Horner Shares Why Red Bull ‘Begrudgingly’ Accepted ‘Draconian’ F1 Punishment

The Accepted Breach Agreement between Red Bull and the FIA dealt the team a $7 million fine and a 10% reduction in aerodynamic testing time for next season.

Christian Horner explained Friday why Red Bull entered an Accepted Breach Agreement with the FIA after it breached last year’s budget cap. 

The Milton Keynes-based team was dealt a $7 million fine and a 10% reduction in aerodynamic testing time for the next 12 months. According to the ABA, the original submission showed Red Bull came in under the cost cap by nearly $4.6 million based on the current exchange rate. However, there were 13 areas in total that the FIA determined needed to be adjusted, stating the team “inaccurately excluded and/or adjusted costs amounting to a total of £5,607,000 in its 2021 Full Year Reporting Documentation.”

As the FIA worked out the relevant costs under last year’s cap, it found Red Bull exceeded the limit by £1,864,000 (approximately $2.16 million)—1.6%, which is a minor overspending breach. However, there was an unclaimed UK tax credit of £1,431,348 (approximately $1.6 million). When taking that into account if they had correctly applied for it, the FIA acknowledged that Red Bull would have breached the cost cap by 0.37% ($500,000).

Although Red Bull accepted the penalty, Horner said Friday that they did so “begrudgingly” and described it as “draconian.” F1 rivals throughout the paddock had called for harsh sanctions to be brought against Red Bull in recent weeks as the cost cap controversy raged on. 

“Had we dragged it out through the administration process, to go to effectively appeal, that could have taken months,” said Horner. “Beyond that, the International Court of Appeal could have taken further months. So we could have been looking at a 12-month period to have this situation closed.

“The amount of speculation and commenting and sniping that has been going on in the paddock, we felt it was in everybody's interests, in our interests and the FIA's interests, in Formula One’s interests, to say we close the book. We close the book here and today.

“We accept the penalties begrudgingly, but we accept them.”

The team principal also pointed out that this is the first cost cap audit as the limit was introduced last season. He said, “The cost cap is an important part of Formula One. It's an important part of its future, but it has to be in a manner that is consistent and applicable and developed.”

Red Bull was dealt a significant penalty, particularly with the limit on testing, Horner said, but it could have been harsher if the process continued to drag on. The team boss predicts this will impact the lap time of next year’s car a fair amount as they look to defend both the drivers’ and constructors’ titles.