why the fia cost certificates have still not been issued

What's up

The FIA's confirmation on the 2024 cost cap reports has been delayed. Normally, those certificates appear shortly after the summer break. This year, the usual announcement remained five to seven weeks away. That raises a lot of questions and speculation in the paddock.

Why there are delays

The delay could mean two things. Either the FIA is carrying out additional checks. Or investigations into possible violations are ongoing.

It is not uncommon for the FIA to revisit details. Sometimes questions follow about how teams have interpreted costs. In other cases, the FIA searches longer because things are unclear or multiple teams seem to be involved.

The FIA publicly reported that the assessment is not yet complete and that the outcome is expected soon. No statements will be made about individual teams.

How the audit process works

Teams must submit their expenses for the previous 12 months by 31 March each year. Those figures are examined by the FIA's Cost Cap Administration. If everything is correct, a team gets a compliance certificate. If there are doubts, an investigation follows.

In an investigation, two routes exist. Minor, procedural errors can be dealt with through a so-called Accepted Breach Agreement (ABA). Serious breaches go to the Cost Cap Adjudication Panel, a committee of 6 to 12 judges. Their hearings are closed and only the final decision is made public. That ruling can later be challenged at the FIA's International Court of Appeal.

What a team should do at an ABA

To accept an ABA, a team must acknowledge that it has broken the rules. It must accept the sanctions imposed. It pays any costs and releases the right to challenge the ABA.

Which penalties are possible

The severity of sanctions depends on the nature and extent of the offence. Below is an overview of possible measures:

• Procedural errors: usually only a fine.
• Late or no submission of documents: possible deduction of constructor points.
• Small overrun (<5%): boete en/of lichte sportieve sancties.
• Material excess (>5%): deduction of constructor points, fines, heavier sporting penalties or even exclusion.

Examples of minor sporting sanctions include a public reprimand, deduction of points, suspension for races, restrictions on testing or a reduction in a future cost cap.

Financial frameworks

The baseline cost cap last year stood at $135 million. Due to inflation and calendar adjustments, the effective cap came to around $165 million. Motor developments are subject to a separate cap of $95 million.

Precedent from 2022

Two teams were already fined in 2022. Red Bull was fined $7 million and restricted 10% on wind tunnel time. Their excess was just above the 5% limit in money terms. Aston Martin was fined $450,000 for procedural errors in accounting for certain costs, such as construction costs and contractual items. A team that submitted late then also received a small fine after voluntary notification.

What can we expect?

The long delay indicates that the situation is complex. That could mean that the FIA is investigating several files in depth. It may also mean that there is much debate about what exactly falls within the cost cap or not.

In the end, two outcomes are most likely: the FIA gives all teams the green light or one or more sanctions will follow, ranging from fines to sporting measures. The coming weeks should bring clarity.