Full FIA report on Aston Martin F1 cost cap procedural breach and penalty

Here is the FIA’s report in full:

An Accepted Breach Agreement (“ABA”) dated 25 October 2022 has been entered into by the Cost Cap Administration and AMR GP Limited (“AMR”) pursuant to Article 6.28 of the FIA Formula 1 Financial Regulations (“Financial Regulations”). The Financial Regulations are issued by the FIA and form part of the terms and conditions of participation in the FIA Formula One World Championship.

The Cost Cap Administration recognised that: (a) notwithstanding the CCA’s determination of Procedural Breach, AMR’s Relevant Costs during the 2021 reporting period were below the 2021 Cost Cap; (b) AMR has acted cooperatively throughout the review process and has sought to provide additional information and evidence when requested in a timely manner; (c), that this is the first year of the full application of the Financial Regulations which are a very complex set of rules that competitors were required to adapt to; (d) that there is no accusation or evidence that AMR has sought at any time to act in bad faith, dishonesty or in a fraudulent manner; (e)nor has it wilfully concealed any information from the Cost Cap Administration and (f) that AMR did not gain or seek to gain any advantage from the inaccurate exclusions or adjustments of certain costs.

The Cost Cap Administration considered it appropriate, in these circumstances, to offer to AMR an ABA to resolve this matter on the terms set out below, given the limited nature of the breach in issue, and AMR’s willingness to accept the breach and to cooperate with the Cost Cap Administration. That offer was accepted by AMR.

The ABA concerns:

• A Procedural Breach committed by AMR pursuant to Article 8.2(e) of the Financial Regulations due to its failure to file accurate Full Year Reporting Documentation in respect of the 2021 Full Year Reporting Period because it inaccurately excluded and/or adjusted costs in the calculation of its Relevant Costs.

Summary of ABA terms and sanctions

In accordance with the findings of the Cost Cap Administration, AMR has acknowledged that the Reporting Documentation submitted by it included the following incorrectly excluded and/or adjusted costs:

1. Cost pursuant to Article 3.1(h)(i) of the Financial Regulations (concerning costs in respect of the new F1 Team headquarters);
2. Understatement of Relevant Costs in respect of the provision set forth by Article 4.1(b)(ii) (concerning R&D tax credit);
3. Costs pursuant to Article…