Baku, October 29, AZERTAC
The Red Bull Formula 1 team is required to pay a $7 million fine and forfeit 10% of its aerodynamic development allowance after agreeing a settlement with the FIA for breaching the cost cap, according to Racing News 365.
After the Japanese Grand Prix, it was revealed that Red Bull were the only team to breach the $145 million budget cap by $1.8m.
As exclusively revealed last week by RacingNews365.com, the overspend was committed in four main areas, namely catering, sick pay, unused spare parts and United Kingdom tax rebate issue.
The team had, though, initially committed an overspend of $5.6 million which was reduced to $1.8m after clarification talks about overspend items with the governing body. These resulted in a reduction of $3.8m.
Thus, in addition to what is termed a ‘minor breach’ – below $5m – in the Financial Regulations, the team committed a procedural infringement due to not having lodged its final submissions by the 31 March deadline.
However, the FIA have today confirmed that Red Bull has settled via what is known as an Accepted Breach Agreement (ABA).
This means the team accepts wrongdoing and receives financial and sporting penalties as opposed to more draconian penalties up to and including potential points deductions or disqualification from the championship.