The 2021 world title was a delight for fans because of the thrill it offered. In a very dramatic fashion, the title was grabbed by Max Verstappen on the last lap of the Abu Dhabi GP. Mercedes was shocked; Red Bull was delighted. But no one would have expected this new twist in the tale.

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Overlapping into 2022, the saga continued in a new vein. There were rumors of a possible breach of the spending limits that were introduced as part of the financial regulations by the FIA in 2021. Rumors indicated that Red Bull had breached the cap materially, meaning a breach of more than 5% of the stipulated limit.

After a long inquisition and investigation into the matter, FIA recently came out with the decision. Red Bull did breach the limit, however only minorly. They breached the limit by $2.2 million and have in turn signed an Accepted Breach Agreement with the FIA, which lays out the penalties for the same. Toto Wolff believes that this breach has caused major damage to Red Bull, which will linger on for years.

He was asked if Mercedes would consider breaching the limit now that they know what the penalty would be for a minor breach. Wolff denied, “I think what you see is beyond a sporting penalty and financial fine, it’s also reputational damage.”

“In a world of transparency and good governance, that’s just not on anymore. Compliance wise whatever team you are, you’re responsible for representing a brand, your employees, your partners. That’s why for us it wouldn’t be a business case.”

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Opinions over whether the penalty was too low or too high will continue streaming in. But this sets a precedent for teams going forward.

How badly will these penalties hit Red Bull and their title defense?

As part of their ABA with the FIA, Red Bull has agreed to a $7 million penalty along with some other sporting penalties, which would affect their wind tunnel testing. They would also have to bear the costs incurred by the Cost Cap Administration.

In some corners, this penalty has been deemed as only a slap on the wrist but according to Christian Horner, “I hear people say it’s not a severe penalty, but 10 per cent less wind tunnel time and other aerodynamic tools is a draconian penalty. That can cost 0.25sec to 0.50sec (a lap). It will have an impact on our ability to perform on track next year.”

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While Horner might be overstating his case a little, the impact of the penalties could turn out to be huge. It could, however, turn out to be a blessing in disguise for fans if it levels the field a little bit and makes the title race more competitive. What do you think about it? Let us know in the comments!