What Would Happen to Red Bull and Max Verstappen if Found Guilty of Alleged Budget Cap Fraud?

When Max Verstappen crossed the checkered flag in Abu Dhabi last year, he made history, especially by becoming the first Dutchman to win the F1 title. But it seems like the 2021 F1 World Championship has still not ended. Dark clouds swirl around Red Bull’s triumph in the form of rumors of a budget cap breach.

The FIA announced a budget cap of $145 million for the 2021 season. The accounts of which were sent over this March and are to be evaluated very soon.

According to Auto Motor und Sport, “two teams are said to be over the limit, one of them significantly. The rumor is circulating in the paddock that it is Red Bull.” (translated using Google)

If Red Bull breached the cost cap by 5% which would amount to about $7.25 million, it would be a “minor sporting penalty”.

That could mean a public reprimand, deduction of world driver’s championship points, world constructor’s championship points, suspension from one or more races, or limits on aerodynamic testing.

On the other hand, if the breach is higher than 5% that could potentially mean a ‘material sporting penalty’ which includes exclusion from the championships. In addition, the Cost Cap Adjudication Panel has the power to impose increased monitoring with respect to the F1 team.

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And whatever the penalty, they will invoke it for the already controversial 2021 season. Is there a possibility that last year’s championship results might yet change?

Red Bull team principal is confident about their chances

While Auto Motor und Sport insists that the breach must be higher than 5%, possibly bleeding into the 2022 season cap as well, the FIA is yet to confirm anything.

An FIA spokesperson said: “The FIA is currently finalising the assessment of the 2021 financial data submitted by all Formula 1 teams. Alleged breaches of the Financial Regulations, if any, will be dealt with according to the formal process set out in the regulations.”

Meanwhile, Red Bull team principal, Christian Horner, is “very confident” about their submission.

“The accounts were all submitted way back in March, so it’s been a long process with FIA going through, and we’re in that process as we speak,” said Horner in an interview during the practice session for the Singapore Grand Prix.

“Certainly, our submission was below the cap. It’s down to the FIA to follow their process, which they’re currently doing.”

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Next week, the FIA will finally release its verdict on the budgets. We will only get to know for sure whether these rumors are true or not then.