The Red Bull budget cap breach in F1: From regulations to necessary changes.
Abstract Starting from an analysis of the F1 Financial Regulations and the recent regulatory breach done by F1 Red Bull team, this article has the aim to understand why the current system is not able to be really effective in formula one's financial monitoring and how it could be improved. Photo by José Pablo Domínguez on Unsplash The Budget cap and the F1 Financial Regulations The Budget cap is one of the most relevant additions to the new set of regulation created to establish a new era in Fomula One history. The budget cap and its procedures were introduced by FIA’s Financial Regulations from the 2021 F1 season. The aim of the Financial Regulations is to improve the financial sustainability of Formula One teams, meanwhile ensuring the long-term viability of the Championship and mitigating the gap in performance between competitors. This intricate regulation establishes a new board called “ Cost Cap Administration ” [1] ,