.:: The FOTA/FIA 2010 War - Todt new FIA President ::.

N.TECHNOLOGY BAFFLED BY FIA'S F1 SNUB

Italian racing outfit N.Technology says it does not understand why its application to race in Formula 1 was rejected by the FIA - after claiming that it has been a 'victim' of the row between the governing body and the current teams.

The FIA announced on Friday that it had chosen Team US F1, Campos Grand Prix and Manor Grand Prix as the three new competitors who are guaranteed a slot on the 2010 grid.

However, talks are progressing with at least three other outfits about the possibility of them joining the grid too, should any of the current teams choose not to lift the conditions attached to their entries by this Friday's deadline.

N.Technology is extremely disappointed about missing out on the chance to graduate to F1, and its leading figures Mauro Sipsz and Angelo Codignoni are angry about what has happened.

Speaking to Italian newspaper Corriere della Sera, Sipsz claimed: "The applications have been used by the Federation as pawns to move in the fight against the teams."

Sipsz and Codignoni reveal that they were informed by the FIA about having missed deadlines for submitting financial and technical details of their teams - even though they are adamant such information was sent in on time.

They also do not understand why teams like Scuderia Toro Rosso and Red Bull Racing were allowed provisional entries, even though they did not submit information about their engine partners for 2010 on their entry list.

"Toro Rosso and Red Bull are included despite missing the compulsory indication of the engine, and it doesn't say who will race under the budget cap. We are victims of their war," the pair were quoted as saying.

AUTOSPORT understands, however, that the team is on the shortlist of reserve teams in case any of the current squads fails to enter.

The FIA issued documents after publishing the entry list on Friday detailing the process by which they selected the new teams for 2010.

"We have been provided with accounts, contracts, multi-year business plans and other supporting material," said the FIA statement. "On the technical side we have asked for a thorough description of their capability, key staff, project plans, capital assets (present and planned for), organisational charts, and so on.

"Where there are key sub-contractors required we have asked to see contracts and letters of intent. This extends to the sponsorship side, where plans and any descriptions of existing relationships) are required. In all these aspects we have requested evidence that substantiates any claim in the teams' plans.

"In the background to these evaluations, where key individuals were identified on the funding side, our forensic accountancy advisors have run reputational checks, alongside the checking of factual data supplied.

"Once we had formed an opinion of the serious contenders we asked them to come to London to be questioned face to face by the due diligence team. Then a short summary report on the top five was sent to the FIA President."

SOURCE: Autosport

FIA: FOTA MEMBERS PREVENTING DEAL

The FIA has blamed factions within the Formula One Teams' Association (FOTA) for the failure to find a settlement in the row over the future of the sport - after revealing on Monday that it believed it had an agreement in place last week.

AUTOSPORT understands that Ross Brawn is meeting the FIA today to discuss the situation and finalise what was agreed in last week's meeting.

In a statement issued on Monday morning, the FIA said that at a get-together with four members of FOTA last week a deal was reached for a way forward - but this subsequently failed to reach fruition.

"During the meeting FOTA acknowledged that the FIA wanted to encourage the introduction of new teams in the championship to maintain its vitality and economic viability in the long term," said the FIA.

"Agreement was reached on technical regulations for 2010 which offered assistance for new teams from the currently competing teams in several key areas.

"It was also agreed that the objectives of FOTA and the FIA on cost reduction were now very close and that financial experts from both sides should meet at the earliest opportunity to finalise the details.

"It was proposed by the FIA that any perceived governance and stability issues could best be eliminated by extending the 1998 Concorde Agreement until 2014 thus avoiding lengthy negotiations for a new agreement. This was well received by those present who undertook to report the suggestion to the other FOTA members."

The FIA has blamed members of FOTA for failing to act on this agreement - and claims that some are determined to see talks fail even though this will hurt F1.

"The FIA believed it had participated in a very constructive meeting with a large measure of agreement. The FIA was therefore astonished to learn that certain FOTA members not present at the meeting have falsely claimed that nothing was agreed and that the meeting had been a waste of time.

"There is clearly an element in FOTA which is determined to prevent any agreement being reached regardless of the damage this may cause to the sport."

SOURCE: Autosport

BRAWN: FORMULA ONE MUST LEARN FROM ROW

Ross Brawn believes Formula 1 teams and the FIA should take on board lessons from the row currently engulfing the sport - as he remains hopeful a solution can be found before Friday in the dispute about future cost cuts.

Speaking ahead of a meeting with the FIA on Monday to try and finalise agreements reached in a meeting last week, Brawn said that he hoped both parties could sort out their difference and head into a situation of better relations in the future.

FOTA teams have been given until June 19 to drop conditions attached to their entries.

"All of us - and I mean this collectively - have got ourselves into a situation we need to learn from," Brawn was quoted as saying by the Press Association.

"What we want to get back and put in place again is an agreement between the teams and the FIA on governance for the future, and how we can avoid these situations ever occurring again. I think there are still opportunities this week to resolve the issues, and if they are, then we will be happy to enter."

Although Brawn's future as a team is dependent on it carrying on racing next year, he has said that he is not wavering from his support of FOTA's stance against the FIA's planned 2010 regulations.

"FOTA have been supportive of Brawn GP, and the reason we are in Formula 1 is because of the support we received, particularly from McLaren and Mercedes, and offers of help from Ferrari," he said.

"So we want to support the group in trying to find a solution. We, as small independents, balance up the group with the manufacturers and they want to support the small independents.

"So we've stayed together as a group, and we can present a balanced approach on what needs to be done. It's not a manufacturers' association, it's the Formula One Teams' Association. That's why we are staying with FOTA.

"We believe in the principals of FOTA, and that as part of FOTA we can be influential in finding the right solutions."

And proof about his optimism for the future is that work has already begun on the team's 2010 car.

"I'm completely confident (we will be in F1 next season), and you have to plan on that," he claimed Brawn. "There's nothing else to plan for. We cannot allow this row to be a distraction to our engineering and racing plans.

"I'm not supporting a breakaway championship, but if there was one, then it would be one with cars similar to what we are working on now, which will be without re-fuelling."

SOURCE: Autosport

FIA "SURPRISED" BY ACEA'S CALL

The FIA has expressed its 'surprise' at last week's statement issued by the European car manufacturers' association ACEA claiming that Formula 1 needs a change of governance.

Following a meeting of the ACEA last week, a statement was issued claiming that the organisation was unhappy about the state of F1 - and that the way the sport was run now could not continue.

That statement has elicited a response from the FIA, which issued a statement on Monday saying it did not understand why the car makers were against plans to reduce costs in F1.

"The FIA is surprised that the European car manufacturers' association ACEA should have rejected the FIA's endeavours to reduce costs in Formula 1," said the statement. "By contrast, the FIA strongly endorses ACEA's call for urgent measures to return the automotive sector to health.

"According to ACEA, 'The European passenger car and commercial vehicle manufacturers are hit extremely hard by the financial crisis and subsequent economic downturn...Vehicle sales have dropped sharply and all automotive manufacturers and suppliers have scaled back production as a consequence.' ACEA describes the crisis facing its members as 'devastating'.

"Accordingly, the FIA's objective is to enable manufacturers in Formula 1 to participate as economically as possible, while maintaining the sporting, technical and marketing benefits that the sport offers.

"By reducing their costs of competition in Formula 1, ACEA's members will be able to apply the much-needed savings to their core business, to finance payroll, working capital, capital investments, marketing programmes and dealer support. This will also reduce the industry's need to seek funding from taxpayers or shareholders.

"The potential savings are not immaterial: reducing the costs of the five manufacturers from the €400 million to €500 million recently reported by Ferrari to even a level of €200 million would release €1 billion to €1.5 billion a year back into the core businesses. Although a team like Ferrari could still spend as much as €200 million despite the FIA's cost reduction programme, others will be able to compete successfully for as little as one third of this figure."

The FIA added that it would be happy to meet representatives of ACEA to discuss the situation.

It also pointed out that German car manufacturer Porsche has also moved to distance itself from the ACEA's stance about F1 - prompting speculation that the German car maker could be looking at an involvement in grand prix racing under planned cost cap regulations.

"The FIA understands that Porsche did not support ACEA's Formula One resolution and has instructed the ACEA secretariat to make this clear in response to any press enquiries," added the FIA statement.

SOURCE: Autosport

FOTA: NO COMMENT ON FIA STATEMENT

The Formula One Teams' Association (FOTA) has no interest in getting dragged into a war of words with the FIA following criticisms aimed its way by the governing body on Monday.

The FIA issued a statement on Monday morning accusing factions within FOTA of scuppering a deal that would end the current row over future cost cut proposals.

"There is clearly an element in FOTA which is determined to prevent any agreement being reached regardless of the damage this may cause to the sport," said the FIA.

With the FIA having promised to publish details of its discussion with FOTA to support its stance, and the teams' organisation also vowing to outline why it believes the FIA's future rules are 'bad' for the sport, public tensions between the two bodies appear to have moved up a gear.

However, a FOTA spokesman made it clear that there was no desire from the body to make an immediate response to the FIA's latest claim

"FOTA, whilst reserving its position on the specific issues, does not intend to comment the FIA press release issued on the 15th of June and to be involved in a prolonged series of polemical statements that generate confusion and does not help create a positive environment for the ongoing contacts," he said.

FOTA member Ross Brawn is meeting with the FIA today to try and work on edging closer a solution to the controversy, with teams only having until Friday to drop the conditions attached to their entries.

SOURCE: Autosport

'Teams upset with FIA's Donnelly'

FOTA have reportedly written to the FIA, complaining about the behaviour of the chief steward and FIA representative Alan Donnelly.

According to the Italian newspaper Corriere della Sera, the eight FOTA teams sent a letter to the FIA on Saturday to complain about Donnelly's behaviour during the Turkish GP weekend.

The teams allege that Donnelly, whose role is to impartially convene and oversee the stewards, spent the better part of the weekend telling them to leave FOTA and sign up unconditionally for next year's Championship.

The FOTA teams, however, were not impressed, complaining to the FIA.

As yet neither the organisation nor Max Mosley have commented on the matter.

Source: planet F1

Teams attack chief F1 steward's impartiality

There is a story in the Italian newspaper Corriere della Sera today about a letter sent by the FOTA teams yesterday (Saturday 13th June) to the FIA complaining about the behaviour of the FIA's Alan Donnelly at the recent Turkish Grand Prix.

The letter alleges that Donnelly was going around from team to team telling them to abandon the FOTA stance and sign up for 2010. It amounted to behaviour which the teams considered not appropriate for a man whose role at the races is to convene and oversee the stewards and to take a totally impartial view of problems arising on the track.

The teams have requested Mosley's comment on the matter.

The anti-FIA stuff continues in another story, concerning the way the entry of Italian outfit N Technology was handled by the FIA representatives responsible for assessing the new teams. The N Technology people allege that their submission was not properly processed, documents were mislaid and so on.

Apparently the FIA had no comment on the story.

Source James Allen on F1.com

(Thought i would post them as one to save space)

FIA: £40 MILLION BUDGET CAP GOING AHEAD

The FIA says that its plans for a £40 million budget cap will now go ahead unchanged, after the latest talks between the governing body and the Formula One Teams' Association (FOTA) to try and find a compromise ended without a deal.

Leading financial representatives from both the FIA and FOTA met in London on Monday to try and reach a settlement on next year's rules that would be acceptable to both parties.

There had been some hope that new rules could be put in place after preliminary agreement was reached between FIA president Max Mosley and several representatives of FOTA in a meeting last week.

However, the FIA has been left disappointed that this week's meeting achieved nothing, after FOTA's representatives said they could not discuss the rules, and the teams' proposals were rejected as being ineffective.

A statement issued by the FIA on Tuesday said: "As agreed at the meeting of 11 June, FIA financial experts met yesterday with financial experts from FOTA.

"Unfortunately, the FOTA representatives announced that they had no mandate to discuss the FIA's 2010 financial regulations. Indeed, they were not prepared to discuss regulation at all.

"As a result, the meeting could not achieve its purpose of comparing the FIA's rules with the FOTA proposals with a view to finding a common position.

"In default of a proper dialogue, the FOTA financial proposals were discussed but it became clear that these would not be capable of limiting the expenditure of a team which had the resources to outspend its competitors. Another financial arms race would then be inevitable.

"The FIA Financial Regulations therefore remain as published."

The FIA has become increasingly frustrated with the failure to find a solution to the row, and on Monday it accused factions with FOTA of deliberately trying to scupper a deal.

F1's current teams have been given until Friday to drop the conditions attached to their entries, or risk being left off the grid for 2010.

With part of their conditions being that the 2010 regulations are scrapped, the FIA's latest stance makes it increasingly unlikely that the matter can be resolved before the deadline.

SOURCE: Autosport

FIA REJECTS CRITICISM AIMED AT DONNELLY

The FIA has totally rejected suggestions by the Formula One Teams' Association (FOTA) that stewards chairman Alan Donnelly has not been acting totally impartially.

FOTA wrote to FIA president Max Mosley a few days ago complaining about the behaviour of Donnelly at the Turkish Grand Prix - where it claimed he had been 'misrepresenting' the position of the teams in a bid to split FOTA.

In the letter, a copy of which has been seen by AUTOSPORT, FOTA asked Mosley to act about Donnelly's behaviour.

"We would like to bring your attention to concerns that FOTA have regarding the conflict of interest of the role of the FIA Permanent Chairman of the Stewards who is also your representative in your absence during grand prix weekends," wrote the letter, signed by the eight FOTA members.

"It was apparent during the Turkish Grand Prix that several discussions were held between the aforementioned person and several Formula 1 team representatives with a clear intention to create division between the FOTA teams by misrepresenting the positions of these teams.

"The situation raises serious doubts on the autonomy of the judicial functions from the executive functions of the FIA, that needs to be separated for a proper governance of the Federation.

"In the FIA's role as regulator, it is imperative that the Chairman of the Stewards remains totally impartial and we therefore respectfully request that these roles are separated."

The FIA is unmoved, however, by FOTA's claims - and dismisses the allegations made against Donnelly.

An FIA spokesman told AUTOSPORT: "The FIA utterly rejects the suggestion made by FOTA in their recent correspondence."

Although the current row between FOTA and the FIA is dominated by the £40 million budget cap, the issue of governance remains a major issue for the teams.

SOURCE: Autosport

WEBBER: BREAKAWAY SERIES "APPEALING"

A breakaway Formula 1 championship would hold no fears for drivers as it would still be the most 'prestigious' championship in the world, claims Red Bull Racing's Mark Webber.

With F1 edging closer to the possibility of a split after talks between the FIA and FOTA to find a solution to the row over costs stalled on Monday, fears about a breakaway championship are increasing.

Writing in his BBC column, Webber said he was saddened that the political situation was going to overshadow this weekend's British GP - but said that he fully supported the stance adopted by FOTA.

"It's a great shame that, for the second year in a row, we're not even going to able to go to Silverstone and concentrate on a great venue and a great race," wrote Webber.

"Friday is the day of the latest deadline in the political row that's going on in Formula 1 at the moment, and the papers are going to be full of all that nonsense, when it should be about [Jenson] Button and the drivers competing in the British GP.

"It's disappointing that it has ended up this way, with the teams in a stand-off with the FIA, the governing body, over its plans to change the rules next year and introduce a £40m budget cap

"Collectively everyone has played a role in trying to help and protect the sport and you just see all that effort down the years being devalued or diluted through some pretty radical ideas."

"It's good to have some stability, to be able to predict what's going to happen, not have different things going on every six months."

He added: "All the drivers share the same view. We want to drive for the best teams and race against the best drivers. If it's not the FIA Formula 1 world championship, so be it. It'll still be the most prestigious championship.

"Ferrari are crucial. Everyone wants to beat them and McLaren. They're awesome teams and big set-ups who've taken years to get into that situation, they are respected and we want to beat these guys.

"It's the first time ever pretty much all the teams have the same view. For the sake of the sport, the main constructors and people who have the real vision believe they need to take a stand.

"It doesn't have to be this way but it's been pretty predictable. There have been lots of little ding-dongs going on over the last few years."

SOURCE: Autosport

The longer they wait to announce a breakaway, the more risk they take that more current teams will sign up to F1. My position is this; either we get teams like Ferrari, McLaren, BMW, Brawn and Renault into F1, or we get them into a newly created series. I don't want to watch 2 championships next season, which funnily enough is actually worse than the originally proposed 2-tier F1 championship. If F1 has just Force India, Williams and some new teams, I won't be watching, I'll be watching the series which exists for the right reasons, is governed properly, and has more established teams. To me, this is like the foundation of the Premier League in England; it will revolutionise the sport for the good.

It's not ideal, I know, losing the F1 name after 60 years, but as long as we have the blood of F1, which is about the fastest, most prestigious cars in the world, racing around the world, and promoting technical innovation, then we shouldn't worry. The FIA have crossed the line for the last time as far as I'm concerned. This is also what Mark Webber was saying.

MASSA: NEW SERIES MAY BE THE BEST CHOICE

Felipe Massa believes that maybe now is the time to start a breakaway championship, since there appears to be unity among teams about plans for the future.

The eight members of the Formula One Teams' Association (FOTA) have been given until Friday to drop the conditions attached to their 2010 entries or risk being left off the grid entirely.

And with talks between the FIA and FOTA about finding a solution appearing to have collapsed, it is looking increasingly unlikely that a deal will be reached in the next few days.

Massa has admitted that the situation is now of growing concern to him, as it will affect his future, but suggests that the time may well be ripe for teams to go off and do their own thing.

"The situation looks bad at the moment, but if agreement can be reached then it can have a healthy future," Massa told Ferrari's official website.

"If not, then we need to look seriously at what is the best option: as the teams appear to be united, then maybe it is time to look at doing something different that could be better for the sport."

Massa says that everyone in F1 is worried about what is going on, as the off-track politics begin to cast a cloud over what is happening on-track.

"Whatever happens on the race track this weekend, the current political situation in the sport is bound to be making the headlines again," he said.

"When I am driving the car, I never think about it and simply concentrate on my job of driving as quickly as possible, but outside the cockpit, I think about these problems, as they do affect me, as the relate to my future and the future of Formula 1.

"We are all very concerned about the situation and I follow the developments closely, as it affects my professional life, even if I can have no real influence over how the situation evolves: that's down to the people who govern the sport and those in charge of the teams.

"We need our sport to be in better shape, because over the past few months there have been some very stupid fights. Everyone needs to work hard to make the sport what it should be for the fans, the teams, the sponsors and the drivers. We don't need this fighting."

SOURCE: Autosport

It's not ideal, I know, losing the F1 name after 60 years, but as long as we have the blood of F1, which is about the fastest, most prestigious cars in the world, racing around the world, and promoting technical innovation, then we shouldn't worry. The FIA have crossed the line for the last time as far as I'm concerned. This is also what Mark Webber was saying. cjek

I agree. I mean, there's been way too much change in the past few years, which for us more avid followers may not be so bad, but when you're trying to attract the new viewers, consistent changes will only cause major headaches. The only change I feel the FIA have done right over the past few years is make qualifying as it is now. Personally, this is my favourite version of qualifying.

FOTA's breakaway championship - should it occur - can take advantage of major situations Ecclestone and the FIA have messed up. For one, without the stupid charges Ecclestone forces onto circuits, we could easily have back some great circuits:

- Circuit de Gilles Villeneuve
- Silverstone
- Indianapolis
- Imola
- Jerez
- Valencia (race circuit)

And two of those (Canada and USA) would really assist for the manufacturers - by not charging so much for race circuits to host a GP, the sport could attempt to break into the North American region successfully - and given the American's love for Lewis Hamilton when F1 last went in 2007, it could be a quick draw for FOTA's championship. We could also lose the more "boring" circuits, such as the Hungaroring, and instead gain some better circuits as a result.

The only downside I see (which really just affects us Brits) is that, should it occur, the likely scenario is ITV will snap up the rights for the series whilst the BBC keeps F1. Whilst, yes, it means that it will be on regular TV, it means we will get stuck with James Allen, Steve Ryder and adverts - exactly what we wanted rid of when F1 moved to BBC.

At the end of the day, the FIA have shot themselves in the foot. In today's world, you need to feed both the audience and the participants to keep them happy. You only feed one, and the other gets angry. The FIA have done well to take advantage of the Hamilton factor to boost the TV figures (In the UK alone, Hamilton's title win in Brazil was the most viewed show in 5 years for ITV if I've got that right), but in the process to try and appease fans even more (by making new teams successful instantly - could be seen as Hamilton'ing in a sense of teams?) they've forgotten current teams need to be able to successfully compete and promote themselves within the automotive market. By working with FOTA, they've could've made a brilliant team to make F1 successful and appease to the fans. Instead, we're going to be split into two by the looks of things.

I'd like to see another Racky's Rant on the situation, now we've got a load more information :)

FIA: FOTA TRYING TO CONTROL F1 RULES

The FIA has told the Formula One Teams' Association (FOTA) that it finds its attempts to take over the regulations of F1 and get control of commercial rights as unacceptable, as it explained why it will not back down on a budget cap.

With tensions mounting between the governing body and FOTA over cost-cut control and future governance of the sport, the FIA issued a lengthy press statement on Tuesday explaining its stance.

It claims that the efforts made by itself and Formula One Management in making the sport one of the most popular in the world will not be wasted by what the teams want.

"The FIA and FOM have together spent decades building the FIA Formula One World Championship into the most watched motor sport competition in history," it said.

"In light of the success of the FIA's Championship, FOTA - made up of participants who come and go as it suits them - has set itself two clear objectives: to take over the regulation of Formula 1 from the FIA and to expropriate the commercial rights for itself. These are not objectives which the FIA can accept."

The FIA stated that its hardline stance on the budget cap has been fuelled by the lessons learned from trying to cut engine costs, and the fact the manufacturers had refused to commit themselves for the long term.

"Mr. [Luca] di Montezemolo promised to secure the necessary guarantees from the main car manufacturing companies (not to be confused with guarantees from the teams).

"He continued to promise this all through the winter, most recently at a meeting he had with the FIA's President on 23 February 2009. Not one such letter has been forthcoming - not even from Mr. di Montezemolo's own company FIAT.

"At the same time FOTA and Mr. di Montezemolo rebuffed all attempts to hold meetings to discuss cost reduction. There was no need, the FIA were told. FOTA's own measures were adequate and they would make up for the shortage of cars by each running a third car. By March it was clear that FOTA had no intention of facilitating the entry of new teams, indeed were opposed."

Speaking about why a budget cap was seen as the best way forward, the FIA explained: "If we wish to see innovative technology in Formula 1, the only way is to limit expenditure and allow the engineers freedom to do their best within a fixed budget.

"This is exactly what happens in the real world and it is the only way forward for Formula 1. Without technical innovation, Formula 1 will wither and die. Without real cost constraints, Formula 1 will lose its teams. This is why the FIA is insisting on cost restraint as part of the Formula One regulations."

SOURCE: Autosport

FULL STATEMENT FROM FIA

What is this dispute really all about? Is it about an attempt by some teams to take over the commercial rights to Formula One? Or to take the regulatory function away from the FIA? Or even just a clash of personalities? It has elements of all of these, but the real issue is philosophical; it goes to the fundamentals of Formula One. It is about technical freedom. It is recognition by the FIA and several teams that you can have technical freedom - the freedom to innovate - or you can have freedom to spend without limit. But you cannot sustain both.

The lesson which emerged from five years of attempts to contain engine costs was that real savings could only be achieved by the removal of technical freedom: the engine freeze. All attempts to limit expenditure by ever-tighter technical restrictions failed. This is why we currently have a frozen engine, which will soon have to be replaced. The consensus is that the replacement will have to have a budget - a limit on what can be spent on development and a limit on unit cost, just like the engines being developed for road cars. The alternative would be to go back to unlimited expenditure on racing engines by the major car companies. This was never a rational approach, but would be insane in the current climate.

If we apply these lessons to the rest of a Formula One car, we can see that attempts to rein in expenditure with detailed rules will not work. They did not work on the engine and they will not work on the chassis. Detailed rules stifle inventiveness and innovation. But, worse, they do not significantly reduce costs. As with the frozen engine, real savings could only be made with a frozen chassis, an obvious absurdity.

If we wish to see innovative technology in Formula One, the only way is to limit expenditure and allow the engineers freedom to do their best within a fixed budget. This is exactly what happens in the real world and it is the only way forward for Formula One. Without technical innovation, Formula One will wither and die. Without real cost constraints, Formula One will lose its teams. This is why the FIA is insisting on cost restraint as part of the Formula One regulations.

The final and overwhelming advantage of a cost constraint regulation is that it will provide technical freedom on a level playing field. With a limit on expenditure, the cleverest and most innovative engineering team will win. It will no longer be possible to substitute a massive budget for intellectual ability. In a technological sporting contest this must surely be the right way.

Setting the record straight

The FIA and FOM have together spent decades building the FIA Formula One World Championship into the most watched motor sport competition in history.

In light of the success of the FIA's Championship, FOTA - made up of participants who come and go as it suits them - has set itself two clear objectives: to take over the regulation of Formula One from the FIA and to expropriate the commercial rights for itself. These are not objectives which the FIA can accept.

Background

When Honda announced their withdrawal from Formula One in December 2008, they had already entered the 2009 Championship and were contractually bound to compete. Two things were then clear to the FIA. First, any of the manufacturers could stop at any moment. The FIA would have no recourse against the main company, only against the team which would have no assets in excess of its debts. Secondly, it was quite possible that other manufacturers would stop before 2010.

Renault was dependent on the French government. It seemed doubtful that taxpayers' money would continue to be used to contribute to this team's high levels of spending. Toyota's car manufacturing operations were facing their first loss in modern times and might not wish to continue to pour hundreds of millions into a race team while BMW, who were making sacrifices in their core business in order to cut costs, might not want to continue to spend heavily on their team.

Faced with the prospect of only 18 cars in Melbourne 2009 and the possibility of worse to come in 2010, the FIA had to act. There were two obvious steps. First, approach Mr. di Montezemolo to see if the car manufacturers would guarantee the presence of their teams in 2010 so that we would not have a repeat of the Honda situation. Secondly, begin talks with FOTA about reducing costs to the point where the manufacturers would be less likely to stop, the independent teams would be viable and perhaps some new teams would enter to fill the empty spaces.

Mr. di Montezemolo promised to secure the necessary guarantees from the main car manufacturing companies (not to be confused with guarantees from the teams). He continued to promise this all through the winter, most recently at a meeting he had with the FIA's President on 23 February 2009. Not one such letter has been forthcoming - not even from Mr. di Montezemolo's own company FIAT.

At the same time FOTA and Mr. di Montezemolo rebuffed all attempts to hold meetings to discuss cost reduction. There was no need, the FIA were told. FOTA's own measures were adequate and they would make up for the shortage of cars by each running a third car. By March it was clear that FOTA had no intention of facilitating the entry of new teams, indeed were opposed.

It was also clear that if the FIA wanted new teams in 2010, it had to publish regulations, otherwise it would be too late for a new team to build a car. The FIA also had to consider what level of expenditure would work for a new team and how to ensure that a new team with relatively limited resources would not be dangerously slow.

This led to the World Motor Sport Council (WMSC) decision of 17 March which introduced a voluntary financial regulation and technical freedoms for the capped teams to enable their cars to achieve Formula One levels of performance. Ferrari voted against the financial regulation at that meeting but not against special technical freedoms for the new teams (i.e. Ferrari did not vote against the "two-tier" system).

Even after this vote, FOTA were not prepared to talk. Neither was Mr. di Montezemolo, even privately. In the absence of any negotiation or any sign that the promised guarantees of participation from the car companies would be forthcoming, it was essential to publish detailed regulations and invite entries from new teams. Otherwise there was a real risk that there would not be enough cars for Melbourne in 2010.

The detailed regulations were discussed and voted on at the WMSC meeting of 29 April. The new Ferrari representative on the WMSC was Mr. di Montezemolo, replacing Jean Todt whose Ferrari contract finished on 31 March. Mr. di Montezemolo chose not to attend but gave a proxy to Mr. Macaluso, the Italian president of Karting, who also did not attend but joined the meeting by video link. His was one of two votes against the new rules but no reasons or alternative were offered.

An exchange of letters then began with Ferrari's lawyer and a meeting was arranged between all the FOTA teams and the president of the FIA on 15 May. John Howett as vice-chairman of FOTA led their delegation in the absence of Mr. di Montezemolo. As soon as the FIA raised the question of the financial regulation, Mr. Howett tried to lead a walk-out of the teams. This did not succeed but during the meeting it became known that Ferrari had begun emergency proceedings in the French courts seeking to prevent the introduction of the 2010 rules. It was clear that FOTA had no intention of negotiating anything but simply expected the FIA to agree to all its demands.

A further meeting was held on 22 May, this time with Mr. di Montezemolo present. FOTA explained that they had three major reservations. Rule stability, governance and the 2010 regulations, in particular the "two-tier" system. It was explained that it had already been agreed to substitute technical help from established teams for the two-tier system at the Heathrow meeting, so this was no longer an issue. This was pointed out to Mr di Montezemolo at least five times during the meeting but he and FOTA are still talking about it today.

The FIA also offered to extend the 1998 Concorde Agreement, which would take care of stability and governance at least to a degree that had satisfied all the teams for 10 years up to 2008. The FIA was asked to postpone its entry date. It was explained that the Sporting Code did not provide for such a suspension and that, in any event, potential new entrants needed to know urgently if they had a place in the Championship.

On 29 May, the eight remaining FOTA teams submitted conditional entries. Among the conditions were a requirement that the FIA forthwith sign FOTA's new Concorde Agreement (which diluted the Sporting Code, made an outside body, the CAS, the ultimate appeal court, allowed any team to veto rule changes and removed the FIA's right to insist on changes if the cars became dangerously fast). FOTA also crossed out references to the International Sporting Code on their entry forms and wanted the 2010 Rules rescinded notwithstanding that a number of new teams had already submitted entries.

A further meeting was held on 11 June at which FOTA were represented by Ross Brawn (Brawn), Stefano Domenicali (Ferrari), Christian Horner (Red Bull) and John Howett (Toyota). After nearly five hours of talks, it was agreed that the FOTA and FIA cost-reduction objectives were very close if not identical and that the financial experts from both side should meet without delay to seek a common position on detail. Also, the FIA's proposal to extend the 1998 Concorde Agreement in order to avoid interminable negotiations was well received. Agreement was also reached on some minor modifications and clarifications to the 2010 rules.

No sooner had all this been agreed than FOTA put out a statement saying no progress had been made in the meeting. This blatant falsehood demonstrates once again that elements in FOTA simply do not want agreement.

On 15 June, the meeting of the financial experts took place. However, the FOTA representatives had been forbidden to discuss the FIA's financial regulations, thus rendering it impossible to seek a common position. The meeting did examine FOTA's ideas on cost reduction, but, as presented, these amounted only to a voluntary system which would be incapable of preventing a wealthy team from outspending its competitors and triggering another financial arms race.

Governance

FOTA says, "the sport needs better governance." The FIA and Ferrari extended the 1998 Concorde Agreement back in 2005 and the FIA is prepared to do the same with all the teams that enter. Once that is in place the FIA and the teams can look at updating it to a 2009 version. But this is not the point. Formula One needs a strong and impartial regulator because of the nature of the sport, the high stakes and the competitors - people who want to win (literally) at any cost. There are several well-known examples of this - involving at least four FOTA members - over the past few years.

Good governance does not mean that Ferrari should govern. Ferrari now claim that the procedures followed by the FIA are contrary to their agreement with the FIA, but in reality they never objected to these procedures (indeed they voted for them) until they were not happy with the decisions themselves. Ferrari has been officially (as well as unofficially) represented on the WMSC since 1981 and never objected to the process or decisions until April and May this year.

Technology

FOTA says, "The new rules dumb down the sport". Not so, the 2009 regulations introduced greater technical freedom in several areas. The 2010 Regulations will allow even greater freedom. Compare this with the FOTA proposals: almost no testing, no KERS, homologated gearbox, homologated bodywork, limitations on factory activities, enforced shutdowns and so on. Instead of finding economic ways to do innovative things (which is the spirit of Formula One and also the challenge for the automotive industry) the FOTA proposals would impose restrictions on activities and minimise the technical challenge. When Brawn and others came up with the idea of the double diffuser, the other teams attacked them in the media, challenged them in front of the stewards at two race meetings and then took them to court. The FIA will ensure that Formula One is the most technologically challenging motor sport - and it will be financial restrictions that make this possible.

Two sets of rules

FOTA says, "Two sets of rules will ruin the sport." The 2010 regulations were structured so as to allow new entrants some technical advantages in order to enable them to get to the back of the grid. The original intention was not to have the 2009 teams race under those rules. What is interesting is that for several of the existing teams, the idea of greater technical freedom with financial constraints was very attractive. Left to their own devices, at least half the existing teams would have adopted those rules. In any event, it was agreed as far back as the Heathrow meeting that there would only be one set of rules and this was re-affirmed in Monaco and again last Thursday. Now that the new entrants are in place, one set of rules can be agreed.

Intrusiveness

FOTA says, "The FIA will be able to intrude on our businesses", referring to the FIA's proposal to regulate the amount of money spent. If there is no intention to cheat, regulation should not present a threat. The FIA already regulates every aspect of technical performance and deals with vast amounts of confidential proprietary technical information without partiality or 'interference'. In any case, the FIA has already agreed that the financial regulations will be managed primarily by self-verification by the team's auditors and directors.

DNA of Formula One

FOTA says "A budget cap will damage the DNA of Formula One." Setting a limit on expenditure on certain aspects of competing in Formula One evens the playing field. Isn't Formula One above all about competition? It also allows new teams to come in - the only new team into Formula One in the last several years was Super Aguri which could not survive even with manufacturer backing. But when you analyse the total cost for a manufacturer it will still be uncomfortably high, even with a €50 million cost cap. Take Ferrari: with €50 million on the chassis and racing, add the same again for drivers, about €80 million for engines and another €20 million for marketing and you have a total spend of €200 million. Perhaps that is less that the €400 to €500 million their lawyer said a top team is spending now, but surely it is enough for a team to spend on entering two cars in 20 races a year?

And finally

The FIA remains committed to finding solutions for Formula One and has always been ready to accept reasonable compromise whilst retaining the overall principle that it will continue to lead and regulate the sport for the benefit of all stakeholders. Formula One will have a full grid in 2010 with a single set of regulations. It is essential that these include clear and precise financial regulations.

Relevant Documents

1. Correspondence between Ferrari lawyer Henry Peter and FIA Secretary General Pierre de Coninck
2. Correspondence between Ferrari President Luca di Montezemolo and FIA President Max Mosley
3. FOM-FIA-Ferrari announce Concorde Agreement extension
4. Letter to Ferrari President Luca de Montezemolo from FIA President Max MosleyFIA

SOURCE: Autosport

The longer all this goes on the more I wish we would see the back of Ecclestone and Mosley. All of this is highly damaging to the sport and distracting far too much attention from the reason we watch the sport - for the racing.

I think the teams are now at loggerheads, and the comments from the FIA about sticking to the 40m budget cap mean that chances of getting this resolved by the 19th are non-existent, and the chance of a breakaway becoming more likely.

All we need now is for someone to step forward as a potential replacement for the FIA, able to name even half a dozen tracks willing to instantly sign up to a new series, and for FOTA to sign with them. Given the short timeframe involved the technical side of the cars would have to remain broadly the same as this years design, but atleast there would be a sport to watch with the teams we want to see.

I think the key to any breakaway is for FOTA to stick together. No one is really interested in watching a series that consists of Force India, Williams, and a few new entrants. We want to see Ferrari and McLaren battling it out alongside other big names like Renault, BMW, Toyota (and now of course Brawn :) ). Redders made a good point that we could also see more attempt at getting into the US audience. For such a huge nation of racing fans, not to have atleast 1 race is crazy considering the number of tracks they have.

I'd like to see another Racky's Rant on the situation, now we've got a load more information :)

Redders1989

If that is what you want then that is what you shall get Redders, although I was thinking about starting my own F1 blog on Gamespot now I have some free time.

Still now that the pleasantries are out of the way it is time to get down to business with the second edition of

Racky's Rant

Is it interesting how much has changed between my last entry and this one, back then the idea of a breakaway series seemed preposterous and many of us expected there to be some form of agreement in place by now.

Instead we are in the middle of what is undoubtedly the biggest crisis F1 has ever faced and one that could have massive repercussions for Formula one fans across the world, and could send tremors through the whole of motorsport, and it seems the chance of any winners comings out of this are practically zero.

The real shame is that this stopped being about F1 long a while back and now appears to have become a battle of egos, which in my opinion originates from an event that would appear to have very little to do with budget caps and technical regulations. This may surprise some of you but I am in fact talking about last years Sex scandal.

Ever since the News of the world published the story about what Max Mosley gets up to in his spare time he has been a laughing stock, not only in motor racing circles but in the eyes of the mass media, and ever since Honda pulled out of Formula one I believe Max has been trying to use the budget cap as some for of imaging salvaging opportunity. In many ways I can't blame him as he does deserve to be remembered for such achievements such as his contributions to safety rather than his slightly more unusual pastimes, unfortunately it appears he has let his personal motives get in the way of what is best for the sport and he is part of the reason why we have ended up in the mess we are in now.
This hasn't been helped by the FIA stance on the matter who after initially seeming willing to let there president run the show have now put there weight behind Max which has left him in a position similar to the one Davy Ryan put Lewis in back in Melbourne where he is unable to make any changes to his position as he risks coming under heavy fire from the FIA.

Of course in any disputes there are always to sides to the argument and the role of FOTA is just as important. Even though the FIA have, in the last few days, tried to make out that FOTA are the villains of the piece it is clear that in many peoples eyes FOTA have been more reasonable side in this argument and in general I would go along with this view.
From the start FOTA have made it clear they had they were not only representing themselves but also the views of F1 fans across the globe, which in general they have done. The other big reason for there support is that they have been more proactive in trying to find a solution, as well as trying to find ways to resolve the FIA fears of an exodus with a new concordat.
Compare this with the actions of the FIA who have not changed much since they came up with the £40 million budget cap apart from dropping the two tier system.
This in no way means they are without fault with the major issue being that each team has there own agenda with teams like Ferrari and Toyota opposed to any form of budget cap whereas teams like Brawn wishing that any cap imposed was higher that the proposed £40million. There is also the issue that teams like Toyota, Renault and BMW will walk away from the sport regardless of what, if any, agreement is made.
The other issue, as I mentioned earlier, is that this is now a battle of egos that goes far beyond a simple budget cap and FOTA decide to take this opportunity to try and change the way the sport was governed in order to make sure that there was far more stability in the suture, a noble intention but unfortunately that helped to fuel the flames of disagreement between the FIA and FOTA and has now left them in a similar position to Max where they cannot back down for the fear of losing face. Something which would be a bitter pill for the manufactures to swallow given that being humbled but the sports governing body in not going to help there brand in an already difficult market, and will also not please the sponsors who they represent.

It is a real shame that the positive mentality from those initial meetings in December has been lost by both parties as I honestly believe that if they had not got there personal agendas involved we could now be looking forward to a more sustainable form of F1 next season with a greater number of closely matched teams competing in a sport that would still be deemed the pinnacle of motorsport in the eyes of the general public.

In many ways I can see Friday being one of the darkest days in Formula Ones recent history where politics eventually succeeds in achieving something it has been threatening to do for sometime and manages to tear the heart and soul out of F1. With both sides no closer to a resolution they both seem to be more interested in blaming each other for a split whilst employing to school yard technique of trying to get the bigger kids to fight there battle for them with FOTA turning to the European manufactures and World motorsport council for help and Max Mosley the combined might of the FIA and Bernie. Regardless of whether the manufactures set up another series F1 will be left as a shadow of its former self with a relatively inexperienced grid still trying to find there feet and attempt to fill the massive shoes left by the combined technical and financial of the manufactures that has, in my opinion, raised F1 to another level and proved the old adage right of 'quality over quantity'.

As for the matter of what a rival series would mean for both sides, I believe that is something for another day and another rant.

The prince of Monaco will probably also follow wherever Ferrari goes, which kind of sucks for me :lol: so should FOTA F1 were to exist we could see.

Monaco
Indianapolis
Gilles Villeneuve
Imola
Jerez/Valencia autodrome
Magny Cours
Silverstone
Zandvoort (maybe)
Hockenheim/Oscherleben (maybe)
Suzuka/Aida/Fuji (dependant on who has contracts and where, alternate FOTA F1 and FIA F1 year on year.)
Kyalami in South Africa?
Adeleide street circuit (possible with aussie V8's still using the circuit once a year)

I would add the A1 ring (Ostereichring) but if you google image search any recent images you will see the circuit is in no way useable.

There are still many circuits available and its a shame we would lose Monza and Spa at least for now if a breakaway happens but that remains to be seen.

FOTA URGE FOR COMPROMISE IN ROW

The Formula One Team's Association (FOTA) has sent a letter to the FIA calling for urgent compromise in the row over next year's rules to prevent the possibility of a breakaway series.

According to a report from Reuters news agency, the teams have offered to sign up to a version of the proposed budget cap, with provisos included, and have asked to extend the entry lock-off deadline to July 1 to allow time for further negotiations and sign a new Concorde Agreement.

"The time has come when, in the interests of the sport, we must all seek to compromise and bring an urgent conclusion to the protracted debate regarding the 2010 world championship," Reuters quoted the letter as saying.

"We hope that you will consider that this letter represents significant movement by the teams, all of whom have clearly stated a willingness to commit to the sport until the end of 2012.

"We would therefore strongly but respectfully submit that you consider these proposals and seek to avoid the potential departure from Formula One of some important teams.

"Now is the time to find a reasonable and rapid solution to the outstanding issues."

FOTA says in the letter that its teams could sign up to a version of the budget cap, or what it calls the 'resource restriction proposal' so long as it is independently policed and universal for all. In return for accepting this compromise the current teams would assist new entries with engine supplies and technical assistance.

"We detect... that a solution might be possible based on the FOTA resource restriction proposal but with measures introduced," the letter said.

"We would propose in this respect that we nominate a top firm of independent accountants who will devise an audit methodology that will be implemented by all of the teams.

"This methodology and the annual results would be disclosed to the FIA... we can see no reason why such a system based on objective verification of compliance would not be acceptable to all parties."

SOURCE: Autosport

LOLA WITHDRAWS F1 ENTRY APPLICATION

Lola has withdrawn its application to enter Formula 1. The announcement follows the UK racing constructors' failure to receive a place on the initial 2010 entry list.

In a statement released on Tuesday the company said: "Lola F1 Team Ltd has today advised the FIA of the decision to withdraw its application to enter the 2010 FIA Formula One World Championship.

"Significant financial investment has been made in producing its 2010 contender and the FIA had requested that the Lola F1 Team remain in a state of readiness for a possible future entry.

"Lola F1 Team has thanked the FIA for giving its application to enter the 2010 FIA Formula One World Championship serious consideration."

Though Lola would not comment further on the matter, AUTOSPORT understands that owner Martin Birrane is hugely disappointed not to have received an entry given the work and effort his company had put in to proving it could be a legitmate and serious competitor.

Birrane told AUTOSPORT last weekend that the company was already well down the line with the design of its 2010 contender, but that it had needed time to absorb the news of its failure to make the initial list before making a final decision on its future.

"We've had our model in the tunnel for the last week, and we have a proper car now," said Birrane.

"We've had a lot of people working on it for seven weeks, with a lot of input from people with current experience in Formula 1."

SOURCE: Autosport

MOSLEY OFFERS DEAL BUT DEADLINE STANDS

FIA president Max Mosley says there will be no backing down on his insistence that Formula 1 teams lift the conditions attached to their entries within 48 hours, but has hinted that a compromise could now be on the cards.

Following a letter from the Formula One Teams' Association to Mosley and Bernie Ecclestone, viewed as a last ditch effort to avert teams walking away from the sport, the FIA laid out the terms by which it would accept a deal.

Although rejecting suggestions that the deadline for the matter be delayed from this Friday to July 1, and that standard engine supplier Cosworth be forced to detune its engines, the FIA says it would be willing to talk about governance changes and revisions to the cost cap.

In the letter, a copy of which has been seen by AUTOSPORT, Mosley said there was no chance of a revised Concorde Agreement being sorted before Friday - so the 1998 version would have to be used as an interim.

"If we start to modify the governance provisions of the 1998 Concorde Agreement, a lengthy discussion will begin," he wrote. "There is no time left for this because we must answer the remaining applicants for 2010 no later than Friday."

He added: "Our proposal is therefore that all parties agree to accept the 1998 governance provisions by means of an exchange of letters. We can then negotiate a new 2009 Concorde Agreement under the protection of the 1998 arrangement.

"After all, we lived with these for ten years; a few more weeks or months should not cause any difficulty."

Regarding FOTA's suggestions that independent accountants be appointed to oversee compliance with a budget cap, Mosley said that such an idea had already been suggested by the governing body.

Furthermore, he wants the teams to accept the £40 million limit for now, prior to further discussions that could see it changed in the next few weeks.

"A fundamental problem with the FOTA proposal was the absence of a clear figure," wrote Mosley. "The teams need to know what the constraints are, so do we.

"We therefore propose that you accept the 2010 rules, as published, which we agreed with you last year. If necessary, these can be revised with the above governance procedures in due course."

Mosley confirmed that there would be no two-tier regulations in 2010, which had been one of the biggest complaints of FOTA.

However, he said that Cosworth would be allowed to run to 2006 regulations because it had "neither the time nor the resources to return for 2010."

And in a bid to get the matter sorted in the next day or so, Mosley said he would write to the teams to ask them to accept the FIA's offer so they could drop the conditions attached to their entries before Friday's deadline.

"We will shortly send a letter for signature to each team. If signed and returned, the letter will make the above proposals legally binding and the relevant team's entry unconditional," he said.

SOURCE: Autosport

That doesn't douns like any kind of concession from the FIA - the deadline is staying the same and we want you to agree to the same proposals we have all along. The FIA has said no to a two tier system, but that is a moot point if they stick with their plan for a 40m budget cap.

FOTA are not being offered anything new to make them want to accept the deal.

I'm not clear what this business with Cosworth is. Are they going to be the sole engine supplier or something for next year? Why are they using a 2006 model engine instead of something designed for next season?

MOSLEY OUTLINES DEAL OFFER TO TEAMS

FIA president Max Mosley has informed teams of the package of rules that he is willing to accept for next year, AUTOSPORT has learned, as a final push is made by the governing body to end the standoff over entries to the 2010 championship.

The eight members of the Formula One Teams' Association (FOTA) have until Friday to lift the conditions attached to their entries - and efforts are increasing on both sides to try and reach a settlement.

After a day of further letters between motor racing's governing body and FOTA, Mosley has as promised laid out the terms by which he wants the teams to sign up. And although there had been fears of a total breakdown in discussions between the two parties, Mosley has informed FOTA that he is willing to make some movement on the question of governance in the sport.

He has told teams that he is prepared to discuss the FIA's International Court of Appeal, and also remove the controversial Appendix 5 to the 2010 Sporting Regulations. This latter element had angered teams, who feared that it gave the governing body carte blanche to impose whatever rules they wanted.

Mosley also said that he was willing to change some of the technical regulations for 2010. If the teams agree, the moveable wing rules will remain as they were for 2009, 4WD cars will not be allowed, tyre warmers will continue and the engine rules will remain as they are for this year - except customer Cosworth units will be allowed to run unrestricted. Also gearbox rules will remain as they are for 2009, as will testing limitations.

Mosley also made it clear that he would be willing to accept a 100 million Euros cost cap limit for next year, providing that it was reduced to 45 million Euros for 2011. This was the same figure that was outlined in a letter sent to FOTA president Luca di Montezemolo following the team meeting in Monaco.

Outline plans were also detailed for how the budget cap would be policed with 'self-reporting of compliance using a reputable auditor' used. Mosley also confirmed that breaches of the budget cap rules would not result in on-track sanctions, but would instead be 'financial against a pre-agreed formula.'

FOTA now has 48 hours to to decide whether to accept the terms and sign up for F1, or decide to stand firm and risk being left off the grid.

SOURCE: Autosport

The main concern I have with what he's proposing is:

engine rules will remain as they are for this year - except customer Cosworth units will be allowed to run unrestricted.

What does that mean? Sounds like an odd thing to say, I thought we'd have one set of rules for everyone. That said, we've had specifically rev-limited engines for certain teams before without problems I think, so it could be similar.

HEIDFELD: ROW IS DAMAGING SPORT

BMW Sauber driver Nick Heidfeld believes the current row between the FIA and the Formula 1 teams is damaging the sport.

"I think now it's starting to be in a phase where it damages F1," Heidfeld told reporters at Silverstone. "There are so many people I speak to who just don't like it.

"Up to a point it is understandable that there are different points of view, but I think if it continues for longer it will damage the sport."

He added: "Obviously I try to watch it. It's not easy because sometimes there is news every couple of hours. It's obviously very interesting but it's very difficult to know what's really going on - what's shown in the front and what's going on in the background.

"I think at the moment nobody really knows what's going to happen. For me, I don't really expect anything. I hope they will find a solution by tomorrow but I wouldn't be surprised by anything."

When asked if he would follow BMW into a breakaway championship or stay in a Formula 1 without major manufacturers, the German admitted it would not be an easy decision to make.

"Well, first of all I cannot tell you exactly what my contractual situation is," he said. "And secondly I would have to first of all look at exactly what was going to happen - which teams would participate in which series, and a couple of other things.

"This is not so easy to answer. As I already said at the last grand prix, the normal target of all the racing drivers is to be in the highest series with the best teams and the best drivers. So most likely wherever that is, if you can make a clear decision that's where I want to be."

Heidfeld suggested, however, that a new championship with the car makers would probably be the strongest one, and that he would like to be in it.

The BMW Sauber driver is optimistic that a solution to the current row can still be found.

"If you make it very dependent on the word 'F1', then yes," he said when asked if he was worried politicis ruining F1.

"But if you speak about the highest series rather than F1, then a bit less so, because if the manufacturers go into another series it could be very strong as well, even if it was not labelled F1.

"But my hope is still that they will find a solution by tomorrow. I have the feeling that there will not be another deadline, but who knows.

"Hopefully by tomorrow at least we will know what's going to happen, because what I find... let's say 'interesting'... is that so many more people I speak to now, just normal people that I meet, really are fed up with this.

"It's not only in Formula 1 that we want to have a result. It seems like nobody on the outside can stand it anymore. It's just too extreme."

SOURCE: Autosport

ALONSO READY TO FOLLOW TEAMS OUT OF F1

Double world champion Fernando Alonso says he would be prepared to walk away from Formula 1 if it did not feature the best teams and drivers in the world next year.

The 27-year-old Spaniard told reporters at Silverstone that he hoped the FIA and the Formula One Team's Association could resolve their differences over the 2010 regulations.

But he added that he would rather race for a FOTA-organised breakaway series or another category altogether, than compete in what he perceived to be a dilapidated F1, if they couldn't.

"I'm always optimistic and I really hope they find a solution, but I know that it is difficult times," he said. "It is a critical position and moment for Formula 1 and we have to be ready for tomorrow.

"We will see, I really hope tomorrow there is good news," he added. "In my opinion, I support the FOTA teams, they did a great job in the last couple of years, when there is something very big for Formula 1.

"We have contracts with our teams so we will go close to them until the end."

Alonso said that he was not ready to retire from competition and that his top priority was to race in the world's most competitive and technologically advanced series - whatever it may be called.

"At least for me it is not attractive at all the new Formula 1, with the small teams and no drivers," he said.

"We want to compete with the best teams in the world, with the maximum technology, we all want to compete with the best drivers, and this is what F1 and competition is all about. So if this is not what Formula 1 is about next year, then for sure it will be another category with that.

"I will not retire, I will drive for another championship," he said. "If it is not a new series, I will not join the new Formula 1 as I said with there small teams. Because for me this is not technology, this is not F1, this is not the category we loved for the last 60 years.

"So, there are more categories and hopefully I will find an attractive one outside F1, or outside Europe, and I will keep racing. I am 27-years-old only."

Alonso reiterated, however, that the ideal scenario would be for FOTA and the FIA to agree a deal tomorrow: "I am not closing any doors but as I said hopefully tomorrow there will be good news and all these things will not matter anymore."

SOURCE: Autosport

FOTA TO MEET TO DISCUSS FIA RESPONSE

Team principals are to hold a meeting at Renault's headquarters in Enstone on Thursday night to discuss their response to the FIA's offer of a deal to end the stand-off over entries to the 2010 championship.

As revealed by AUTOSPORT yesterday, FIA president Max Mosley has outlined the terms he would be willing to accept from the teams not currently entered - with the final deadline for them to lift conditions attached to their applications expiring tomorrow.

Mosley is offering a compromise 100 million Euro cost cap for next year, and says he is willing to address concerns about governance with a new Concorde Agreement, but only if the teams first lodge unconditional entries so changes can then be made.

With sources suggesting that the teams are not totally happy with what has been offered, a meeting of the Formula One Teams' Association (FOTA) has been arranged at Renault's team factory for 7pm local time.

No statement about the conclusions from the meeting are expected this evening, but teams have until the close of business in Europe on Friday to lift the conditions attached to their entry - or risk being left off the grid.

The FIA remains in discussion with a number of potential teams about being granted a place on the grid next year if any of the current teams are left out.

Controversially, the FIA has already put Ferrari, Red Bull Racing and Scuderia Toro Rosso on the entry list because it believes the teams made a commitment to the sport in deals they signed with the governing body and Formula One Management several years ago.

FIA president Max Mosley is expected to be at Silverstone tomorrow.

SOURCE: Autosport

FOTA TO LAUNCH BREAKAWAY SERIES

The Formula One Teams' Association have thrown the sport into total chaos by announcing its eight members will set up their own breakaway series at the end of the season.

Following weeks of talks with the FIA aimed at breaking the deadlock over the bitter row over the 2010 budget cap and governance of the sport, FOTA issued a statement on Thursday night - on behalf of Ferrari, McLaren, BMW, Renault, Brawn, Toyota and both Red Bull teams - saying they had grown tired of the governing body's demands and had been left with "no alternative" than to start preparing for a new championship.

The cataclysmic announcement comes after all eight of its members met for 11th hour talks at Renault's Enstone factory on Thursday evening to decide whether or not they would enter unconditional entries for the 2010 grid ahead of Friday's deadline imposed by FIA president Max Mosley.

Blaming both the governing body and F1's commerical supremo Bernie Ecclestone for trying to divide the group, the teams' body says it has strived to strike a peace deal to secure the championship's future but said it was no longer willing to "compromise on the fundamental values of the sport".

The FOTA statement said: "The FIA and the commercial rights holder have campaigned to divide FOTA.

"The wishes of the majority of the teams are ignored. Furthermore, tens of millions of dollars have been withheld from many teams by the commercial rights holder, going back as far as 2006. Despite this and the uncompromising environment, FOTA has genuinely sought compromise.

"It has become clear however, that the teams cannot continue to compromise on the fundamental values of the sport and have declined to alter their original conditional entries to the 2010 World Championship.

"These teams therefore have no alternative other than to commence the preparation for a new Championship which reflects the values of its participants and partners."

FOTA says its new championship will includes all of Formula 1's existing household stars and major figures, adding that "transparent governance"

"This series will have transparent governance, one set of regulations, encourage more entrants and listen to the wishes of the fans, including offering lower prices for spectators worldwide, partners and other important stakeholders," the statement added.

"The major drivers, stars, brands, sponsors, promoters and companies historically associated with the highest level of motorsport will all feature in this new series."

Full story to follow...

SOURCE: ITV-F1

ED: Wow... just... wow. I can't believe it has come to this, but it has.

David Croft discusses the announcement made by FOTA

I'm slightly suprised this has happened. I thought there would have been a last minute agreement between the FIA and FOTA.I dont think the FIA will let them go that easily espicially Ferrari since they say they have a contract with them.

I wonder if FOTA will start recruiting new teams now since they are having a new series i'm sure many teams would like to join.

I hoped there could be a last minute deal, but this was always inevitable unfortunately. Never in the history of F1 have such a set of insane rules been suggested, dropped, picked up again, reworded, and caused such confusion for fans, teams and drivers. Never have the rules been applied so inconsistently as in recent years. And never has F1's position as the world's Premier Motorsport been comprimised in such a way. It's time for a fresh start, with rules and a governing body that will strive to work for the good of the fans, the teams and the drivers, and the sport as a whole.

I suppose we can now start to speculate the details of 'Formula FOTA', which includes teams, drivers, regulations and venues. Some of this has already been discussed, but let's look at some exciting possibilities:

- Silverstone could be in for a Grand Prix, I'd almost bet money on that
- Some rejected F1 teams could enter, perhaps Lola who withdrew their application for F1 (were they in on this breakaway already I wonder?)
- Avoiding rubbish parade circuits which don't allow overtaking (some may be needed for financial reasons however, and I'll accept that)

And more. I'm sure they've been in contact with many parties who could get involved, sponsors, new teams, venues, and they've seen that a new series is feasable. It will be a new experience for us all, and hopefully it will be enjoyable. TV coverage concerns me, but if it's ITV, then we'll be in for James Allen, which will at least help the sport in this country because it is a familiar voice. It would be even better if the breakaway voids the BBC's F1 contract, then they could afford to buy the new series' rights.

FIA BLAMES FACTIONS IN FOTA FOR SPLIT

The FIA has blamed factions within the Formula One Teams' Association (FOTA) for the failure of the two parties to reach agreement on the future of the sport, following the announcement that there will be a rival series next year.

The eight members of FOTA met at Renault's Enstone factory on Thursday night to discuss their response to the Friday deadline to lift conditions attached to their entries for the 2010 championship.

After deciding they could not accept what had been put on the table for them by FIA president Max Mosley, the teams confirmed that they would be setting up a breakaway championship in 2010.

The FIA has responded by expressing its disappointment about the decision, and says that some elements with FOTA had always tried to scupper a deal.

"The FIA is disappointed but not surprised by FOTA's inability to reach a compromise in the best interests of the sport," said the statement.

"It is clear that elements within FOTA have sought this outcome throughout the prolonged period of negotiation and have not engaged in the discussions in good faith.

"The FIA cannot permit a financial arms race in the championship nor can the FIA allow FOTA to dictate the rules of Formula 1."

The FIA says that its deadline for teams to lodge unconditional entries will remain as the close of business today, with the full 2010 entry list to be announced on Saturday.

"The deadline for unconditional entries to the 2010 FIA Formula World Championship will expire this evening," it said. "The 2010 FIA Formula One World Championship entry list will be announced tomorrow."

SOURCE: Autosport

N.TECHNOLOGY WITHDRAWS F1 APPLICATION

Italian squad N.Technology has withdrawn its application to enter Formula 1 in 2010, AUTOSPORT can reveal.

N.Technology was one of several teams who were on the reserve list after not being included on the original one released last week by the FIA.

However, AUTOSPORT understands the team has decided to inform Formula 1's ruling body that it has withdrawn its application because the circumstances have changed since it applied and it no longer wants to be involved in a sport without the major manufacturers.

The move comes after the Formula One Teams' Association announced plans for a breakaway championship after failing to reach a compromise deal with the FIA.

N.Technology follows Lola in withdrawing its application this week.

SOURCE: Autosport

HORNER: F1 FUTURE NOW IN FIA'S HANDS

Red Bull Racing team principal Christian Horner says the future of Formula 1 is now in the hands of the FIA, following the Formula One Teams' Association's decision to start up a rival series.

Horner, who was one of eight team chiefs to commit his signature to the new breakaway championship, said the teams had gone as far as they could before finally being forced to take this decision.

Asked if he thought that the events of the past 24 hours signalled the end of F1, Horner replied: "Perhaps, but being the eternal optimist, never say never.

"But the teams feel they have gone a long, long way and it's unfortunate we find ourselves in this situation.

"It's really now in the hands of the FIA."

Horner said that the FIA's imposed deadline of today for the teams to drop the conditions on their entry for the 2010 F1 world championship had left them with no alternative but to act in the manner they have.

"There have been efforts to try and find a solution, but unfortunately that hasn't been achieved in the timeframe," he said. "The positions have hardened on both sides.

"The teams feel they have gone as far as they can, and the FIA feel they have gone as as as they can, and we've ended up in a situation where a solution hasn't been found."

Asked if he really believed a breakaway series would take place if FIA president Max Mosley did not soften his stance, Horner said: "We've no alternative because if we can't race in Formula 1 under the current rules, if you want to keep competing then you've got to look at something else."

Horner also believes that the contracts binding Red Bull Racing and Ferrari to Formula 1 until 2012 may no longer be valid.

"Agreements are private and confidential between the parties, but we do have an agreement similar to Ferrari," he said. "That also relies on rules being introduced in a certain way which hasn't been the case.

"The bottom line is Red Bull want to race against the best teams and best competitors in the world, and the thought of not being in a championship where Ferrari, McLaren, Renault and others, the big major teams, is unattractive to us with all due respect to teams we have never heard of before."

SOURCE: Autosport

Interesting turn of developments, some interesting ideas already like a FOTA race at Silverstone if they get the championship.

Its not good for the sport however, the teams should not carry all the power and it seems that this is how they feel it should be. I can see why it has been done but I can also see why the FIA put these budget caps into force.

This is interesting also from a legal point, would the BBC be forced to continue to air Formula 1 or will the contract they have allow them to not fund it anymore due to the major teams dropping out thus the sport being left pretty much empty in terms of who is racing in it now.

This is interesting also from a legal point, would the BBC be forced to continue to air Formula 1 or will the contract they have allow them to not fund it anymore due to the major teams dropping out thus the sport being left pretty much empty in terms of who is racing in it now. Garfield360UK

If the BBC are smart, the contract will have stated they will broadcast on the basis that Ferrari are competing. If no Ferrari, they have a right to pull out of the deal. If they don't have that loophole though, then they're stuck showing a sport that a majority will no longer have interest in.

Interestingly, F1's Official Website has no news regarding the breakaway right now.

FRY: FIA TALKS CONDUCTED IN GOOD HEALTH

Brawn CEO Nick Fry insists that negotiations between the Formula One Teams' Association (FOTA) and the FIA were always conducted in good faith, despite claims from the governing body that factions within the teams' body always wanted to scupper a deal.

With F1 rocked by the decision of FOTA to reject the FIA's rules for 2010 and instead choose to set up its own championship, all eyes are now on the next move by the governing body, with next year's entry list due to be published tomorrow.

The FIA issued a statement on Friday morning claiming that elements within FOTA had never intended to reach a deal to secure F1's future, and that talks between the two parties had not been engaged in 'good faith.'

Fry, however, has rejected such claims, and insists that the decision by FOTA to launch its own series was not taken without much thought.

"We had good discussions last night but it was a very difficult decision," said Fry at Silverstone. "The negotiations with Bernie Ecclestone and Max Mosley had some length and were conducted in good faith, but we did not get to where we wanted, so we'll do something different."

Fry said that there was not one single factor that proved insurmountable for the teams, but it was rather a number of factors that forced them to act.

"It's a combination of things," he said. "Some of the decision-making has been done without the consensus of competitors. The drive to reduce costs is supported by the teams but the processes are not supported by a number of teams.

"Costs have got too high for our team, so for smaller teams getting down to a figure like that is not so much of an issue. It's a much more difficult task for bigger teams and they need more time to do it."

And Fry echoed comments from Red Bull Racing's Christian Horner that it was now up to the FIA to sort the matter out.

"I hope the discussions will continue," he said. "The ball is in Max Mosley's court. I do hope from our point of view discussions can continue.

"The way by which we reduce the costs needs to be agreed. Principally it's a process issue. Our company had to restructure at the start of this year following the withdrawal of Honda. Some companies are much larger and have agreements with their staff. Those based in Germany and Italy, there are trade unions involved."

SOURCE: Autosport

That's because it wont be F1 anymore! :lol:

A lot of contracts to broadcasters, circuit owners, suppliers and sponsors have just gone *poof* Max and Bernie will be pooping bricks right now.

ECCLESTONE URGED TO BROKER PEACE DEAL

Formula 1 supremo Bernie Ecclestone has been urged to step forward and broker a peace deal between teams and the FIA to head off the threat of a breakaway championship.

The eight members of the Formula One Teams' Association (FOTA) sent shockwaves through F1 on Thursday night when they announced that they were setting up a rival championship for next year.

With fears that the breakaway could prove damaging, just as American racing suffered when Champ Car and the Indy Racing League split, former world champion Jackie Stewart believes that Ecclestone must play a part in sorting the situation out.

"The biggest player now that may have to be involved in this is Bernie, because after all he has the commercial rights," said Stewart.

"I am sure he does not want a breakaway group, because then that would seriously threaten [F1 owners] CVC and the Bernie Ecclestone package.

"Bernie knows how to do things, he has been very successful in F1 and the sport has been successful with much of what he has done. So he will be playing a fairly big role within the next two or three days.

"But frankly now the teams have made their decision and I don't think they will necessarily have to talk to the FIA at all this weekend. I think they should just get on with the British GP because it is one of the biggest events in the calendar.

"It is very important for the leaders of the world championship to consolidate their position and I believe they should not even bother to talk until Monday or Tuesday."

Ecclestone's role in events is being seen as crucial now, with sources close to FOTA suggesting that the body would not be averse to him playing a role in its new championship.

The man himself was keeping tight-lipped about the situation on Friday morning, however, ducking questions from the media about the situation.

"You'll have to ask Max about it," said Ecclestone about the breakaway plans. "For me, this situation is just back to the future."

Stewart believes that teams' frustrations at the way F1 has been run was the spur for making the bold step to set up their own series.

"I think it's been coming for some time," said Stewart, who has been a long-term critic of the FIA. "I think the teams feel that they have been bullied in some way for quite a long time, trying to force things through.

"I've said for a long time that the FIA needs to be restructured and there needs to be more corporate governance. If that had taken place we would not be in the position we're in at the present time.

"The constant change of the values of what has been suggested, with Max saying first of all £30 million [for a budget cap], then £40 million, then £40 million and we won't put engines or motorhomes in that, it is constantly changing the goalposts. I don't think you can do that in a sport that is the largest capital investment sport in the world."

There are now suggestions that the only way a breakaway can be averted is if FIA president Max Mosley sees through with his plans to step down from his current role when his term ends in October.

An announcement on his intentions could be made as early as next week, with the World Motor Sport Council meeting on Wednesday.

Stewart has no doubts that teams want Mosley's reign of running the sport to come to an end.

"I think they do want Max to go because I think frankly some of the decisions made over the year have been very questionable... I think a lot of people are kind of fed up with the dictatorial attitude."

He added: "I think right now the teams don't have to do anything. They just have to decide how they are going to do what they have said they are going to do, but I think from their point of view it seems that they have made that decision. I think it is now up to the FIA to perhaps come with a totally different proposal."

SOURCE: Autosport

Ecclestone decided to keep shush on the whole topic:

BBC: "Bernie, what's the latest?"
BE: "...About what?"
BBC: "You know what about, the situation with Max and all..."
BE: "What's wrong with Max?"

I'd be glad to see the back of Bernie and Max, so hopefully this breakaway does go ahead.

Some sort of replacement body like the FIA would need to be formed to make decisions, but it would be good to see much more power returned to the teams when it comes to rule changes rather than the farce of recent months where rules get announced, imposed, changed, retracted, debated and end up confusing everyone.

Jonathan Legard explains reasons for breakaway

Sutil: Breakaway would be bad for F1

Horner: We have a duty to protect F1

ALONSO: FORMULA ONE IS "FINISHED"

Renault's two-time world champion Fernando Alonso believes Formula One is "finished" following the announcement of plans for a breakaway series.

On Thursday, eight of F1's major teams, including Renault, said they intended to establish a rival championship.

And Alonso told the BBC that what was left of the old F1 would be inferior.

"Formula One is finished. It will be a standard engine, small teams and no drivers - this is not the Formula One people want," the Spaniard said.

"The new series will be the new Formula One."

The breakaway move is the latest chapter in the bitter row over budget cap proposals.

World motorsport boss Max Mosley wants to introduce a voluntary £40m budget cap to curtail a "financial arms race" among F1's teams.

But eight of them, under the umbrella of the F1 Teams Association (Fota), have strongly resisted Mosley's attempts to force this and other rule changes through.

Mosley's latest letter proposes a £86m budget cap for 2010, falling to £39m in 2011.

Ferrari, Toro Rosso and Red Bull have refused to race under the optional £40m cap originally proposed, with only Williams and Force India definitely on the starting grid next season.

Speaking before the teams issued their breakaway threat, Alonso said: "I hope they find a solution, but these are difficult times. It is a critical position for Formula 1.

"If we do not race in Formula 1 next year it changes many things. It won't be the same. We know we'll race, but it will be different."

Asked if he would drive in a different series next year if the worst case scenario does unfold and there is a split, Alonso replied: "Of course. I won't retire, I will drive for another championship.

"We want to compete with the best teams in the world, the maximum technology, we all want to compete with the best drivers.

"If there is no new series, I will not join the new Formula 1 as I have said, with the small teams.

"It is not F1, not the category we have loved for the last 60 years.

"There are other categories, and hopefully I'll find an attractive one outside of F1, or outside Europe. I will keep racing because I am only 27 years old.

"Maybe the US. There is some good competition there, like the Indy cars, and then there is Le Mans. I am not going to close any doors."

SOURCE: BBC Sport

ED: Link goes to audio of the conversation with Fernando Alonso.

RAIKKONEN WILL FOLLOW FERRARI OUT OF F1

Kimi Raikkonen says he will feel some sadness if he is forced to turn his back on Formula 1 next year - but says he will have no second thoughts about following Ferrari to a breakaway championship.

With the Formula One Teams' Association (FOTA) having announced on Thursday that it is to set up a breakaway series in 2010, it means that many big name stars will stick with their teams out of F1.

Raikkonen said at Silverstone, prior to confirmation of the breakaway plans, that he would be following Ferrari wherever they went.

"For sure the team are going to race somewhere, I have a contract, so I race whatever they are planning to do," said the Finn.

"Of course we all want to be in F1 with a proper F1 as it has been, with good rules, but it is not up to the drivers. There are a lot of things going on, and I am going to race wherever this team is going to be. If F1 then great, but if not then it is going to be something else.

"I would like to be in F1. That is why I came to F1 and why I am still here. It is the biggest racing in the world, with the best drivers and teams. So it will be sad to lose it."

SOURCE: Autosport

FORCE INDIA WAITING ON F1 FUTURE

Force India boss Vijay Mallya has suggested his team is undecided on its future in Formula 1 following FOTA's decision to create a breakaway championship.

Force India and Williams have been the only two current teams who submitted unconditional entries for the 2010 championship.

However, FOTA announced on Thursday night that, after failing to reach a deal with the FIA, will launch its own series with its eight member squads.

Mallya said he was sad that it was not possible to reach a compromise deal, and suggested his team will consider its options following this weekend's events.

"We have been completely open and transparent with FOTA," said Mallya in a statement.

"We have shared the legal and commercial obligations that necessitated an unconditional entry by Force India to the FIA Formula One World Championship 2010. I think the transparency with which we acted was appreciated by FOTA but they chose to suspend us, like Williams.

"We were always hoping there would be compromise between FOTA and the FIA but at midnight last night I was notified by FOTA about their decision, which already seems to be heading towards a breakaway championship or series.

"We find this to be very sad and disappointing, particularly since the FIA World Championship and the Formula One brand has been developed into an invaluable property over many decades.

"As of now, Force India is a confirmed entrant to the FIA 2010 Formula One World Championship and we wait to see the developments over the weekend. Until a clear direction has been identified, we do not wish to make any further comments."

SOURCE: Autosport