Red Bull suspend Cashgate negotiations with FIA

It is understood that Red Bull’s punishment was due to be announced this weekend, but the tragic death of their owner has seen the news delayed.

Red Bull and the FIA have been in negotiation over the team’s punishment for breaching the 2021 budget cap, however their agreement will not be announced for a few more days.

It is believed that the FIA initially suggested cutting a quarter of the team’s wind tunnel and CFD time next year, alongside a substantial fine, however Red Bull saw this as unacceptable and chose to reject the punishment, and enter negotiations.

Dietrich Mateschitz tragically passed away earlier this weekend at the age of 78, with the Milton Keynes based team dedicating their win at the Circuit of the Americas to their late owner.

Red Bull have now confirmed that due to Mateschitz’s passing, all conversations about the budget cap are suspended.

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“Due to the death of Mr Mateschitz, all talks with the FIA on the budget cap and further decisions are suspended until further notice,” announced the team to German media.

With Red Bull rejecting the initial offer from the FIA the team will now have to negotiate in front of a panel of adjudicators for a different punishment.

It looks highly unlikely that the team will be docked any championship points for last season, which could have seen Max Verstappen being stripped of his first title, with a sporting penalty such as a reduction in testing time and a hefty fine now being the most likely outcome.

Mercedes boss Toto Wolff has been very outspoken about Red Bull’s potential punishment, claiming that it should set a precedent, and that if the punishment is too weak then it will not deter teams from breaching the cap in the future.

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The Austrian even went as far as saying that should Red Bull only be fined, he would not hesitate to breach the cap at Mercedes, as the benefits of being back at the top of the timing screens would justify paying a fine.

The saga, which has been going on for a number of weeks now, looks set to finally reach it’s conclusion in the coming days, with the FIA and Red Bull choosing respect the mourning of Mateschitz before making any announcement to the public.

Negotiations between Red Bull and the FIA are expected to resume mid-week, with the delay not set to last more than a few days.