F1 news 2022, cost cap, FIA, regulations, championship, Christian Horner, Toto Wolff, Laurent Mekies, Jost Capito, Andreas Seidl, Max Verstappen

There are concerns that some teams are operating beyond the cost cap. Red Bull Racing is at the centre of the storm. The FIA will finalise the accounts for the 2021 season on Wednesday. What happens then will have a huge impact on the sport. The stakes are high between the top three teams. It will also test the FIA's new financial regulations.

The cost cap limits spending as an equalisation measure. It was set at US$145 million for the first season in 2021. The biggest teams were spending three times the cap prior to the pandemic. McLaren principal Andreas Seidl believes the cost limit is important. Williams boss Jost Capito believes Dorilton wouldn't have entered the sport if the limit wasn't in place. He believes it's important that it doesn't collapse right away again.. Williams family was forced to sell the team to US investment firm Dor Milton Capital or risk shuttering the company.

The FIA has introduced a cost cap for Formula 1 teams. The teams must lodge their accounts by March 2022. It's not a one-and-done process, as Mercedes boss Toto Wolff explains. The FIA's financial officers are constantly clarifying with the FIA about what is excluded from and included in the cap.

The FIA will announce on Wednesday if any of the teams is in breach of regulations. Red Bull Racing and Aston Martin are rumoured to be set to receive breach notices. If they are, they can either cop the punishment or take the matter to adjudication.

There are allegations about Red Bull Racing's development spending. Toto Wolff confirms that the team spends US$3.5 million a year on development. Last year the amount was worth US $7.25 million. Christian Horner was on the offensive all weekend defending his team. Wolf confirms the FIA is working on clarifications to the regulations. The regulations were made in March. There are many different constructions of companies and businesses. The FIA will learn from the process. It is an elephant for the regulators and for participants.

Max Verstappen won the drivers championship by eight points last year. Red Bull Racing beat Ferrari to second place by 262 points. The FIA can fine or punish teams for minor breaches of the rules. It can also dock championship points and throw them out of championship. If a points deduction is the chosen penalty, it must be applied to the year the breach occurred.

The FIA is going to impose harsh penalties on teams that overspent in last year's campaign. Ferrari racing director Laurent Mekies is looking forward to a transparent and severe approach. The financial regulations have a lot of power. Any gains made in 2021 could be extended to 2022 and 2023. The FIA needs to make sure the regulations are effective. Toto Wolff believes that every team that spends more has a performance advantage. He also believes the FIA need to ensure that the rules have teeth.

The FIA will decide on Wednesday whether to fine a team for breaking the cost cap. Red Bull Racing was previously spending more than three times the current cap and it could be punished with a fine. The team signed up to the regulations when entering the championship. If the team is punished, it will probably be limited to a cut in development allowances for future years. If it is not, the sport's future will be seriously affected.