I hope the rumors are not true as how much drama can one sport take. If the cost caps have been breached then the penalties need to be so severe no one dares to even test the cost cap. Mistakes can happen, but then again this sport is driven by data and accounting is only numbers so that is no excuse either.
The Formula One paddock rumor mill is in overdrive this weekend with the allegations flying around that 2 teams have breached the cost cap put in place last year. The weird thing is the rumors are normally spot on and someone knows something is a foot. When it comes to serious allegations like these then they are always right as slandering or insinuating such can end up in court costing you along with your name and integrity.
The two teams in the spotlight are the "Championship" winning team Red Bull and Aston Martin. The cost cap was set in place to create a level playing field as some teams have more resources than others and it was deemed an unfair fight. $147.5 million covers the teams cost including all development, wind tunnel, staff wages transportation to and from races with the only exception being team principal salaries and drivers salaries. This figure of $147.5 million has seen teams retrenching staff as not that long ago many were spending in excess of $400 million per season.
The penalties for such an eventuality are rather severe as this is the regulations put into place to make the Championship fair for everyone. If the cost cap has indeed been breached the possibility of a fine is highly unlikely unless we are only talking about being a fraction over. Less than 5% is what many believe to be that fraction.
The teams are not stupid and cannot be taken for fools either as they know how much upgrades cost and the development costs that go into each and every part. To remain at the top is not easy and you have to balance development work not only on that seasons car, but also the following seasons additions.
The rumors about Red Bull in particular are rather concerning as they involve not only last years budget, but also this years. The talk is they are way over last years cap and have exceeded this years as well. Don't ask how anyone knows this as somehow this information has been leaked. The real story will be announced later this week after the Malaysian Grand Prix in Singapore.
This is a bit like an audit when accountants dig around the books in the office and gather all the relevant information. There is no comeback if you are found to have breached financial protocols in place and the penalties are severe.
The FIA talk about minor and major offences with the minor resulting in a slap on the wrist along with a fine. The major however is a serious penalty and would have severe consequences.
Last years Championship battle went down to the wire and wouldn't it be ironic that Mercedes are awarded the title after having been robbed due to manipulating the rules in the first place. No one saw this coming and as Red Bull are about to seal the Championship this season which is also now in doubt.
The budgetary cap was mentioned by Ferrari this week with regard to their technological disappearing floor as they have scrapped this due to costs and the grey are with regard to regulation. Mercedes and Ferrari know for Red Bull to achieve the results they have with multiple upgrades taking place at regular intervals their budget has to be in question.
Normally over one season the times improve by up to half a second from testing to the final race all down to spending the budget in the right areas. That time costs millions and millions to achieve and is never cheap. Nothing is cheap on a Formula One car if we can recall after one crash the Red Bull team asking for the safety team to return certain bits of carbon fiber that was on the track.
Where There Is Smoke There is Fire
Remember this is still the paddock rumors as there is no announcement until next week and whatever is announced will be how nay breach regarding budget caps are policed going forward. Paying a fine wont work as that sends the wrong message as then there is no budget cap anymore as the bigger teams will disregard that part of the agenda. Points is what counts or disqualification from that period you were deemed over or disqualification for the season altogether depending how much you have gone over.