Timeline of the Cost Cap breach

This timeline can be used as a reference to trace the events leading up to the Cost Cap breach and to understand what actions were taken to address the breach.

The FIA, Red Bull and Aston Martin teams have come to a common ground of agreements over their respective breaches of the Financial Regulations. Since this has happened, it is worth a reminder of how the Cost Cap breaches happened to avoid the same mistake in the future.

October 31, 2019

The FIA Cost Cap regulations were announced as part of the provisional 2021 rules. However, The 2021 technical rules and regulations were delayed to 2022 because of the global pandemic Covid-19, but the Financial Regulations would remain in place and effective. The budget cap was set at $175 million for the 2021 season, but this excluded market costs, race driver fees and the cost of the team's three highest paid employees, and then it was reduced to $147.4m on May in 2020.

March 31, 2022

On this day, there is a full Year Reporting Deadline, or otherwise known as the second deadline, for all teams to submit their financial statements from January 1, 2021, to December 31, 2021, accounting for the annual spend. These financial rules and regulations state how teams must submit their financial statements, and what they must include.

May 31, 2022

The Williams team agreed to make amends for their breach of the financial regulations through an accepted breach agreement also known as ABA. The team chose to be honest and voluntarily opened up about their breach of the regulations. They stated that they failed to submit yearly or annual reports on the deadline date of March 31, 2022. After disclosing this, the team was the first team to be fined for a breach, and the penalty was $25,000 in US currency.

October 10, 2022

Rumors of reports of a Cost Cap breach began to circulate in Singapore, and one day after Max Verstappen won the 2022 Formula 1 drivers' championship in Japan. The FIA then announced that two more teams had surpassed the budget of the 2021 Financial Regulations. The two guilty teams were Aston Martin and Red Bull. Aston Martin team was found to be in procedural breach, while Red Bull were found to be in procedural breach and having committed what is known as a minor financial overspend, which is less than five percent of the Cost Cap.

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October 23, 2022

During this period of time, talks between the two teams the FIA and Red Bull over the Cost Cap breach were put on hold. This was because of the passing of the cofounder of Red Bull, Dietrich Mateschitz.

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October 28, 2022

The FIA announced that Red Bull have entered an ABA also known as the accepted breach agreement with the Cost Cap Administration. The constructors' champions were to pay $7million dollars to the FIA within thirty days of the date of execution of the accepted breach agreement. They were also to receive a ten percent reduction in allocated restricted wind tunnel testing and restricted CFD limits.

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The FIA then announced news concerning Aston Martin and that he had been fined $450,000 for a procedural breach of the Cost Cap. Red Bull team principal Christian Horner held a long press conference on Friday, giving account numerous facets of his team's breach regarding financial regulations. In his words, he described the penalties as "Draconian" and concluded his statement saying, "Now is the time to put it to bed and move on."

As of 2022,the FIA Cost Cap stood at $142.4m and is set at $135m from 2023 to 2025. However, room for a rise in line will be provided in case of inflation.

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