FIA ‘no budget cap penalties’ to be imposed this week

Probably the biggest row of the Formula 1 season erupted over the Singapore GP weekend. Mercedes boss Toto Wolff has accused Red Bull Racing of spending “massively” and in effect buying the 2021 and 2022 championships. Christian Horner has defended Red Bull Racing’s submission to the FIA, but Wolff has increased the anti in response to Horner’s precise words.

Christian Horner was specific when he said, “It went through a process. It came in March, in terms of [being] fully signed by our auditors who are obviously one of the big three. And we believe that we are comfortably within the ceiling.

“So the FIA ​​is following its process. We are hoping, and potentially this week, to hear from not just us, but all the teams, the outcome of that process.

F1 teams use international auditors

The ‘big three’ are international adult and accounting firms who presumably wouldn’t want their reputations tarnished by Red Bull cheating on the numbers with them subsequently signing them off.

Honer then clarified that the only contact they had had with the FIA ​​in recent weeks was to clarify 6 points.

Wolff responded to this claim, “It’s funny that Christian says that, because they’ve been under investigation for weeks and months,” he said. “Maybe he’s not talking to his CFO.”

The FIA ​​has been reviewing all team submissions for over six months given that the deadline for Formula 1’s governing body to receive team numbers for 2021 was in March this year.

Red Bull clarifications will further reduce spending

When Christian Horner was asked if the 6 clarifications would affect his submission, the Red Bull boss replied.

“It is clearly below. With the details, we should be even more below….

The Red Bull Racing consultant told ORF he believed that whenever the FIA ​​had been to Milton Keynes, “they were on their way from Brackley”, which is the base of the Mercedes team.

This week, the FIA ​​is set to issue budget cap compliance certificates to teams on Wednesday and there has been a lot of media coverage of what the penalties would be if Red Bull or any other team breached the $145m spending limit. .

FIA budget cap process

The FIA ​​has a panel called the Cost Cap Administration (CCA).

If the CCA finds a team in violation, the matter will be forwarded to the Cost Cap Arbitration Committee, which is a panel of judges that makes a decision on the nature of the violation and the penalties to be awarded.

The nature of the shortcomings is as follows according to the FIA

Nature of breaches

procedural. Williams failed to make his submission in time and received a Faine in March of that season.

Minor overruns

An F1 team making a return to the season that is 5% or less over the budget cap will be deemed to have committed a ‘minor over budget offence’.

A minor overrun violation, once determined by the CCSI, allows the panel to assess a financial penalty or a minor athletic penalty against the offending team.

Significant expenditure overruns

An F1 team making a season return that shows a budget cap overrun of 5% or more will be deemed to have committed an “over budget offence”.

A Material Expenditure Violation, once determined by the CCSI, allows the panel to impose a deduction of Manufacturers’ Championship Points, and may also impose a Financial Penalty as well as a Material Sporting Penalty.

The penalties for these offenses are broadly listed by the FIA ​​as follows.

Budget cap penalties

Penalties for minor overrun

the CCA may impose one or more of the following minor sporting sanctions:

Public reprimand

Deduction of Manufacturers’ Championship points awarded for the championship that occurred during the reporting period of the infringement

Deduction of drivers’ championship points awarded for the championship that occurred during the reporting period of the infraction

Suspension of one or more stages of a Competition or Competitions, excluding, for the avoidance of doubt, the race itself

Limitations on the ability to perform aerodynamic or other tests; and/or reduction of the Cost Ceiling provided that the specified reduction is only applied for the year following the application of the sanction.

Penalties for exceeding material

Deduction of Manufacturers’ Championship points awarded for the championship that occurred during the reporting period of the infringement

Deduction of drivers’ championship points awarded for the championship that occurred during the reporting period of the infraction

Suspension of one or more stages of a Competition or Competitions, excluding, for the avoidance of doubt, the race itself

Limitations on ability to perform aerodynamic or other tests

Suspension of a Competition or entire Competitions, including for the avoidance of doubt the race itself

Exclusion from the championship

Reduction of the cost cap provided that the specified reduction only applies to the year following the sanction imposed

The PICC also has the power to order heightened surveillance of an F1 team once found guilty of an offence.

Decisions taken by the CCAP may be appealed to the FIA ​​International Court of Appeal (ICA).

This is a panel of judges, elected by the FIA ​​General Assembly, who will hold a hearing with the offending team, as well as any relevant witnesses and/or officials, and may impose penalties and costs. to the offending team.

No FIA decision on penalties this week

The first step in the process is to define the nature of the breach discovered during the audit process. This week only teams identified as having committed no offense will be issued with certificates of compliance.

Any team deemed by the CCA to have committed an offense will then enter further proceedings which could end in months before the International Court of Appeal.

So we won’t know until this week who violated the budget cap in the CCA’s opinion. We will not be informed whether the breach is minor or substantial as CCAP will decide that in due course

But “no budget cap penalty” will be imposed this week.

Unless all teams receive budget cap compliance certificates, this row is set to run and run.

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