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The FIA's 2022 cost limit has been adhered to by each of the ten Formula 1 teams, and there have been no violations found. It is worth noting that this unanimous compliance follows previous infringements that occurred during the 2021 Formula 1 season. The adherence of all ten Formula 1 teams to the 2022 cost limit has been officially certified by the Fédération Internationale de l'Automobile (FIA). For the second year in a row, teams have been restricted to spending no more than USD 140 million USD. However, with adjustments for more races and inflation, the total budget for the year is expected to be about USD 145.5 million. The Cost Cap Adjudication Panel put forth extra effort this year, reviewing 2022 season team applications in great detail. The findings have shown favourable outcomes, demonstrating general adherence across all participants. Following a tumultuous week in July, during which the FIA felt obligated to dispel reports that two teams had exceeded the statutory cost maximum, the teams have joined together to present a unified face.
F1 Cost Cap: What did FIA say?
After the conclusion of the submissions for the year 2022, the FIA conducted a comprehensive analysis of the reporting paperwork provided by each of the ten teams. As a result of this evaluation, the FIA has subsequently granted certificates of conformity to all teams involved.
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The FIA said, "The review has been an intensive and thorough process, beginning with a detailed analysis of the documentation submitted by the competitors. Additionally, there has been an extensive check of any non-F1 activities undertaken by the teams, which comprised multiple on-site visits to team facilities and careful auditing procedures to assess compliance with the Financial Regulations. The FIA Cost Cap Administration notes that all Competitors acted at all times in a spirit of good faith and cooperation throughout the process."
"The FIA also notes that the Financial Regulations are essential to the long-term financial stability of the sport and that they will continue to be developed and refined based on the findings of each review process both in terms of the regulations themselves, which are written and approved under the FIA Formula 1 governance process, and the way in which they are enforced and policed. The FIA has made and will continue to make significant investments in this department for the collective benefit of the sport," FIA added.
F1: What Happens if Cost Cap is Exceeded?
To avoid situations where teams see the benefits of exceeding the cost cap outweighing the penalty, penalties are not clearly defined. It's also worth noting that point-reduction punishments only apply to the season in which the infringement happened, meaning that championships may be altered even though they seemed to be won nearly a full year earlier.
If a team exceeds its budget by less than 5 per cent, it is considered a "minor" violation and may result in penalties such as fines, deductions of points, or limitations on the development of the car. Any more infractions would constitute a significant violation, potentially leading to more severe punishments and the potential expulsion of a team from the competition.
F1: Red Bull's 2021 Cost Cap Breach
There have been some minor bumps in the budget throughout time. The overlook resulted in a decrease in the duration of development activities conducted in the wind tunnel, subsequently leading to the imposition of a financial penalty. Similarly, both Williams and Aston Martin have previously had procedural challenges with the 2021 limit but managed to stay well inside the specified budget boundaries.
In 2021, Red Bull was deemed to have violated the cost cap threshold, resulting in the imposing of a financial penalty of USD 7 million. Additionally, as a consequence, the team's aerodynamic testing privileges were limited by 10 per cent for a period of 12 months.
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