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F1 2022 thread - see post 1 for rules

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Comments

  • Registered Users, Registered Users 2 Posts: 11,790 ✭✭✭✭Burkie1203


    Overspent was 1.8m, which would have been 400k if a tax issue was applied correctly. That's what I'm seeing in the reports.



  • Registered Users, Registered Users 2 Posts: 1,188 ✭✭✭thefa


    Might be a bit of confusion on the numbers.

    They submitted accounts of £114.3m about £3.7m under the £118m cap.

    Adjustments required of £5.6m leaving them at £119.9m, £1.9m over the cap.

    Acknowledging that if the above was accounted for correctly and appropriate accounting for tax credits had been done, they would have been £0.4m over budget, ie £118.4m v £118.0m.

    There’s a list on the FIA statement of adjustments made but doesn’t put values against each. Catering is the first one named but it names numerous others including multiple relating to people costs (bonus & employer’s social security) and more.



  • Registered Users, Registered Users 2 Posts: 14,163 ✭✭✭✭JRant


    They had a dummy run in 2020 so no excuses for that kind of overspend.

    "Well, yeah, you know, that's just, like, your opinion, man"



  • Registered Users, Registered Users 2 Posts: 11,790 ✭✭✭✭Burkie1203


    Well why were the FIA clarifying things in June 2022 so?



  • Site Banned Posts: 12,341 ✭✭✭✭Faugheen


    What’s the point of a cost cap if the punishment is so low?

    Red Bull had a driver winning the Championship while overspending on their budgets, which also would have included R&D for their car this year.

    After all the gaslighting of catering budgets and all of that bollocks, they should have been stripped of their constructors championship points. They should have been stripped because of the breach and then for blatantly lying about it.

    However the FIA go too soft on their own rules again. I’d be fuming if I were Ferrari and Mercedes.



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  • Registered Users, Registered Users 2 Posts: 4,161 ✭✭✭Hijpo




  • Registered Users, Registered Users 2 Posts: 12,971 ✭✭✭✭Frank Bullitt


    I'd say the rest of this weekend will be full of digs thrown at each other now.

    "Red Bull Racing was found to be in breach, however, the Cost Cap Administration recognised that Red Bull Racing has acted cooperatively throughout the review process and has sought to provide additional information and evidence when requested in a timely manner, that this is the first year of the full application of the Financial Regulations and that there is no accusation or evidence that RBR has sought at any time to act in bad faith, dishonestly or in fraudulent manner, nor has it wilfully concealed any information from the Cost Cap Administration."

    Fia also acknowledged that RB didn't try to mislead the FIA.



  • Registered Users, Registered Users 2 Posts: 14,163 ✭✭✭✭JRant


    Because they are always giving clarifications.

    "Well, yeah, you know, that's just, like, your opinion, man"



  • Registered Users, Registered Users 2 Posts: 14,163 ✭✭✭✭JRant


    I think a lot of the discussion will be around just how lenient the punishment is. Leaving aside the talk of stripping titles, because that was never an option, they have come away from this with nothing more than a stern talking too and a reduction in wind tunnel/CFD time that will have no effect.

    What this message send out is that teams can overspend up to the 5% mark with no real punishment.

    "Well, yeah, you know, that's just, like, your opinion, man"



  • Registered Users, Registered Users 2 Posts: 4,161 ✭✭✭Hijpo


    Which is the big thing when it comes to points deductions



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  • Registered Users, Registered Users 2 Posts: 12,971 ✭✭✭✭Frank Bullitt


    The FIA will also have to change their process in order to stop other teams overspending like this. It is the first year of the cap, so it was bound to have problems. The main take away is that this wasn't cheating at all.



  • Registered Users, Registered Users 2 Posts: 12,971 ✭✭✭✭Frank Bullitt


    Exactly.

    If RB had tried to mislead the FIA, then throw the book at them. But they did not attempt to do that.



  • Registered Users, Registered Users 2 Posts: 14,163 ✭✭✭✭JRant


    Cheating such a subjective term and almost always impossible to prove. You can never know the intent behind an action, unless you're a mind reader or they are dumb enough to fully document it.

    The biggest issue the FIA have now is precedent. Any future breaches less than 5% that recieve harsher penalties is just going to end up in the courts unless they can prove the team was being dishonest/cheating on purpose.

    "Well, yeah, you know, that's just, like, your opinion, man"



  • Site Banned Posts: 12,341 ✭✭✭✭Faugheen


    Call it tripe all you want, but nothing will convince me that RB didn’t know what they were doing.

    A well-oiled machine like that makes a balls of the cost caps when nearly every other team (most with far less resources) didn’t?

    Anyone buying it is having a laugh. The problem for the FIA is that they can’t prove it.



  • Registered Users, Registered Users 2 Posts: 21,041 ✭✭✭✭El_Duderino 09


    Ah shur, like anything in F1, it's a compromise. It's not simply a sport where the rules are applied whatever the consequences. It's a business and entertainment 'circus' also.

    The bigger teams will always have more influence over making rules and how rules are applied. Red bull is a big team with a long history as sponsor and team owner. F1 was never going to genuinely harm them with the punishment. So they allowed RB to negotiate their own punishment to avoid upsetting one of their main stakeholders. God help them if they ever have to punish Ferrari. They'll probably do ot in secret as they did with the dodgy engine a few years ago.

    If the FIA manage to stop costs spiraling and the smaller teams can catch up to an extent, then they'll be happy. There's little they can do about their main teams breaking the rules. All they have to do is threaten to walk away and the FIA is bunched. This whole thing is pretty shady and I doubt we'll ever know the actually details. No point pretending we do.



  • Registered Users, Registered Users 2 Posts: 11,790 ✭✭✭✭Burkie1203


    Whats the point of a cost cap if it doesn't include billions spent on engine development etc, or driver salaries etc


    It's pointless unless teams aren't able to spend large sums of money elsewhere to gain performance on the track.



  • Registered Users, Registered Users 2 Posts: 12,971 ✭✭✭✭Frank Bullitt


    Cheating in this context is pretty clear though. RB were upfront with the FIA and had discussions with them about the whole thing, there was no misleading by RB to try and hide costs etc, add in the amount they were over by and if this is "cheating", it is not done very well at all.

    The intent here is the misinterpretation of costs and tax credits etc. It is a mistake, there is no malice behind it at all, even the FIA said this.



  • Registered Users, Registered Users 2 Posts: 12,971 ✭✭✭✭Frank Bullitt


    I think you are getting into conspiracy theory territory there with your last sentence.



  • Registered Users, Registered Users 2 Posts: 9,558 ✭✭✭PsychoPete


    Sky coverage will be unbearable this weekend with them banging on about this



  • Registered Users, Registered Users 2 Posts: 4,659 ✭✭✭bennyx_o


    image.png

    Picture showing the history of Sauber in F1. 2010 has to be the stand out



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  • Registered Users, Registered Users 2 Posts: 14,163 ✭✭✭✭JRant


    I think you've taken me up wrong here. I wasn't implying that RB cheated, far from it. Just trying to highlight how difficult a charge of cheating would be to apply, especially in a sport with so many interpretations and clarifications.

    There's no indication they tried to hide anything from the FIA, they did try to stretch some of the interpretations a bit to far though. They seem to have been on the level with the FIA. Honer should have kept quiet on the entire issue though, he's come out of this with more than a little egg on his face after his very strong words a couple of weeks back.

    "Well, yeah, you know, that's just, like, your opinion, man"



  • Registered Users, Registered Users 2 Posts: 1,188 ✭✭✭thefa


    Think it would be tough to use as a precedent for all overspends less than 5%. The amount of the overspend is called out at 0.37% and noted at the lower end of a minor breach. Would be nice if they clarified the basis for it.



  • Registered Users, Registered Users 2 Posts: 1,411 ✭✭✭KillerShamrock


    How is the use of tax credits fair in this im sure all the uk based teams used them but what about Ferrari/alpha tauri (Italy) and Sauber/alfa (switzerland I think) and Haas (but they have a UK headquarters) they arent uk based would they get the same treatment same level of tax credits/amount refunded?

    It should be spending before tax credits so that means red bull were at least 5+ million over the what about the rest of the teams are they all over too? most likely!

    Looking at it like that 5Mill + over on catering and social security makes this look even more dodgy they just couldnt pair it down by 400K.

    Apparently the FIA got them down from 1.8mill to 400k using a tax credit they missed.

    Sorry but you set a cost cap it should be that and that only, no tax credits or anything to help you skirt rules or cheat the system you are given a budget of £135mil you should be made stick to it all things final no ifs, ands or buts. You dont you lose points or get DQ'd from one or both championships or have the fine taken from your next years budget. Not this Paltry slap on the wrist the Red bull got.

    This is Fernando is faster than you territory all over again something that they claim is enforcable but clearly isnt and has already been made a mockery of most likely by all teams red bull just got caught out and by accepting the ABA they are not denying despite Horner insisting they were well below.



  • Registered Users, Registered Users 2 Posts: 14,163 ✭✭✭✭JRant


    It's a 1.6% overspend, as per the FIA and agreed to by RB. That's why it's going to be a difficult to argue it's not a precedent.

    "Well, yeah, you know, that's just, like, your opinion, man"



  • Registered Users, Registered Users 2 Posts: 12,971 ✭✭✭✭Frank Bullitt


    Toto as well, he had said that a team was "massively" over the budget. That isn't the case either.



  • Registered Users, Registered Users 2 Posts: 21,041 ✭✭✭✭El_Duderino 09


    I hadn't realised it would include tax credits. It would be interesting to see how much they spend before the tax credits in each country. I'd be surprised if local corruption doesn't come into play. Teams with the ability to lobby government to carve out tax breaks.

    I wonder will there ever be an incebyto outsource some production to low wage economies like China or Eastern Europe. Presumably they could smudge is all over with more national borders and more tax regimes.



  • Registered Users, Registered Users 2 Posts: 14,163 ✭✭✭✭JRant


    In fairness to Toto, 1.8 million is a massive amount of money. The big difference is that he's not the one currently in breach of the rules so I'll cut him a little slack on this one.

    "Well, yeah, you know, that's just, like, your opinion, man"



  • Registered Users, Registered Users 2 Posts: 77 ✭✭Munstersrebel


    h

    toto is the biggest gaslighter in F! he and his manbaby Hamilton. Remember how he could 'barely' get out of the car and Sky lapping it up and hyping it. And then the FIA decides to enforce an addon to the chassis and surprise surprise Merc has an homologated example within 48 hours from the FIA releasing it to combat the porpoising. And toto gleefully predicting it would hamper his opponents speed. Add to this that his former personal lawyer joined the FIA...


    But sure blame RB. Merc and ferrari hide this costs in the other business components and none cares... because Sky dont care and LH benefits from it...

    Mercedes AMG Media network is Sky's new name



  • Registered Users, Registered Users 2 Posts: 13,406 ✭✭✭✭dulpit


    The annoying elements here are that red bull said (on f1 show earlier) that they didn't do the trial run last year. So any honest mistakes that could have been ironed out didn't get a chance.

    And realistically, if you polled everyone last year and asked which team was most likely to breach the cost cap, I'd wager nearly everyone would have said red bull.

    I did see a great suggestion that a better punishment is ballast to the car. The greater the overspend the heavier the ballast. Weight has such an impact it would cause major issues, would bring teams into line.



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  • Registered Users, Registered Users 2 Posts: 13,406 ✭✭✭✭dulpit


    Oh and I also saw that the fine isn't counted in the cost cap, so for the big teams it doesn't affect them at all. For the teams that are not yet at the cost cap a fine would cripple them, seems very unfair.



This discussion has been closed.
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