F1 News
First team penalised by FIA for violating new budget rules
- GPblog.com
Formula 1 teams have had to adhere to a budget cap since last year. This not only means that the teams are not allowed to spend too much money, but also that teams must be transparent when it comes to financial administration. For example, all teams have to hand over their annual reports to the FIA for inspection. Williams did not do this in time and have been penalised.
Williams violates financial regulations
All teams were required to submit their 2021 financial records to the FIA by March 31, 2022. Williams failed to meet the deadline, which the team informed the FIA before the deadline, and was informed by the Cost Cap Administration on April 12 that the team had committed a procedural violation, according to the FIA. Williams acknowledged that a procedural error had been committed and explained the steps it had taken to avoid that breach.
In a statement from the FIA, the following can be read: "After considering Williams' explanations and taking into account, in particular, that the procedural breach was voluntarily disclosed by Williams prior to the full year reporting deadline of 31 March 2022 and Williams fully cooperated to remedy the breach, the Cost Cap Administration considered it appropriate to offer Williams an ABA [Accepted Breach Agreement] to resolve the breach on the terms set out below. That offer was accepted by Williams."
Fine and deferment for Williams
Under the terms of the ABA, Williams has until May 31, 2022 at 7:00 p.m. to correct the procedural violation and submit the requested financial documents to the FIA. However, the team will be fined $25,000 and the costs incurred by the FIA's Cost Cap Administration in preparing for the ABA will be recovered from the team.