F1: Red Bull Broke 2021 Cost Cap By giving staff free lunches (Update)

The Dutch newspaper De Telegraaf said: “Red Bull did not spend too much on the development of the car.

“Mistakes were made with regard to other matters, such as catering and absenteeism due to illness.”

Italy’s La Repubblica added: “Red Bull overspent, but only slightly.

“Only a fine is expected for the team of the new world champion Max Verstappen.”

Red Bull managed to exceed the 2021 F1 Cost cap.

According to the FIA, the team’s catering budget accounts for almost all the breach. Daily free lunches for the team’s 1,000+ staff members at the company’s Milton Keynes HQ. In addition to free lunches and championship celebration catering costs, the report found that costs associated with absent staff also contributed to the breach. That, combined with some other factors, has put the team over the line, says the FIA.

Red Bull, per the FIA’s report, committed two breaches of the 2021 cost caps, one Procedural Breach and one “Minor Financial Overspend,” amounting to less than 5% of the cost cap. Red Bull were $1m-$2m in excess of the cost cap, a report from Dutch newspaper Telegraaf says.

If one assume $10 per day for each of the 1,000 staff members, that amounts to $10,000 per day x 5 days per week x say, 50 weeks = $2.5 million.

No more free lunches in Milton Keynes going forward?

The FIA only released its findings, not punishments for Red Bull or Aston. Both teams will have to wait for that. However, Williams was fined $25,000 for a procedural breach. Red Bull insists that it did not violate cost caps, and its statement above suggests that RBR is considering appealing to the FIA.

Red Bull expect a fine as their punishment, the report concludes.