The budget cap is experiencing its first shocks, a big danger for F1?

The first possibility of title Max Verstappen this season is being completely overshadowed by the growing rumor that two teams have exceeded the 2021 budget cap, then set at 145 million dollars (compared to 140 for the 2022 financial year. Editor's note). The noise was so great in the Singapore paddock that the FIA ​​even felt obliged to communicate to affirm that it was currently in the process of “finalize the collection of 2021 financial accounts submitted by all teams of F1 and that alleged breaches of the Financial Regulations, if any, will be dealt with in accordance with the formal procedure provided for in the Regulations. » This is the whole problem, moreover, since the punishments range from a simple reprimand to disqualification from the championship, without us really knowing precisely what could lead to one or the other sanction.

At a press conference in Singapore, six team bosses discussed the first shock linked to the establishment of this budget cap. By taking all necessary precautions knowing the still unofficial nature of possible violations, and without ever naming Red Bull (of which Christian Horner expressed his confidence that the Austrian team will be within the limits of the regulations) nor Aston Martin who could be the two teams concerned, they all expressed their concerns and called for transparency. “We don’t want the rules to change during the season with a compromise, warned the sports director of the Team Ferrari Laurent Mekies. It doesn't matter whether it's an overrun of 5, 7 or 10 million. You know, 7 million is 70 engineers who would give several tenths to the car. We must not forget that financial regulations have become almost even more crucial than sporting and technical regulations. »

Laurent Mekies discussed the budget cap in Singapore. © DPPI

In essence, everyone considers that a violation of the regulations which is not punished harshly would lead the model to its downfall. “For our part, we consider that the establishment of the cap budget and financial regulations was the best decision taken in F1 for more than twenty years, recognized Fred Vasseur, the boss of the stable Alfa Romeo. This must not be compromised by a lack of decision or possible severity. If it's the end of the cost cap, it's not the end of F1... but almost. »

As a reminder, the cap budget was introduced in order to level performances between the teams, and above all to allow manufacturers and teams to join the grid while ensuring they can be competitive without it becoming an arms race by through monumental spending. “We voted for it, but we knew it would be difficult to implement and police for the FIA ​​of course, continues Vasseur. Now it's done, we must move forward. It’s obviously difficult for big teams. The amount of effort and work the FIA ​​puts into inspecting teams should not be minimized. With us alone, the work is immense. When we have new technical regulations, it is also difficult to respect them, but fortunately, we do not stop at the first constraint..."

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The FIA ​​has in fact planned to communicate next week regarding all these files. What is happening is very important for the future of F1, and the severity of the FIA's response will likely determine the future of this budget cap. If Red Bull is 5% or less over the cap, should the 2021 title be taken away from them? At what excess amount should this be done? And above all, in terms of image, at a time when F1 is breaking all records, could the legislator really afford it? Conversely, wouldn't being satisfied with a simple financial fine be a godsend for all the rich teams, who could then in some way buy additional lap time by no longer aiming for the 140 million ceiling, but 105% tolerance? Wouldn't this then be the beginning of the end of a system that everyone agrees is well-founded?

Would Red Bull have exceeded the cap in 2021? © Antonin Vincent / DPPI

“What is certain is that it is a vital test for the budgetary cap, said Mekies, putting on the pressure. If we don't pass this test, then it will surely be game over. Should we talk about penalties now? Surely not. This is probably what people want, but we are much earlier in the process, we are in a more fundamental aspect. Already, has there been a violation? Do we agree on the identity of the violation? That's what we're talking about right away. Any penalties will come later. »

The possible sanctions, in fact, will raise another question. When should we punish? Jost Capito was firmly against punishing in 2021, when the championship is decided, PR is done etc. “All of this still raises the question of the advantage that could be gained from a violation of the regulations over the following year, asks Mekies. If you violate the regulations in 2021, what benefit will you get for 2022 and even 2023? We will have to answer that and then discuss the timing of the penalty. » Basically, a team should not be able to play with the cap, betting on being a winner despite penalties. This is the first time that the budget cap has been challenged to this extent. If it does not want to put the credibility of F1 in danger, the FIA ​​has no other choice but to be severe. Otherwise the entire house of cards could collapse.

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