Everyone in Compliance
The saga of the 2022 budget cap has concluded, and unlike last year for the controversial 2021 season, there won’t be thorny disputes between some teams and the FIA. In an official statement released by the international federation itself, the Cost Cap Administration – the body that regulates compliance with the F1 teams’ spending cap – reported that they have completed the examination of the financial reporting documentation submitted by the teams and have issued certificates of compliance to all ten teams.
The FIA Statement: Assessing Extra-F1 Activities
This means that all teams have adhered to the $141.2 million spending cap. “The examination was an intense and in-depth process,” reads the statement on the Federation’s website, “beginning with a detailed analysis of the documentation submitted by the teams. Additionally, a thorough check of all the extra-F1 activities undertaken by the teams was conducted, including multiple on-site visits to team facilities and meticulous verification procedures to assess compliance with the Financial Regulations. The FIA Cost Cap Administration notes that all competitors acted in good faith and cooperated throughout the entire process.”
It’s worth noting the emphasis placed by the FIA on ‘extra-F1’ activities, which had certainly been the most talked-about and debated in recent months. Many teams, especially the wealthier and more powerful ones, have dedicated technological research and development divisions to other sports – from sailing to cycling – or the production of road cars or other categories. Many had doubted the possibility of accurately controlling the resources allocated to F1 versus those used in other projects. The federation has chosen to express itself clearly on this point, certifying the correct operation of the teams.
Rumors Denied, No ‘Red Bull Case’
12 months ago, right around this time, the ‘Red Bull case’ erupted, with the Milton Keynes team ultimately being fined and penalized in the use of the wind tunnel for irregularities found in the 2021 budget. This year, fortunately, the matter ends here without further consequences. The summer rumors that speculated irregularities by two or three teams have been completely refuted. The federation has reiterated its strong belief in the budget cap tool and its readiness to strengthen and further refine it in the coming years.
The Federation’s Reinforcement: An Essential Tool
“Financial Regulations,” the FIA official statement continues, “are essential for the long-term financial stability of the sport and will continue to be developed and refined based on the results of each review process, both regarding the regulations themselves – which are written and approved within the FIA Formula 1 governance process – and regarding how they are applied and monitored. The FIA has made and will continue to make significant investments in this department for the collective benefit of the sport.”
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