AUSTIN, Texas (Reuters) – Red Bull’s talks with Formula One’s governing body over breaching last year’s budget cap have been put on hold after the death of the team’s owner Dietrich Mateschitz, Red Bull said on Sunday.
The governing FIA announced on Oct. 10 that Red Bull had committed a ‘minor overspend’ of the $145-million cap in 2021.
Team boss Christian Horner told reporters at the U.S. Grand Prix in Austin on Saturday that an Accepted Breach Agreement (ABA) had been proposed and he hoped the situation could be resolved over the weekend.
Mateschitz’s death at the age of 78, announced later on Saturday, meant “all conversations with the FIA around cost cap and next steps are on hold until further notice”, a Red Bull team spokesman said.
“The deadline for agreement has been extended and we expect talks to pick back up in the middle of next week.”
Formula One is racing in Mexico City next weekend.
Details of the ABA have not been made public but paddock insiders expect it to include a heavy fine and a reduction in the team’s budget next year.
Some teams have called for a strict punishment to send a strong message.
The cap was introduced last year to help level the playing field and make racing more competitive.
(Reporting by Alan Baldwin in London, editing by Clare Fallon)
