropriate course of action to be taken under the Financial Regulations in relation to Aston Martin and Red Bull and further information will be communicated at a later date.”

How Ferrari et Mercedes will they react when they learn that Red Bull has not respected the budget ceiling? / © DPPI

Minor infraction, major consequences?

While the range of sanctions goes from a simple financial fine to disqualification from the championship, Red Bull should not lose its 2021 title. In the event of exceeding the ceiling by less than 5%, the laws matter in fact provide for minor financial and/or sporting penalties. The infraction can therefore result in a withdrawal of points in the Manufacturers' standings as well as the Drivers' standings. Remember that Verstappen won the 2021 title 8 lengths ahead of Lewis Hamilton only... Automatic point withdrawals in the manufacturers' classification and major sporting penalties are, for their part, reserved for infractions greater than 5%.

By not yet revealing the sanctions given, the FIA ​​is undoubtedly giving itself time to assess the return of the different teams before taking a position. Mattia Binotto and Toto wolff have in fact already been particularly vocal on the subject in recent weeks.

The bosses of Ferrari and Mercedes consider that 7 million euros, the equivalent of the 5% exceeded, represents several tenths of performance on the track, and above all a significant advantage over the competition until 2023. For the boss of Maranello (Italy), the FIA's five-day delay in issuing certificates of conformity shows “ that there are discussions and points that are not clear. On one side the FIA ​​contests, and on the other the team defends! I'm a bit pessimistic, but clarity and transparency will be important. »

The moment is crucial, and sanctions will play a key role in the future of the very principle of budget cap. If the sanctions are not commensurate with the advantage gained from overtaking, the entire pyramid would threaten to collapse.