Red Bull cost cap scandal: What happens when an F1 team exceeds cost cap?

According to various reports, Red Bull are one of two teams reported to have overshot their cost cap last season.

Every team is supposed to work within the $148.6 million assigned to them. According to reports from AMuS and La Gazzetta Dello Sport, both Red Bull and Aston Martin are rumoured to have breached it. If that's the case, the next question that needs answering is what we are looking at in terms of punishment for the breach?

According to multiple reports, if the breach is within 5% of the budget cap, i.e. approximately $5-7 million, that would count as a minor breach. In that case, the only penalty could be a financial one and/or any minor sporting penalties. The report from AMuS says:

"There is no clearly defined catalog of penalties. The FIA did not want cross-border commuters to offset the damage against the benefit and deliberately exceed the limit as long as the penalty is bearable. According to the regulations, violations of up to five million dollars are considered a "minor rule violation". The perpetrator may get away with a fine."

In case the Red Bull transgression crosses the 5% threshold, it could lead to bigger and harsher penalties. The report says:

"Anyone who is over the five million must expect harsher penalties. Possibly a point deduction and a subsequent downgrading in the world championship. Or you can deduct the amount that was exceeded from the cost cap for the affected team the following year."

Ahead of the Singapore GP this weekend, Red Bull (545) are looking good to win the constructors title after narrowly falling short against McLaren last year.

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Red Bull and Aston Martin expected to have minor infringement

According to reports from both The Race and Gazzetta Dello Sport, Aston Martin and Red Bull transgressions are expected to fall under 'minor infringements', as they've exceeded the budget cap by less than 5%.

Hence, in the case of the cost cap infringement, expect only a financial penalty and/or any minor sporting penalties. The report says:

"Both transgressions are expected to be classified by the FIA as minor breaches, which means they exceeded the budget cap by up to 5% of its value. That means the breach could be up to around $7m, which is the equivalent of salary for dozens of members of staff and/or a significant amount of development work. The financial regulations only specify that a minor breach may incur a “financial penalty and/or any minor sporting penalties”."

FIA is expected to make the report public in a week or two, and we could see things getting spicy.