Red Bull’s punishment for breaking F1 cost cap revealed

The FIA announced the long-awaited outcome ahead of the Mexico City Grand Prix after concluding terms of an ‘Accepted Breach Agreement’ with Red Bull. 

Red Bull’s breach was $2.2m (£1.86m) or 1.6 percent, but the FIA acknowledged if a tax credit had been correctly applied it would have been $0.5m (£432,653). 

The FIA said the team had "inaccurately excluded and/or adjusted costs amounting to a total of £5,607,000" in 2021.

13 areas that were incorrectly interpreted by Red Bull include catering, unused parts, power units, social security, apprenticeships and non-F1 activities. 

“Red Bull Racing was found to be in breach, however, 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 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,” read an FIA statement. 

An ABA essentially confirms Red Bull acknowledges their wrongdoing and accepts the imposed sanctions. 

Red Bull are set to address the matter during a news conference later on Friday morning. 

Red Bull’s ‘minor’ breach of the $145m cost cap for 2021 - the year Max Verstappen narrowly beat Lewis Hamilton to win his first world title - was announced by the FIA on 10 October, one day after Verstappen sealed his second championship in Japan. 

The FIA had proposed the ABA ahead of the United States Grand Prix but discussions between Red Bull boss Christian Horner and FIA president Mohammed Ben Sulayem in Austin were put on hold following the death of Red Bull co-founder Dietrich Mateschitz. 

Aston Martin, who stayed within the spending limits, are also expected to recieve a fine for committing a less serious procedural breach.

How will the penalty impact Red Bull?

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Due to winning the 2022 constructors’ world championship, Red Bull were already set to have less wind tunnel time (70 percent) and CFD usage than any of their rivals under F1’s sliding scale aero testing restriction regulations. 

With a further reduction of 10 percent set to be applied, Red Bull will now have even less time to work on developments and crucial performance gains for their 2023 car.

In total, Red Bull will get 60 percent of permitted car development time during F1 2023. 

Red Bull have 30 days to pay the $7m fine, which will not come out of the team's $135m budget for next year.