Revealed: Four reasons for Red Bull’s cost cap overspend

The FIA found them guilty of a “minor” overspend of the $145m budget (therefore a maximum of $7.25m) and have opened talks with Red Bull over their punishment.

Red Bull were initially $4m inside the $145m F1 budget, according to RacingNews365, before four issues cost them a combined $5.8m, pushing them $1.8m above the cap.

The four reasons Red Bull reportedly broke the F1 cost cap

• Staff gardening leave and sick pay

• Catering costs

• Spare parts

• Tax

The report says that Red Bull’s staff gardening leave costs refer to Dan Fallows, their former head of aerodynamics who left in mid-2021 to join Aston Martin.

A cost of $800k regarding Fallows was not factored into Red Bull’s costs but has been included in the FIA’s investigations, it is reported.

Adrian Newey’s salary is not an issue, despite previous unrelated reports. He is exempt from the cost cap because he is among the three highest-earners at Red Bull.

A further $1.2m was spent on catering.

A June 2022 rule change regarding how to carry over the cost of spare parts from the 2021 season is another part of Red Bull’s overspend, it is reported.

A tax issue is the final reason for the overspend - but RacingNews365 reports that if Red Bull are able to prove that they expect a rebate from HMRC, the FIA will be “lenient”.

Max Verstappen won his maiden title at the 2021 Abu Dhabi Grand Prix, controversially edging Lewis Hamilton who has since demanded fairness amid the cost cap row.

Hamilton enters the F1 United States Grand Prix in sixth in the F1 standings after Verstappen sealed a second championship.