
The hard numbers behind Red Bull's cost cap penalty
Formula 1’s rules aim to peg back the most successful teams by reducing their aero research resources. Red Bull’s have been cut even more as a penalty for breaking the budget cap. But, as ALEX KALINAUCKAS explains, there is much disagreement over what impact the punishment will have
Christian Horner, naturally, wasn’t happy with the extent to which his Red Bull squad was punished late last year for breaching the 2021 cost cap – the first year of Formula 1’s precious new financial restrictions put to the test immediately. Red Bull’s rivals, equally naturally, weren’t happy either, feeling the punishment hadn’t gone far enough. The FIA, having handed out the penalty once Red Bull had entered into an Accepted Breach Agreement (ABA) for what constituted a ‘minor’ overspend breach, acknowledged the contrasting positions.
In these circumstances a good compromise means all parties end up equally unhappy, which is what the FIA achieved. But the situation is more complicated, chiefly because F1’s nature means any advantage Red Bull gained by going £1.8m over the 2021 cost cap limit of $145m could very well still be felt in the coming campaign – and even seasons to come. Alternatively, the penalty it’s now serving could actually harm Red Bull over an even longer period.
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