2010: GBP40m budget cap & 13 teams

Formula One racing's governing body, the FIA, has revised its budget cap plans for 2010. Teams signing up for the optional cap must limit their spending to £40 million per year in exchange for greater technical freedom. This figure will not include driver salaries or, for 2010 only, engine costs.

Thirteen teams will be accepted for next year's championship and all must apply by May 29, 2009, stating whether they wish to compete under the budget cap or not.

The full statement from the FIA:
2010 FIA Formula One World Championship

Applications to compete in the 2010 FIA Formula One World Championship are to be submitted to the FIA during the period 22-29 May 2009. Teams must state in their application whether they wish to compete under cost-cap regulations.

The maximum number of cars permitted to enter the Championship has been increased to 26, two being entered by each competitor.

The FIA will publish the list of cars and drivers accepted on 12 June 2009, having first notified unsuccessful applicants.

Cost Cap Regulations

From 2010, all teams will have the option to compete with cars built and operated within a stringent cost cap.

The cost cap for 2010 will be £40m per annum*. This figure 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.
* For the purposes of these Regulations, the financial year is 1 January to 31 December.

A new Costs Commission is being set up to monitor and enforce these cost-cap financial regulations. The Costs Commission will consist of a Chairman and two other Commissioners, appointed by the WMSC for terms of three years.

One Commissioner should be a finance expert and the other should have high level experience in motor sport. The Chairman should have appropriate experience and standing in motor sport or sports governance. All members of the Costs Commission shall be independent of all teams.

In addition to the payments which it already makes to the top ten teams in the Championship, Formula One Management, the commercial rights holder, has agreed to offer participation fees and expenses to the new teams. This includes an annual payment of US$10 million to each team plus free transportation of two chassis and freight up to 10,000 kg in weight (not including the two chassis) as well as 20 air tickets (economy cIass) for each round trip for events held outside Europe.

To be eligible for this, each new team must qualify as a "Constructor" and demonstrate that it has the necessary facilities, financial resources and technical competence to compete effectively in Formula One.

To enable these cars to compete with those from teams which are not subject to cost constraints, the cost-capped cars will be allowed greater technical freedom.

The principal technical freedoms allowed are:

1. Movable wings, front and rear.
2. An engine which is not subject to a rev limit.

The teams will also be allowed unlimited out-of-season track testing with no restrictions on the scale and speed of wind tunnel testing.

Changes applicable to all teams

It was confirmed that from 2010, refuelling during a race will be forbidden in order to save the costs of transporting refuelling equipment and increase the incentive for engine builders to improve fuel economy (to save weight).

It was also confirmed that tyre blankets will be banned and that the ban on other tyre-heating devices will be maintained.

Full details plus information on further amendments to the 2010 Sporting and Technical Regulations will be available shortly on www.fia.com.

By exception, if supported by the Safety Commission, the FIA WMSC may approve the issue of the Formula One Super Licence to persons judged by the Council to have met the intent of the qualification process.

SOURCE: Official F1 Website

An interesting read, though one I'm sure will throw up a lot of loopholes teams may exploit.

Any expenditure which the team can demonstrate has no influence on its performance in the ChampionshipF1 Announcement

2. An engine which is not subject to a rev limit.F1 Announcement

As for unlimited testing - I don't know how much use this will be considering their limited budget. Testing costs money, and if that is part of the 40m cap, then while they may technically be allowed unlimited testing, it will clearly be restricted by the budget.

The confirmation, or atleast allowance, for 26 cars on the grid next year can only be a good thing for the sport.

FRANK WILLIAMS URGES RIVALS TO ACCEPT BUDGET CAP

Frank Williams has said he would like to see all teams competing under a budget cap next season, following the FIA's announcement on the issue on Thursday. The FIA has given teams the option of running to a £40 million budget in 2010 in exchange for greater technical freedom.

Williams, who would prefer the cap to be compulsory, is encouraging all his rivals to opt for the cost-restricted route, thus avoiding the scenario of capped and non-capped teams running to slightly different technical regulations.

"We would like to see all the teams operating to one set of regulations and under a budget cap in 2010 and that is the position we will be advocating within (Formula One Teams Association) FOTA when we meet next week," said Williams.

"We understand that this will represent a serious challenge for some of the teams but we expect that FOTA will work together to find a unified and constructive way to take the FIA's initiative forward."

Williams has always been an advocate of restricting costs, and while he admitted that the teams' combined efforts to cut spending have been productive, he also believes the need for a budget cap is clearer than ever.

"Williams has supported the introduction of a budget cap since the idea was first put forward early in 2008," he added. "Since then FOTA has made tremendous steps forward on costs but the rationale for a budget cap has also grown even stronger."

SOURCE: Official F1 Website

Hm.... Interesting what the season will be then in 2010...

I can see this working, the fuel thing would be an issue maybe, on the one hand its good as it improves efficency (cars wont want lots of fuel on otherwise it will slow them down compared to others) and that can be transfered to road cars. However, would you want 70 laps of fuel in your car when driving around at over 100MHP? I certainly would not so I am not sure how this would work. That said it would mean less focus on pit stops.

In all I support this idea of a budget cap and its a good idea that teams who dont sign up are restricted as whats the point of all the money if their car wont really get any viable improvements?

Good on the FIA for trying to do something about the competition and reign in the redicolous ammounts of money being spent.

Just one question though, do drivers wages get counted in this or not?

Just one question though, do drivers wages get counted in this or not?

Garfield360UK

No, there are a couple of things excluded from the budget cap which include drivers salaries along with
- 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."

So with THE budget last week here in the U.K. and the W.M.S.C. new budget for f1 this week are budgets are new in thing. If it is i might jump on the band wagon and post my budget for next week, although i am undecided as to weather i agree not to spend over £40 on groceries and be allowed the Aldi's finest range, or be allowed to spend what i like and only but Aldi's own.

Won't removing refueling make for less interesting races?

It means the final session of qualifying, depending on the rules, all cars will either be running empty, or full, so any pace we see in qualifying is what they will have at the start of the race. There won't be any "pit stop strategy" apart from tyre wear, which will mean all cars pitting around the same time unless the weather changes.

I thought it was more fun to watch when cars are on different strategies, some stay out long, some short stint, some 1 stop, others 2 stop.

Won't removing refueling make for less interesting races?

It means the final session of qualifying, depending on the rules, all cars will either be running empty, or full, so any pace we see in qualifying is what they will have at the start of the race. There won't be any "pit stop strategy" apart from tyre wear, which will mean all cars pitting around the same time unless the weather changes.

I thought it was more fun to watch when cars are on different strategies, some stay out long, some short stint, some 1 stop, others 2 stop.

Avenger1324

True although I would say it stops this "oh look Driver X wins by overtaking during a pit stop", they will have to do it more on track now.

Just look at the teams in the late 80s and early 90s, Their budget cap was on about the same level as £40m, Now... Why is it that people can't see the sheer greatness of that?

Ban refuelling, isn't that what they did in the 80s and early 90s? 1994 onwards refuelling was allowed again, and it worked fine, But arrogant designers and more spending meant that cars were aerodynamically faster, but not much mechanical grip, engines were being developed tenfold, In 1996, Engine revs were around 15-16,000 RPM, Now, these engies COULD rev around 22,000,

Its stupid

Bring back the 80s and 90s of F1, Do whatever it takes, isn't the overtaking working group supposed to be working on ideas to make f1 more great to watch?

Here's a suggestion for them, Bring back the early 90s rules. Simple as that.