The cost cap breach saga of Red Bull took place during the 2022 Formula One season and became the first ever most controversial topic to exist in the sport. By breaching the $145 million cost budget of 2021, Red Bull became the first team to commit the crime. When FIA implemented the budget regulations ahead of the 2021 season. They did it with the motive of organizing financial stability in Formula One.

No teams were supposed to breach the budget even by a penny. Otherwise, very strict sanctions will be taken; this was announced right before the season began. Mercedes, Red Bull, and Ferrari all together, were against the regulations as they were expensive teams, and the allocated budget was too low. Mercedes and Ferrari somehow managed to be under the cap, but Red Bull could not remain under the low budget. Knowingly or unintentionally, they breached the budget by almost $2 million.


Red Bull tried to cover up the breach, and FIA finally discovered that the team exceeded the budget only by $0.5 million. The team got penalized for minor overspending. A $7 million fine and a 10% deduction in the Wind Tunnel testing have been slapped on Red Bull in the form of the cost cap breach penalty.

“FIA Is Watching Them All! Don’t Cover Up The Budget Breach” Said The President.

The reputational damage and the “draconian” punishment were already enough for the rest of the teams in the sport to know what happens if one dares to breach the budget. In addition, FIA itself came to give an extra warning. The president of the governing body, Mohammed Ben Sulayem, has suggested no teams should try to cover up the breach of the cost cap. He has warned that FIA is watching everyone with everything they are doing. So no one even dare to cover up or commit any kind of overspending.

Recently, after the 2022 season ended, Red Bull’s principal, Christian Horner, came out to claim that at least “six teams” have committed budget breaching this season. He believed that the teams could be at risk of overspending as the energy prices are touching the sky. [These days especially in Europe].


According to Horner, Red Bull faced a draconian punishment for breaching the budget by such a minor budget which the team still does not accept. Now that six teams [according to him] have exceeded the cost cap, what punishment will be given to them? Horner thinks that Red Bull is just the predecessor of what is waiting in the future.

When FIA released its final reports, Max Verstappen had already won his second title. FIA was criticized for its late reports, and so this time, they are doing everything on time. Mohammed Ben Sulayem said, “FIA is very clear about what happened with Red Bull and Aston Martin. And we have made sure that nothing was hidden, we are very transparent.”

In an interview with, Ben Sulayem explained that FIA went through the investigation. And, then presented the results to the public. He said, “I hope nobody can use the cost cap and try to cover up things. F1 teams needed to know that FIA is watching them.” He explained that all the teams should know that FIA is their government. Keeping an eye on all the teams is their beauty and responsibility.

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