Red Bull, Mercedes, And All F1 Teams Cleared Of 2022 Cost Cap Wrongdoing

Sep. 05, 2023 3:36 PM ET byGerhard Horn Formula One /5 Comments

All ten teams are in the clear.

It's time to come up with a new excuse, Red Bull Racing haters, because the Federation Internationale de l'Automobile (FIA) recently announced that all 10 Formula 1 teams operated under the cost cap in 2022. In accordance with the FIA regulations, each of the teams has been given a certificate of compliance.

Earlier this year, rumors started circulating that several teams were over the cost cap. This time, Mercedes was the biggest name mentioned, and fans also had concerns about Aston Martin's sudden improvement in performance. Naturally, given Red Bull's history of not complying, its name popped up as well.

"The review has been an intensive and thorough process, beginning with a detailed analysis of the documentation submitted by the competitors," said the FIA. "Additionally, there has been an extensive check of any non-F1 activities undertaken by the teams, which comprised multiple on-site visits to team facilities and careful auditing procedures to assess compliance with the Financial Regulations."

Last year, three teams were in breach of the cost cap regulations, with Williams and Aston Martin receiving minor penalties. The Red Bull situation was more complex but not as bad as originally thought. There were loads of jokes about Red Bull'scatering spend, as the overspend was for daily free lunches for RBR's 1000 + staff members and for paying people when they're on sick leave.

When thefindings were made public, the FIA announced that Red Bull overspent by roughly $2 million. What made the matter even worse for Red Bull is that it failed to file a tax deduction document, which would have reduced its overspending by $1.4 million. Still, Red Bull owned up to its mistake and agreed to pay a $7 million fine, and it lost 10% of its aerodynamic development time.

"The FIA also notes that the Financial Regulations are essential to the long-term financial stability of the sport and that they will continue to be developed and refined based on the findings of each review process both in terms of the regulations themselves, which are written and approved under the FIA Formula 1 governance process, and the way in which they are enforced and policed," the FIA said in a press release.

The current budget cap is set at $142.2 million, and teams are allowed to exclude the three highest-paid members of the team. That's how Red Bull can afford to pay Max Verstappen $55 million per year, making him thehighest-earning driver on the grid.

Now that the matter has been settled, Red Bull can finally buy their drivers the all-newHonda Civic Type R. It has been sad seeing the guys roll up in the previous-generation model while every other driver arrives in the latest supercar.