Interesting article here in The Guardian - I'm not sure whether this should go on in here, or in a separate thread, but either way it is worth mentioning.
Now, during an interview with The Observer, as picked up on and re-reported by The Guardian, Horner suggested that FOTA may be considering bringing in additional restrictions on spending in other areas - in effect, a budget capping mechanism. Although he did not explicitly say that the additional restrictions, aimed at targeting spending on engine development, marketing and so on, would amount to a budget cap, his comments suggested that the measures would effectively be the same as a budget capping mechanism.
It seems that Red Bull's enthusiasm, publicly at least, for these measures is to increase transparency on the teams finances, and a way of countering accusations by unspecified smaller teams of overspending by bigger teams.
Basically, the way that the current Resource Restriction Agreement works is that any team which overspends is fined on a sliding scale, depending on how much they overspent, with the fines deducted from the current years permissible spending. The money from the fines are then redistributed to the other teams: Horner's accusation is that some smaller teams are deliberately spreading rumours of overspending by Red Bull in the hope that they will be fined, giving the smaller teams additional revenue from those fines.
To quote directly from Horner:
The teams currently self-police that they are working within the spending limitations and Horner said: "The other major problem Red Bull Racing had with the RRA was that [other teams] wanted to introduce a penalty which just encourages infighting. The little teams see an opportunity to make some income and you end up with a situation of whistle-blowing. You can see it at the moment, it is putting the teams against each other which is not what Fota was supposed to do."
http://www.guardian.co.uk/sport/2011/fe ... e-red-bullI wonder, though, if Red Bull's new enthusiasm for a budget cap is connected to the fact that it would include spending on engines, which is an area where it has accused other teams, especially Ferrari, of heavy spending to gain an advantage?
What would also be interesting is the greater financial transparency. Now, Ferrari is often said to have the biggest budget (the article I've linked to suggests that they had a budget of £248 million last year), but, on the other hand, all of Ferrari's efforts are housed within a single company.
By comparison, most of the teams have subsidiary outfits - for example, Renault had their Renault Sport F1 division, which worked on engine and drivetrain developments (Renault Sport F1 remained with Renault, though, when they sold their stake in the team to Genii Capital), Mercedes has Mercedes HPE (their engine and drivetrain development centre), whilst Force India and Mclaren have a co-owned subsidiary for sharing R&D costs. Red Bull themselves have Red Bull Technology, which houses their design team - an outfit created solely to get around the previous ban on customer cars, before the FIA re-wrote the rules to stop them after repeated complaints from other teams (complaints which had been going on since 2006 - Spyker were particularly vocal, I believe).
Now, the question is how much spending goes on in those subsidiary companies, and how can you separate the spending on Formula 1 related activities with other, non Formula 1 related activities?