The FIA has announced that its Cost Cap Administration has completed its review of the Reporting Documentation submitted by each Competitor that took part in the 2022 FIA Formula One World Championship. The review period covered the entire 2022 year, ending on December 31, 2022. Following this comprehensive review, the FIA Cost Cap Administration has issued certificates of compliance to all ten Competitors.
The review process was detailed and meticulous, involving an in-depth analysis of the documentation provided by the teams. In addition, there was a thorough check of any non-F1 activities carried out by the teams. This involved multiple on-site visits to team facilities and careful auditing procedures to ensure compliance with the Financial Regulations. The FIA Cost Cap Administration acknowledged the good faith and cooperation shown by all Competitors throughout the process.
The FIA emphasized the importance of the Financial Regulations in ensuring the long-term financial stability of the sport. The regulations will continue to be developed and refined based on the findings of each review process. This includes both the regulations themselves, which are written and approved under the FIA Formula 1 governance process, and the enforcement and policing of these regulations. The FIA acknowledged that significant investments have been made in this department for the benefit of the sport as a whole.
It is worth noting that the Financial Regulations were introduced in the FIA Formula One World Championship starting from the 2021 season. This step was taken after unanimous approval from all Competitors. The purpose of these regulations is to limit spending in the Championship, ensuring its long-term viability and promoting closer competition among the teams.
The process of auditing the submissions of the Competitors by the FIA Cost Cap Administration is complex and time-consuming. However, thanks to additional resource commitments made by the FIA, the review process for the 2022 season has been completed within a shorter timeframe than the previous year. This is in line with the timeline seen in other major sporting competitions.
The Cost Cap Administration is responsible for administering and monitoring compliance with the Financial Regulations. It also investigates instances of suspected non-compliance through auditing processes or by launching full investigations when necessary. The administration has various options when dealing with alleged breaches, including entering into a settlement known as an Accepted Breach Agreement (ABA) with the involved Competitor for procedural or minor overspend breaches. In the event of a major overspend breach, the case must be referred to the Cost Cap Adjudication Panel.
The Cost Cap Adjudication Panel is composed of a panel of judges elected by the FIA General Assembly according to the FIA Statutes. These judges are selected from candidates proposed by either the FIA Sport Member Associations or a group of at least five F1 Teams. Procedural breaches can result in financial and/or minor sporting penalties, while minor overspend breaches can lead to similar penalties. Only confirmed material overspend breaches will result in mandatory Constructors’ Championship points deductions and could result in additional penalties.
For a more detailed understanding of the Financial Regulations, the FIA has provided a link to the full document.
In conclusion, the FIA has successfully completed its review of the Reporting Documentation submitted by each Competitor for the 2022 FIA Formula One World Championship. The Cost Cap Administration has issued certificates of compliance to all ten Competitors, recognizing their cooperation throughout the process. The Financial Regulations continue to play a crucial role in ensuring the long-term financial stability of the sport, and the FIA will continue to invest in the development and enforcement of these regulations for the benefit of Formula One as a whole.