2022 budget cap violations

[denyall]

Like watching paint dry.......

Except you know how shiny the paint will be. Oh, hang on..


But it is good news really.

Good news for sure, especially for the mods .

[napoleon1981]

Good news!

Redbull might be in trouble this year.... they had to order additional trophy cabinets that were not in the budget. Those wikipedia records are pressing on the budget cap. Wonder if Mercedes had them on sale?

[Just_a_fan]

Good news!

Redbull might be in trouble this year.... they had to order additional trophy cabinets that were not in the budget. Those wikipedia records are pressing on the budget cap. Wonder if Mercedes had them on sale?

Luckily, even Red Bull would know that trophy cabinets would not fall under the cost cap, just as updating their Wiki page doesn't.

[AR3-GP]

Not hugely surprised

The more teams involved, the more likely the FIA would be to acknowledge and concede to a common struggle point (like inflation or energy cost). It wouldn't make sense to announce that 6 or 7 teams breached the cap.

[ValeVida46]

The more teams involved, the more likely the FIA would be to acknowledge and concede to a common struggle point (like inflation or energy cost). It wouldn't make sense to announce that 6 or 7 teams breached the cap.

How would that play to the other 3 or 4 teams when the FIA couldn't keep a lid on a jam jar?

It literally doesn't make sense to cover up and became party to conspiracy, as the alternative is an order of magnitude better for the FIA than the cataclysmically worse alternative.(translated using google greek)

[AR3-GP]

The more teams involved, the more likely the FIA would be to acknowledge and concede to a common struggle point (like inflation or energy cost). It wouldn't make sense to announce that 6 or 7 teams breached the cap.

How would that play to the other 3 or 4 teams when the FIA couldn't keep a lid on a jam jar?

It literally doesn't make sense to cover up and became party to conspiracy, as the alternative is an order of magnitude better for the FIA than the cataclysmically worse alternative.(translated using google greek)

I suppose you are correct. It's much more desirable if everyone was actually squeaky clean this year, no games. If it was truly the case, it's an encouraging development for the future of the cost cap.

[peewon]

Not hugely surprised

The more teams involved, the more likely the FIA would be to acknowledge and concede to a common struggle point (like inflation or energy cost). It wouldn't make sense to announce that 6 or 7 teams breached the cap.

RB would also have come under the cap had the rules been more clearer from the FIA from the start. The spend on parts for old cars for promotional purposes was initially not counted but later altered to count. This came very late in the day and RB was later caught out by not receiving the tax rebate they had anticipated. The difference was minimal despite the whingeing of rival TPs.

[dialtone]

The more teams involved, the more likely the FIA would be to acknowledge and concede to a common struggle point (like inflation or energy cost). It wouldn't make sense to announce that 6 or 7 teams breached the cap.

RB would also have come under the cap had the rules been more clearer from the FIA from the start. The spend on parts for old cars for promotional purposes was initially not counted but later altered to count. This came very late in the day and RB was later caught out by not receiving the tax rebate they had anticipated. The difference was minimal despite the whingeing of rival TPs.

Tax rebates should never count anyway. Top line spend should be the only thing that matters, raise the cap if needed. Having local laws determine how much you spend is so backwards I can’t even begin to describe it.

[Just_a_fan]

The more teams involved, the more likely the FIA would be to acknowledge and concede to a common struggle point (like inflation or energy cost). It wouldn't make sense to announce that 6 or 7 teams breached the cap.

RB would also have come under the cap had the rules been more clearer from the FIA from the start. The spend on parts for old cars for promotional purposes was initially not counted but later altered to count. This came very late in the day and RB was later caught out by not receiving the tax rebate they had anticipated. The difference was minimal despite the whingeing of rival TPs.

If RB had done the dry run audits that the other teams did with the FIA, they'd have found these things out and avoided their mistake.

Hubris on the part of RBR is to blame, not the process which every other team was able to navigate successfully.

[peewon]

The more teams involved, the more likely the FIA would be to acknowledge and concede to a common struggle point (like inflation or energy cost). It wouldn't make sense to announce that 6 or 7 teams breached the cap.

RB would also have come under the cap had the rules been more clearer from the FIA from the start. The spend on parts for old cars for promotional purposes was initially not counted but later altered to count. This came very late in the day and RB was later caught out by not receiving the tax rebate they had anticipated. The difference was minimal despite the whingeing of rival TPs.

If RB had done the dry run audits that the other teams did with the FIA, they'd have found these things out and avoided their mistake.

Hubris on the part of RBR is to blame, not the process which every other team was able to navigate successfully.

FIA changed a regulation in June in typical FIA fashion. RB copped the penalty and moved on. The point was that had the regulations been properly defined, they would have come under the cap.

[peewon]

The more teams involved, the more likely the FIA would be to acknowledge and concede to a common struggle point (like inflation or energy cost). It wouldn't make sense to announce that 6 or 7 teams breached the cap.

RB would also have come under the cap had the rules been more clearer from the FIA from the start. The spend on parts for old cars for promotional purposes was initially not counted but later altered to count. This came very late in the day and RB was later caught out by not receiving the tax rebate they had anticipated. The difference was minimal despite the whingeing of rival TPs.

Tax rebates should never count anyway. Top line spend should be the only thing that matters, raise the cap if needed. Having local laws determine how much you spend is so backwards I can’t even begin to describe it.

That doesn't make any sense. Why should money you never ended up spending count towards your cap? What about discounts on services or materials?

[mzivtins]

The more teams involved, the more likely the FIA would be to acknowledge and concede to a common struggle point (like inflation or energy cost). It wouldn't make sense to announce that 6 or 7 teams breached the cap.

RB would also have come under the cap had the rules been more clearer from the FIA from the start. The spend on parts for old cars for promotional purposes was initially not counted but later altered to count. This came very late in the day and RB was later caught out by not receiving the tax rebate they had anticipated. The difference was minimal despite the whingeing of rival TPs.

Tax rebates should never count anyway. Top line spend should be the only thing that matters, raise the cap if needed. Having local laws determine how much you spend is so backwards I can’t even begin to describe it.

How else would you be able to define the costs of a company without doing this?
I think you have it the wrong way round in your head, if it was pre-tax then you would lose a large chunk of budget paying VAT to suppliers etc.

It is always done this way as it is the the only accurate way.

[krisfx]

The more teams involved, the more likely the FIA would be to acknowledge and concede to a common struggle point (like inflation or energy cost). It wouldn't make sense to announce that 6 or 7 teams breached the cap.

RB would also have come under the cap had the rules been more clearer from the FIA from the start. The spend on parts for old cars for promotional purposes was initially not counted but later altered to count. This came very late in the day and RB was later caught out by not receiving the tax rebate they had anticipated. The difference was minimal despite the whingeing of rival TPs.

Tax rebates should never count anyway. Top line spend should be the only thing that matters, raise the cap if needed. Having local laws determine how much you spend is so backwards I can’t even begin to describe it.

Local conditions and laws already impact spending.

Pension contributions, cost of living and taxes the employer pays for employees are also not exempt from the cap, this is almost always derived from the laws of the individual country.

For instance, the cost of labour in Switzerland vs other countries would mean Sauber's average inidividual employee cost and any supplier costs would be higher than other teams for instance, the same way material/energy costs in different countries impacts how much it costs to actually build components.

[Just_a_fan]

RB would also have come under the cap had the rules been more clearer from the FIA from the start. The spend on parts for old cars for promotional purposes was initially not counted but later altered to count. This came very late in the day and RB was later caught out by not receiving the tax rebate they had anticipated. The difference was minimal despite the whingeing of rival TPs.

If RB had done the dry run audits that the other teams did with the FIA, they'd have found these things out and avoided their mistake.

Hubris on the part of RBR is to blame, not the process which every other team was able to navigate successfully.

FIA changed a regulation in June in typical FIA fashion. RB copped the penalty and moved on. The point was that had the regulations been properly defined, they would have come under the cap.

But other teams run old cars for promotional purposes and didn't fall foul. They overspent because they effectively double counted against something they shouldn't have. That's on them.

Anyway, that's history and the teams appear (according to the FIA) to have figured it out and complied with everything.

[Stu]

Get back to 2022 budget cap breach discussion, please.
2021 had a whole thread to itself where it was discussed along ‘party lines’ ad-infinitum.