RB enter agreement with FIA over breach of ’21 Regulations

Red Bull have entered an Accepted Breach Agreement (ABA) with the FIA following a breach of the 2021 Financial Regulations, F1’s governing body have said.

For the first time in Formula One history, all 10 teams were required to submit their accounts of their annual spending against the Cost Cap for 2021 by the following March. On Friday in Mexico, the FIA announced that Red Bull was found to be in breach.

The Cost Cap Administration recognised that Red Bull Racing has acted cooperatively throughout the review process and has sought to provide additional information and evidence when requested in a timely manner, that this is the first year of the full application of the Financial Regulations and that there is no accusation or evidence that RBR (Red Bull Racing) has sought at any time to act in bad faith, dishonestly or in fraudulent manner, nor has it wilfully concealed any information from the Cost Cap Administration. In these circumstances, the Cost Cap Administration offered to RBR an ABA to resolve this matter. That offer was accepted by RBR.

The FIA.

In the summary, it was revealed Red Bull exceeded the cost cap in 2021, of £118,036,00 by less than 5% by less than 5% ( £1,864.00 or 1.6%) which is a minor breach. The FIA said they acknowledge that had Red Bull applied “the correct treatment within its full year reporting documentation of their Notional Tax Credit within its 2021 submission of a value of £1,431,438” and therefore would have exceeded the cap by $432,652 or 0.37%.

Regarding sanctions for breaching the cost cap, Red Bull must pay $7 million to the FIA within 30 days of the date of execution of the ABA.

They also receive a minor sporting penalty in the form of 10% reduction in their allocated Restricted Wind Tunnel Testing and Restricted Computational Fluid Dynamics (CFD) limits. Based on Red Bull’s championship position, the coefficient used to calculate their allocation will drop from 70% to 63%.

Non-compliance by Red Bull with any terms of the ABA will result in further procedural breach and automatic referral to the Cost Cap Adjudication Panel.

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