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Brown: Cost cap breaches constitute cheating

Zak Brown. Credits: @Formula_Nerds (Twitter).

McLaren CEO Zak Brown states in his letter to the FIA that tougher penalties should be applied to the teams that violate the budget cap.

The FIA confirmed last week that Red Bull Racing and Aston Martin failed to comply with the budget cap regulations in 2021. The organization clarified that Aston Martin had a procedural breach, while Red Bull committed a procedural breach and minor overspending. However, punishments for the teams were not announced.

Firstly reported by the BBC, Brown wrote a letter to FIA president Mohammed Ben Sulayem, F1 CEO Stefano Domenicali, and the teams that managed to comply with the budget cap rules.

In the letter, Brown expressed his view on the impact of the breaches on competition and proposed his way of punishing the teams that had violated the rules.

“The overspend breach, and possibly the procedural breaches, constitute cheating by offering a significant advantage across technical, sporting, and financial regulations,” the letter reads.

“The FIA has run an extremely thorough, collaborative, and open process. We have even been given a one-year dress rehearsal [in 2020], with ample opportunity to seek any clarification if details were unclear. So, there is no reason for any team to now say they are surprised.

“The bottom line is any team who has overspent has gained an unfair advantage both in the current and following year’s car development.

“We don’t feel a financial penalty alone would be a suitable penalty for an overspend breach or a serious procedural breach. There clearly needs to be a sporting penalty in these instances, as determined by the FIA.

“We suggest that the overspend should be penalized by way of a reduction to the team’s cost cap in the year following the ruling, and the penalty should be equal to the overspend plus a further fine – i.e. an overspend of $2m in 2021, which is identified in 2022, would result in a $4m deduction in 2023 ($2m to offset the overspend plus $2m fine).

“For context, $2m is [a] 25-50% upgrade to [an] annual car-development budget and hence would have a significant positive and long-lasting benefit.

“In addition, we believe there should be minor overspend sporting penalties of a 20% reduction in CFD and wind tunnel time. These should be enforced in the following year, to mitigate against the unfair advantage the team has and will continue to benefit from.

“To avoid teams accumulating and benefiting from the multiplier effect of several minor overspend breaches, we suggest that a second minor overspend breach automatically moves the team to a major breach.

“Finally, given the financials involved, a 5% threshold for a minor overspend breach seem far too large of a variance. We suggest a lower threshold, 2.5%, is more appropriate.”

Brown added: “It is paramount that the cost cap continues to be governed in a highly transparent manner, both in terms of the details of any violations and related penalties.

“It will also be important to understand if, after the first full year of running and investigating the scheme, there needs to be further clarity on certain matters or any key learnings. Again, any insights or learnings should be shared across all teams – there can be no room for loopholes.

“The cost cap introduction has been one of the main reasons we have attracted new shareholders and investors to F1 in recent years, as they see it as a way to drive financial and sporting fair play.

“It is therefore critical that we be very firm on implementing the rules of the cost cap for the integrity and the future of F1.”

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