Have multiple Formula 1 teams breached spending limits? Rumors of suspicious financial tricks are causing a stir ahead of the Hungary race.
The suspicion of financial fraud also alarmed the boss of Formula 1. Amid renewed rumors about violations of at least two teams against the spending limit, managing director Stefano Domenicali warned the world association to impose severe sanctions.
“I want the penalty in the event of an infringement to be sporting, we clearly demanded that,” said the Italian. The fact that Max Verstappen’s Red Bull team is dominating this season despite a penalty imposed last year for breaching the financial rules further intensifies the debate about the budget limit.
Trickery at the budget cover?
Media reports about alleged trickery in the budget cover hit Formula 1 at a sore point before the Hungarian guest appearance this weekend. The specialist portal “motorsport.com” wants to know about three racing teams that probably spent more than allowed last year. “Auto, Motor und Sport” reports on at least two teams that have made themselves suspicious.
The world association and Formula 1 had long argued about the budget limit, and in 2021 it came into effect at a rate of $145 million for the season at the time. This year, including inflation adjustment and a bonus for the higher number of races, it is just over 150 million dollars, the equivalent of around 135 million euros. The aim is to make the teams economically profitable and to increase equal opportunities.
The example of the industry leader Red Bull, of all things, fuels doubts about the effectiveness of the set of rules. The team was fined around $7 million for overspending by $1.8 million. In addition, Red Bull is allowed to use its wind tunnel ten percent less this year for the aerodynamic development of its car. The case kept the racing series in suspense for weeks last year. The sanction could not stop the employer of world champion Verstappen. On the contrary.
Red Bull dominance crushing
Red Bull has won all ten races so far this year, eight of them by Verstappen. Most recently, the Dutchman won six times in a row. Sebastian Vettel’s record of nine race wins in a row seems within reach for the world championship leader. With his 255 World Championship points, Verstappen alone would lead the team classification.
“From my point of view, that wasn’t a penalty. It was very low,” said Ferrari team boss Frederic Vasseur recently about the sanctions against Red Bull. A team could gain about a second from aerodynamic development over the course of the season. Red Bull have therefore only lost a tenth.
And so many a competitor could think that a calculated breach of the budget rules could be worthwhile if the sanction doesn’t hurt that much. There are still plenty of gray areas anyway.
Subsidiaries that officially design super sports cars or boats and are therefore not subject to the Formula 1 financial rules are particularly popular. In the past, however, the transfer of knowledge from the engineers employed there has benefited the racing teams.
FIA wants to close loopholes
The world association Fia is trying to close loopholes like this this year with a new directive. In addition, the rule guards significantly increased the number of auditors. The teams now have to answer around 100 questions as part of cost control. According to team boss Toto Wolff, 46 employees at Mercedes monitor compliance with the budget cap “down to the last screw”.
The first phase of the examination by the world association should be completed by the end of July, followed by checks on suspicious teams. The Fia still speaks of “unfounded reports” when it comes to alleged financial sinners.
Possible sanctions range from a warning to point deductions, the partial exclusion from race weekends to a lower budget limit for the transferred team. Formula 1 boss Domenicali is pushing for the process to be completed quickly. “I’m just saying that because that way it doesn’t lead to speculation and statements that aren’t good for anyone,” said the former Ferrari team boss. The rumor mill should continue to simmer at the Hungaroring for the time being.
Source: Stern
I am Pierce Boyd, a driven and ambitious professional working in the news industry. I have been writing for 24 Hours Worlds for over five years, specializing in sports section coverage. During my tenure at the publication, I have built an impressive portfolio of articles that has earned me a reputation as an experienced journalist and content creator.
