FLOYD ON F1: 2021 remembered for all the wrong reasons

For several weeks the media has bombarded the F1 world with rumours of massive overspends by certain teams, during the 2021 season, the introductory year of a $145 million budget cap restriction.

For F1 – it was a year to remember, for all the wrong reasons. The fight for the championship was intense both on and off circuit, and included some interesting decisions made by FIA officials, from race director to stewards.

The impact is still being felt by many as the latest “leaked” financial reports of certain teams has proven. Accusations and threatened legal actions depended on the all important FIA Cost Cap Administration’s review of the Reporting Documentation submitted by each team.

Due last Wednesday, it was delayed finally appearing on Monday.

F1 cost cap breaches

The FIA statement read as follows: “The FIA Cost Cap Administration has issued certificates of compliance to seven of the ten competitors.

“Aston Martin Aramco Cognizant Formula One Team is considered to be in Procedural Breach of the Financial Regulations; Oracle Red Bull Racing is considered to be in Procedural and Minor Overspend Breaches of the Financial Regulations; and Williams Racing has complied with the Financial Regulations in respect of the 2021 Reporting Period with the exception of a previous Procedural Breach in regard to which the Cost Cap Administration entered into an ABA with Williams in May 2022. This Procedural Breach was then remediated by Williams in a timely, cooperative and transparent manner.

”The review of the reporting documentation submitted has been an intensive and thorough process and all competitors gave their full support in providing the required information 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.

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“The FIA would also note that with respect to this first year of the 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 full formal investigations were launched.

“The FIA Cost Cap Administration is currently determining the appropriate course of action to be taken under the financial regulations with respect to Aston Martin and Red Bull and further information will be communicated in compliance with the regulations.”

‘Minor’ breach

The report has shown Red Bull exceeded the mandatory cost cap. However, no details of the amount was provided in the statement but the governing body referred to it as a “minor” breach, indicating it was less than 5%.

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Oracle Red Bull Racing responded in a statement saying:

“We note the findings by the FIA of ‘minor overspend breaches of the financial regulations’ with surprise and disappointment.

“Our 2021 submission was below the cost cap limit, so we need to carefully review the FIA’s findings as our belief remains that the relevant costs are under the 2021 cost cap amount.

“Despite the conjecture and positioning of others, there is of course a process under the regulations with the FIA which we will respectfully follow while we consider all the options available to us.”

Sanctions to be decided

The FIA has yet to announce what action will be taken. It does appear that claims by Mercedes and Ferrari’s of an extremely high overspend were somewhat exaggerated.

Who knows, perhaps some creative accounting will yet save the day.

The next F1 race is the United States Grand Prix in Austin on 23 October.