F1 | Williams fined for a procedural breach of the sport's financial rules
Williams missed the deadline to submit the paperwork required as a report for 2021's financial regulations and the FIA has reported the final agreement on the matter.
The FIA confirmed the Williams team faced the payment of $25,000 as a fine for not reporting their annual spending regarding the 2021 year on Formula 1. The deadline to present this report was due on March 31st 2022.
Being June 2022, the FIA and the British Team have released a public official statement explaining they reached an agreement for financial rules procedure breach.
“Williams admits that it has breached Article 5.1(b) of the Financial Regulations due to its failure to submit, as part of its Full Year Reporting Documentation (in respect of the Full Year Reporting Period ending on 31 December 2021), the complete Full Year Financial Reporting Documentation by the Full Year Reporting Deadline of 31 March 2022, and so has committed a Procedural Breach under Article 8.2(e) of the Financial Regulations. On this basis, it was agreed that:
→ Williams had to remediate the Procedural Breach by no later than 19:00 CET on 31 May 2022.
→ Williams had to pay a Financial Penalty of USD 25,000 to the FIA within 30 days of the date of the ABA.
→ Williams had to bear the costs incurred by the Cost Cap Administration in connection with the preparation of the ABA.”
The actual Cost Cap established for 2022’s regulation changes implies that teams' financial procedures must not exceed $141.2 million per year. However, since 2021 all teams are obliged to report their spending from January to April by the end of June, and their annual report is due in March of the following year.
In conclusion, FIA made clear that Williams’ full cooperation to fix the breach assured the team will not face any further sanctions.
"Non-compliance by Williams with any terms of the ABA will result in a further Procedural Breach under Articles 6.30 and 8.2(f) of the Financial Regulations and automatic referral to the Cost Cap Adjudication Panel.
"The Cost Cap Administration confirms that, as of the date hereof, Williams has within the specified deadline remediated the Procedural Breach, paid the Financial Penalty, and bore the costs incurred by the Cost Cap Administration in connection with the preparation of the ABA."
