FIA confirms minor breach of Formula E financial regulations by two teams

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FIA confirms minor breach of Formula E financial regulations by two teams

The FIA has issued a statement confirming that Jaguar Racing Ltd. and Nissan Formula E Team were found to be in procedural and minor overspend breaches over the period 2022/23.

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What the breach was, and what it means

Nissan Formula E Team has been fined €300,000 for its less than 2% (€269,252) breach by the FIA, while Jaguar Racing Ltd. was penalised to the sum of €100,000 for a 0.6% (£73,849) overspend.

Both teams recognised an Accepted Breach Agreement (ABA) from the FIA and will also absorb the costs of the FIA's Cost Cap Administration in preparing the ABA.

In addition to the financial penalties, both teams will receive a minor sporting penalty in the form of a half-day suspension (three hours) taken during the first session of testing.


What the teams said

Nissan Formula E Team said: "Nissan Formula E team recognises to have unwittingly and unintentionally incurred in a minor procedural and overspend breach of the cost cap. The team has therefore signed an Accepted Breach of Agreement (ABA) as offered by the FIA Cost Cap Administration in order to resolve this matter.

"Following a very cooperative review process with the Cost Cap Administration and an exhaustive internal audit, Nissan Formula E team has determined that these minor breaches are exclusively related to the process of interpretation and adaption of the new financial regulations at a time when the team was also facing specific challenges linked to its change of ownership, full restructure, and relocation.

"Nissan Formula E Team has since put in place all the necessary precautions to avoid these kinds of miscalculations and oversights in the future."

Jaguar Racing Ltd. said: "Following consultation with the FIA, we believe that had we filed correctly we would have been fully compliant with teams’ cost cap and the minor overspend breach would not have occurred.

“Unfortunately, we understand a refiling is not allowable by the current regulations and therefore due to these unintended procedural errors we are in a very minor overspend position. At no time did we seek or gain a technical or sporting advantage, as can be seen and confirmed by the Cost Cap Administration’s findings and the nature of the ABA.

“We will continue to work closely with the FIA going forward on the development and application of the cost cap and in the best interests of Formula E – the pinnacle of electric racing.”

An FIA statement read: "The Cost Cap Administration recognised that the teams have acted cooperatively throughout the review process and have sought to provide additional information and evidence when requested in a timely manner, that this is the first year of the full application of the financial regulations and that there is no accusation or evidence of aggravating factors or that they have sought at any time to act in bad faith, dishonestly or in fraudulent manner, and nor has it wilfully concealed any information from the Cost Cap Administration."

A Formula E spokesperson said: “We understand the findings and recognise the diligence with which the FIA carried out the complex review process, in what is the first full year of the Financial Regulations being in place.

"Although two teams were found to have been in minor breach, the championship accepts these were absolutely not intentional and appreciates the exceptional way that these teams have and continue to operate.”

The full FIA statement, including links to the penalties, regulations, the cost cap and breaches in full, can be found here.