F1 limits team budgets to rev up competition on grid

Formula One's ruling body, the FIA, yesterday laid out its plan for a dramatic rebirth of the sport under budget cost-capping.

At an extraordinary meeting of the World Motor Sport Council in Paris, the FIA president, Max Mosley, pushed through an optional budget cap of £40m to attract three new teams to join the existing 10 from 2010.

"Funding a team is increasingly seen as a discretionary spend for the majority of team owners and sponsors," the FIA said. "To ensure a healthy grid all are agreed costs need to be cut. The FIA believe unfettered technical competition is part of Formula One's DNA, and would like to see this flourish, but in an environment of strong, responsible and innovative management, not a spending race."

David Richards, the head of Prodrive and chairman of Aston Martin Racing, welcomed the new initiative. "The initial signs are very attractive and represent the basis for a real revolution in the sport," he said. "They hold the promise to return Formula One to its fundamental ethos, where success comes to those with the most ingenious engineering and best organisation, not simply those with the biggest budget."

The £40m will cover all team expenditure except: marketing and hospitality; remuneration for test or race drivers, including any young driver programmes; fines or penalties imposed by the FIA; engine costs (for 2010 only); any expenditure which the team can demonstrate has no influence on its performance in the championship; dividends (including any tax thereon) paid from profits relating to participation in the championship. A new costs commission will monitor and enforce the cost-cap financial regulations.

Bernie Ecclestone's Formula One Management will offer a $10m (£6.8m) sweetener in the form of participation fees and expenses to new teams. To be eligible for this, new teams must qualify as constructors and demonstrate that they have the necessary facilities, financial resources and technical competence to compete.

As a further sweetener, cost-capped teams will be allowed greater technical freedom to run movable front and rear wings; an engine not subject to a rev limit; and to conduct unlimited out-of-season track testing with no restrictions on the scale and speed of wind tunnel testing.

At the same time, the WMSC confirmed that refuelling will be banned in 2010 to save the costs of transporting refuelling equipment and oblige engine manufacturers to improve fuel economy.

Have you tried new the Independent Digital Edition apps?
Caption competition
Caption competition
  • Get to the point
Latest stories from i100
Daily Quiz
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

Career Services

Day In a Page

No postcode? No vote

Floating voters

How living on a houseboat meant I didn't officially 'exist'
Louis Theroux's affable Englishman routine begins to wear thin

By Reason of Insanity

Louis Theroux's affable Englishman routine begins to wear thin
Power dressing is back – but no shoulderpads!

Power dressing is back

But banish all thoughts of Eighties shoulderpads
Spanish stone-age cave paintings 'under threat' after being re-opened to the public

Spanish stone-age cave paintings in Altamira 'under threat'

Caves were re-opened to the public
'I was the bookies’ favourite to be first to leave the Cabinet'

Vince Cable interview

'I was the bookies’ favourite to be first to leave the Cabinet'
Election 2015: How many of the Government's coalition agreement promises have been kept?

Promises, promises

But how many coalition agreement pledges have been kept?
The Gaza fisherman who built his own reef - and was shot dead there by an Israeli gunboat

The death of a Gaza fisherman

He built his own reef, and was fatally shot there by an Israeli gunboat
Saudi Arabia's airstrikes in Yemen are fuelling the Gulf's fire

Saudi airstrikes are fuelling the Gulf's fire

Arab intervention in Yemen risks entrenching Sunni-Shia divide and handing a victory to Isis, says Patrick Cockburn
Zayn Malik's departure from One Direction shows the perils of fame in the age of social media

The only direction Zayn could go

We wince at the anguish of One Direction's fans, but Malik's departure shows the perils of fame in the age of social media
Young Magician of the Year 2015: Meet the schoolgirl from Newcastle who has her heart set on being the competition's first female winner

Spells like teen spirit

A 16-year-old from Newcastle has set her heart on being the first female to win Young Magician of the Year. Jonathan Owen meets her
Jonathan Anderson: If fashion is a cycle, this young man knows just how to ride it

If fashion is a cycle, this young man knows just how to ride it

British designer Jonathan Anderson is putting his stamp on venerable house Loewe
Number plates scheme could provide a licence to offend in the land of the free

Licence to offend in the land of the free

Cash-strapped states have hit on a way of making money out of drivers that may be in collision with the First Amendment, says Rupert Cornwell
From farm to fork: Meet the Cornish fishermen, vegetable-growers and butchers causing a stir in London's top restaurants

From farm to fork in Cornwall

One man is bringing together Cornwall's most accomplished growers, fishermen and butchers with London's best chefs to put the finest, freshest produce on the plates of some of the country’s best restaurants
Robert Parker interview: The world's top wine critic on tasting 10,000 bottles a year, absurd drinking notes and New World wannabes

Robert Parker interview

The world's top wine critic on tasting 10,000 bottles a year, absurd drinking notes and New World wannabes
Don't believe the stereotype - or should you?

Don't believe the stereotype - or should you?

We exaggerate regional traits and turn them into jokes - and those on the receiving end are in on it too, says DJ Taylor