F1 – ‘Budget cap gate’ / Emptying companies and gray areas: F1 must stand up for its credibility

    F1 - 'Budget cap gate' / Emptying companies and gray areas: F1 must stand up for its credibility

    It thundered so much that it rained. And the rumors spread late yesterday afternoon (Italian night, nd) in the ring from Singapore On the occasion of the F1 GP, this was confirmed by the statements of various experts on the sidelines of the first two free practice sessions. on September 30 FIA Must have reported resultAudit Based on the reports prepared by the teams about the expenses incurred during the 2021 season.

    Analysis of the documents he has done board subordinate Maximum cost management It would have brought out the spending cap ($145 million), nd) by two teams: Aston Martin And the Red Bull. Canadian investor team Lawrence’s outing Will be “A simple breach of overspending”that is, use an additional budget within 5%.

    Team Report Red Bull It appears to show an expense clearly above 5% of the allowable budget, assuming the so-called violation characteristics “material overspending breach”. The Formula 1 governing body has telegraphed that the result of the financial assessment has been postponed: “The FIA ​​is finalizing the evaluation of the 2021 financial statements submitted by all Formula 1 teams. Alleged violations of the Financial Regulations, if any, will be dealt with in accordance with the official procedures established by the Regulations.”

    Costs included and excluded in team reports

    F1. The extra time given to Red Bull to formulate its counter-arguments

    Extent of the violation highlighted in the team report Milton Keynes powered byextra time Awarded by FIA To the men led by Christian Horner to formulate their counterarguments. The specter is that, like technical regulation, financial regulation can also give way to skilful interpretations that would in effect nullify the FIA’s efforts to balance the balance of power between teams..

    In financial terms, 2021 was the first season to be governed by the new regulatory framework. However, some procedural errors or minimal budget overruns were to be expected Looks like Red Bull’s situation is very critical.

    F1. Red Bull: a complex corporate organization

    Red Bull is the most complex Formula 1 team to organize. Suffice it to say that drives RB18, Despite being an obvious paternity HondaIt is officially produced by the newly formed R departmentand Bull Powertrains. In a surprising statement issued on the microphones of Sky Sport Deutschland, the historic advisor to the “Drink Team” team Helmut Marko It may have provided a key to understanding the Anglo-Austrian team’s defensive line:

    We are in the process of including our accountants and accountants from the FIA. We must not forget that we have three facts which are Red Bull Advanced Technologies, Red Bull Technology and Red Bull Powertrains, three facts that must be clearly separated.” Why emphasize the companies that make up the Red Bull World? In the UK business registry, the topics mentioned by the Austrian Volcanic director correspond to several companies:

    • RED BULL TECHNOLOGY LTD Company No.: 05202976
    • RED BULL POWERTRAINS LTD Company No.: 13204421
    Red Bull Racing Group Corporation

    Red Bull Advanced Technologies (RBAT) is a company created to take the engineering and technology skills of its “sister” Red Bull Racing into a very diverse range of sectors: hypercars, hydrogen race cars, hot air balloons and sailboats. Real-world activities that are not related to Formula 1 and are therefore theoretically included in Financial Regulation ‘exceptions’. Why mention this company too?

    Because RBAT is distinguished in the following sectors:

    • aerodynamics
    • Mechanical, composite and electrical design
    • structural analysis
    • simulation and modeling
    • Control systems and software development
    • Produce

    Guess everything you need to design and build an F1 car. Could the dependence between Red Bull’s owning companies lead to the explanations Christian Horner also referred to? The Milton Keynes team manager has clearly tried to explain that the potential violations in the report submitted to the FIA ​​may be the result of different interpretations in setting some of the expense items. An experienced manager like Horner knows that any doubts can be resolved through collaboration between the Anglo-Austrian team’s accountants and FIA colleagues in progress rather than the final balance.

    F1. Red Bull Report: Serious Mistakes or Conscious Strategy?

    If the order of magnitude of the additional budget used by Red Bull during the 2021 season is above 5%, it is difficult to assume that this is a mistake in the allocation of economic resources. As Haas Team Leader Gunter Steiner stated, financial regulation is clear enough not to cause this skew.

    But if non-compliance with spending limits is voluntary, how can he escape the controls of cost cap management? Win the hard challenge with mercedes Was this reason enough for not paying attention to the regulatory framework and its consequences?

    The steering wheel between Max Verstappen (Red Bull Racing) and Lewis Hamilton (Mercedes F1 Team) during the final round of the Abu Dhabi Grand Prix 2021

    It should be noted that if the extent of the breach indicated in Red Bull is confirmed, no penalties will be retroactive. Therefore, we are unlikely to assume a posthumous reversal of the already hot 2021 season. Perhaps people trust and still trust the interpretation of financial regulations, a scenario that the legislature hardly takes into account.

    F1. AdvantagesOverspending Red Bull may not be limited to the 2021 season

    If Red Bull Racing’s chief financial officer applies the same rationales and assumptions to the 2021 season, the allocation of economic resources for the 2022 season will also exceed the current season’s most restrictive spending limit ($140 million, nd). TheOverspending It could set a competitive advantage with a definite impact on next season as well.

    In this sense, the postponement related to the introduction of the light structure, tentatively scheduled for the weekend in Singapore, could be indicative of warning The FIA ​​sent him to the Milton Keynes team. In hindsight, one reads in a different light that the massive development plan has turned the clumsy RB18 The start of the season in a graceful gazelle is out of competition, especially after a long summer vacation.

    Max Verstappen (Oracle Red Bull Racing) GP Singapore 2022 – Fp1
    F1. The FIA ​​is called to defend its credibility

    Even before sports ethics, it was International Federation He is called to defend his credibility through the strict application of a regulation that he has conceived of himself and which cannot be subject to any kind of interpretation. Any decision that will be deliberate will set a precedent for everyone competitor. At the same time, the federal body is required to protect the validity of the regulatory framework and show the necessary firmness in attributing sanctions. Any sign of weakness can have dramatic effects.

    Generous competitors can follow suit Red Bull and Aston Martin You’re sure to be able to get away with some “scratches”. But are the teams’ costs manageable? The concern lies in the network of operational relationships that the same teams have with a series of external entities, to which they can delegate research and development.

    Red Bull Racing has a limited number of human resources on the team while there are hundreds of employees at Red Bull Advanced Technologies, a structure that develops advanced technologies for sectors such as cycling, aeronautics and sailing, starting with the America’s Cup.

    Always staying in the waters of the America’s Cup, there is an important collaboration between Mercedes and the English team Ineosmanaged through Mercedes Applied Sciences. In theory, there is nothing irregular in any of this. Also because more organized teams need to hold on to complex employee jobs.

    Ron Dennis awaits verdict of The Spy Story on September 13, 2007
    F1. Now what could happen? One of the scenarios might be welcome by Liberty Media

    By virtue of the numerous clues that emerged yesterday, it was not denied by the parties involved, because Red Bull A typical penalty can be described. Except for retroactive pre-sanctions on the 2021 season’s sporting score, the violation, if confirmed in accordance with the presumed order of magnitude, would have repercussions for the current season and the following season. It is conceivable to be a team Milton Keynes All points in the constructors’ championship have been omitted, similar to the penalty imposed on McLaren in 2007 as part of a “spy story”.

    Furthermore, a limitation on the hours of use of the wind tunnel and the CFD program can be assumed in connection with the 2023 single-seat project. It is difficult to anticipate penalties for drivers who are, in this case, the “distinguished victims” of their team’s unsportsmanlike behavior (similar to Alonso and Hamilton in 2007, nd).

    In this scenario, far from likely, the world championship will be revived by the unexpected duel between Ferrari and Mercedes for the prestigious constructors’ title, something Liberty Media is sure to delight. The real loser, once again, will be fan Who witnessed a somewhat distorted show financial stimulants And who are now struggling to understand the absurd dynamics of modern Formula 1.

    Author and graphics: Roberto CesserTweet embed

    picture: F1Oracle Red Bull Racing

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