Williams was fined $25,000 after violating Formula 1’s cost caps regulation Williams was fined $25,000 (PS20,000), for violating Formula 1’s cost caps regulations. This team failed to submit 2021 accounts by 31 March 2022 and is the first to be penalized under the cap, which was introduced last year.
The FIA stated that Williams had already informed the rule-makers of the problem. This year, the cap was reduced to $140m from $145m (PS114m in 2021). To compete, the F1 team must have a budget. The cost cap is a limit on how much they can spend in a given year.
Williams was found guilty of a “procedural violation” of the rules. He had to pay the costs incurred both by cost cap administrators and the fine. This development is occurring as teams battle for an increase to the cost cap, which will drop again to $135m by 2023.
- However, a number leading teams argue that global inflationary pressures should lead to a representative increase.
- Christian Horner, principal of Red Bull Team, said that some teams may have to miss a few races later in the season if the governing body, the FIA doesn’t grant the concession.
- Alpine, however, argued that those who are unable to reach the cap should spend less on development.
- Mattia Binotto, Ferrari team boss, said last month at the Monaco Grand Prix that “I’m pretty certain that at some point we will go over.”
- “The regulations have a threshold at 5%. It will be considered minor breach if you don’t exceed the budget cap threshold of 5%.
- “What is a minor violation in the case of force majeure?” What penalties will the FIA and the stewards decide?
“No idea, but I don’t think there’s any way for us (and many other teams) to simply stay in, and even laying off people, I don’t think that’s a good or right choice.”
Toto Wolff, Mercedes F1 boss, stated: “Having a raging conflict in Ukraine and the implications it had on energy prices was not something that could have been foreseen. There needs to be some compromise between teams who oppose an inflationary adjustment or those who support it.”
Otmar Szafnauer, principal of the Alpine team, stated that most teams prepare their budgets for the next year in November and December. We are no exception. At that time, inflation was already at 7.2%. RPI in England was 7.2% at 7.1.
“We considered that when we created our budgets and laid out the development work we would do. We’re still within the budget, even though freight was slightly more expensive than we expected. We plan to be there by the end of this year. We’ll adjust the development accordingly.”