What's next for Red Bull?

Red Bull is constantly looking for new ways to innovate and stay ahead of the competition, so what new products or initiatives will they come up with next?

After the acidic denials from the team and a status quo statement from the FIA, it is now clear that Red Bull broke the budget cap rules in 2021, but the now the million-dollar question is, what's next for the team? 

In an interview with Drive to Survive, Red Bull team principal Christian Horner said that if a person wants something badly, they will do anything to get it. It appears that quote may be more accurate than we fathom. As the rumors of a team being in breach of the cost cap regulations picked up pace in the last two weeks, the word was that Red Bull had overspent its 2021 budget.  Horner threatened any legal action against those he claimed were making unclear accusations and continuously denied all wrongdoing.

In an interview with Sky Sports, the Mercedes team Principal Toto Wolff denoted that Red Bull had been under an investigation for weeks and months. Yet Horner and Red Bull remained aggressively disobedient, the two men once again were at arms in an exchange of harsh words in the media. Horner was constant in bringing out that his team was obedient and did not breach the Cost Cap. Everything was to be revealed to the world on 5 October, when compliance certificates would be published.

However, it is not the first time in the year 2022, that the FIA delayed an important, crucial decision and publication although this time for the right reasons, the publication was delayed until October 10th. As is often the case in Formula One, where there’s smoke there's fire, and the Red Bull team had indeed been found guilty of a minor Cost Cap breach. A Minor in the FIA’s regulations is 5% or below. However, in a $140m cost cap, that is still an overspend of up to or below $7 million dollars. The punishments for the team are unknown at this stage, but this could have huge complications for the sport.

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Now the question is what could the team have overspent on? $2 million dollars is a huge figure, and depending on what the component is, the difference to a team’s season can be substantial. From my personnel point of view, Glassdoor can give us an indication of Red Bull’s cost analysis. A senior engineer can demand a £100,000 salary, while an Aerodynamics is on £55,000. However, it is important to note that personnel charges are included in the Cost cap budget, therefore it is highly unlikely that this is the cause or stimulus of the breach.

It is in car components where the real difference is made. It is not just simply the cost of the component itself, but the project that has to undergo research, to manufacture and develop it during a season that calls for high funds. Lewis Hamilton stated that a $300,000 project for a floor could determine winning a championship. Intel from the Red Bull’s site elucidates that the engine, transmission, and chassis are the most expensive components of the car, pricing a current car at $12 to 15 million dollars.

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