BREAKING: Red Bull punishment revealed for budget cap breach

Red Bull has been fined $7million and faces a limitation of its aerodynamic testing after being adjudged by the FIA to have spent beyond the $145million [£118,036,000] budget cap in 2021.

Red Bull was found guilty of a minor breach of the regulations, up to a limit of five per cent of the cap, with the figure now revealed to be £1.864m or 1.6 per cent, as well as a procedural breach.

The team has agreed to an Accepted Breach Agreement with the FIA, in essence, an admission of guilt and waiving its right to appeal the decision.

The FIA's Cost Cap Administration offered the terms of the ABA at the United States Grand Prix, although talks were put on hold following the death of Red Bull owner and co-founder Dietrich Mateschitz ahead of qualifying.

The FIA has revealed Red Bull submitted relevant costs for 2021 of £114,293,000, only for motorsport's governing body to discover its documentation inaccurately excluded and/or adjusted costs amounting to a total of £5,607,000.

In its statement, the FIA acknowledges that had Red Bull correctly followed the rules with regard to its documentation it would have still breached the cap but only by £432,652 or 0.37%.

In relation to the penalty, the Cost Cap Administration recognised Red Bull had acted co-operatively throughout the review process and had sought to provide additional information and evidence when requested in a timely manner.

It also highlighted the fact this is the first year of the full application of the Financial Regulations, "which are a very complex set of rules that competitors were required to adapt to and that there is no accusation or evidence that RBR has sought at any time to act in bad faith, dishonestly or in a fraudulent manner, nor has it wilfully concealed any information from the Cost Cap Administration".

It further cites the fact the breach is at the lower end of the minor overspend range, and that Red Bull was willing to accept its failings whilst also co-operating with the Cost Cap Administration.

In addition to the $7m fine, Red Bull faces a seven per cent reduction - from 70 to 63 per cent - in its restricted wind tunnel testing and restricted computational fluid dynamics limits.

It also bears the costs incurred by the Cost Cap Administration in connection with the preparation of the ABA.

Red Bull summary of inaccurately filed documentation

1. Overstated excluded costs concerning catering services

2. Costs pursuant to article 3.1w of the financial regulations concerning consideration and associated employer’s social security contributions

3. Costs in respect of non-F1 activities, as those costs had already been offset within total costs of the reporting group;

4. Costs in pursuant to article 3.1k of the financial regulations in respect of bonus and associated employer’s social security contributions

5. Understatement of relevant costs in respect of a gain on disposal of fixed assets by failing to make the necessary upwards adjustment

6. Costs concerning apprenticeship levies

7. Costs pursuant to article 3.1(h)(ii)(i) of the financial regulations concerning consideration and associated employer’s social security contributions

8. Understatement of relevant costs concerning the cost of use of power units

9. Costs pursuant to article 3.1(h) (i) concerning consideration and associated employer’s social security contributions

10. Understatement of relevant costs concerning use of inventories

11. Clerical error in respect of Red Bull's calculation of certain costs re-charged to it by Red Bull Power Trains Limited

12. Certain travel costs pursuant to article 3.1(r) of the financial regulations

13. Costs of maintenance pursuant to article 3.1(i) of the financial regulations.