FIA completes review under 2021 FIA Formula 1 Financial Regulations

• Nine teams confirmed under 2021 cost cap level

• Aston Martin in procedural breach

• Red Bull Racing on minor procedural and overspending violations

The FIA ​​confirms that its Cost Cap Administration has now completed review of the Reporting Documentation submitted by each Competitor who entered the 2021 FIA Formula One World Championship in respect of the 2021 Reporting Period ending 31 December 2021.

The FIA ​​Cost Limit Administration has issued certificates of compliance to seven of the ten Competitors:

  • Aston Martin Aramco Cognizant Formula One Team is deemed to be in a procedural breach of the Financial Regulations;
  • Oracle Red Bull Racing is deemed to be in Procedural Violation and Minor Overspending of the Financial Regulations; Y
  • Williams Racing has complied with the Financial Regulations with respect to the 2021 Reporting Period, with the exception of a prior Procedural Non-Compliance in respect of which the Cost Cap Administration entered into an ABA with Williams in May 2022. This Procedural Non-Compliance it was then remedied by Williams in a timely, cooperative and transparent manner.

The review of the submitted Reporting Documentation has been an intensive and thorough process, and all Competitors gave their full support in providing the information required to assess their financial situation during this first year of the Financial Regulations. The FIA ​​cost cap administration notes that all competitors acted at all times in a spirit of good faith and cooperation throughout the process.

The FIA ​​also wishes to point out that, with regard to this first year of application of the Financial Regulations, the intervention of the FIA ​​Cost Cap Administration has been limited to reviewing the submissions made by the Competitors and that no formal investigations have been initiated. complete.

The FIA ​​Cost Cap Administration is currently determining the appropriate course of action to be taken under the Financial Regulations in respect of Aston Martin and Red Bull and further information will be communicated in accordance with the Regulations.

Note to editors

The Financial Regulations were introduced to the FIA ​​Formula One World Championship from the 2021 season following unanimous approval from the Competitors. The intention of the Financial Regulations is to limit spending on the Championship to ensure the long-term viability of the Championship and to encourage convergence in performance between Competitors, thus creating more exciting racing.

The regulations are very complex and reflect the complexity of the sport as a whole. The process by which Competitor submissions are then audited by the FIA ​​Cost Cap Administration required a significant amount of work, which was carried out in the time provided by the FIA. This is analogous to the time frame seen in other major sporting competitions.

The Cost Limit Administration is responsible for administering, monitoring compliance with the Financial Regulations, investigating instances of suspected non-compliance through the audit process or initiating full investigations if deemed warranted, and taking appropriate enforcement action with respect to any alleged breach.

The Cost Cap Administration has several options when it comes to an alleged breach of the Financial Regulations. You may reach, where you deem appropriate, an agreement called an Accepted Default Agreement (ABA) with the Competitor concerned in the event of a Procedural Failure or Minor Overspending Failure, or, if no agreement can be reached or the Administration The Cost Limit Adjudication Panel deems it more appropriate, it may refer the case to the Cost Limit Adjudication Panel. In the event of an alleged Major Overspending Noncompliance, the Cost Cap Administration must refer the case to the Cost Cap Adjudication Panel.

The Cost Limit Award Panel comprises a panel of between six and twelve judges elected by the FIA ​​General Assembly in accordance with the FIA ​​Statutes from candidates proposed by the FIA ​​Sporting Member Associations entitled to vote or a group of no less than five F1 teams

Procedural Violations may result in Financial Sanctions and/or Minor Sporting Sanctions (in case of aggravating factors) as detailed in the Financial Regulations. Non-compliance with minor overspending (<5 % del límite de costos) puede dar lugar a sanciones financieras y/o sanciones deportivas menores. Solo una infracción de gastos excesivos sustanciales (> 5% of the cost cap) if confirmed before the cost cap adjudication panel will result in a mandatory constructors championship point deduction and may result in additional financial penalties and/or major sporting penalties.

Click here to read the Financial Regulations in full.

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