2010 F1 regulations - budget cap - Teams threaten to quit

JayVee · Post by **JayVee** » Mon Jun 15, 2009 10:16 am

The forceful inclusion of Ferrari in the FIA's entry list has escalated the crisis. I think it F1 will either split or Max will have to go.

I don't think the split will be that bad. Actually it will be bad for Williams as they will be running in Formula Cosworth and the rest in a renamed Formula 1

The easiest and quickest solution is for Max to step down and I hope that is what happens

Julian Mayo · Post by **Julian Mayo** » Mon Jun 15, 2009 10:58 am

JayVee wrote:The forceful inclusion of Ferrari in the FIA's entry list has escalated the crisis. I think it F1 will either split or Max will have to go.

I don't think the split will be that bad. Actually it will be bad for Williams as they will be running in Formula Cosworth and the rest in a renamed Formula 1

The easiest and quickest solution is for Max to step down and I hope that is what happens

The popular press in Europe, South Africa etc seem to be suggesting to Mad Max that it might be time to go. Surely there is someone in the FIA who can see what is happening, and will stand against MM in the upcoming elections ?????

Julian Mayo · Post by **Julian Mayo** » Mon Jun 15, 2009 11:20 am

In order to salve my battered senses, reeling as they are from all this I have just replayed Villeneuve snr and Rene Arnoux having a bit of a dice at Dijon in 1979. Well worth a google, and Mad Max can go and get stuffed for a while.

Ed · Post by Ed » Mon Jun 15, 2009 10:38 pm

The FIA is pointing the finger at elements within FOTA that wants to prevent any agreement. The FIA issued the following statement

FOTA

Last Thursday, the President of the FIA met a delegation from FOTA consisting of Ross Brawn (Brawn GP), Stefano Domenicali (Ferrari), Christian Horner (Red Bull), John Howett (Toyota) and Simone Perillo (FOTA).

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. 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 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.

The FIA will publish shortly a detailed and documented account of the facts in its dealings with FOTA.

---------------

The good sign is that they seem to be very close to an agreement. The bad sign is that they are still fighting!

Maksutov · Post by **Maksutov** » Tue Jun 16, 2009 3:26 am

JayVee wrote:The forceful inclusion of Ferrari in the FIA's entry list has escalated the crisis. I think it F1 will either split or Max will have to go.

I don't think the split will be that bad. Actually it will be bad for Williams as they will be running in Formula Cosworth and the rest in a renamed Formula 1

The easiest and quickest solution is for Max to step down and I hope that is what happens

I honestly hope so too, and this would be the best day in F1 history and the best day of the year for me

Maksutov · Post by **Maksutov** » Tue Jun 16, 2009 3:28 am

Julian Mayo wrote:
JayVee wrote:The forceful inclusion of Ferrari in the FIA's entry list has escalated the crisis. I think it F1 will either split or Max will have to go.

I don't think the split will be that bad. Actually it will be bad for Williams as they will be running in Formula Cosworth and the rest in a renamed Formula 1

The easiest and quickest solution is for Max to step down and I hope that is what happens
The popular press in Europe, South Africa etc seem to be suggesting to Mad Max that it might be time to go. Surely there is someone in the FIA who can see what is happening, and will stand against MM in the upcoming elections ?????

this is the question I have been asking myself for 10 years

Maksutov · Post by **Maksutov** » Tue Jun 16, 2009 3:34 am

Ed wrote:The FIA is pointing the finger at elements within FOTA that wants to prevent any agreement. The FIA issued the following statement

FOTA

Last Thursday, the President of the FIA met a delegation from FOTA consisting of Ross Brawn (Brawn GP), Stefano Domenicali (Ferrari), Christian Horner (Red Bull), John Howett (Toyota) and Simone Perillo (FOTA).

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. 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 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.

The FIA will publish shortly a detailed and documented account of the facts in its dealings with FOTA.

---------------

The good sign is that they seem to be very close to an agreement. The bad sign is that they are still fighting!

as stated in the other topic, this is simply Max Mosley rubbing to save his backside, again and again is trying to manipulate everyone in a very conniving manner.

Julian Mayo · Post by **Julian Mayo** » Tue Jun 16, 2009 7:01 am

Maksutov wrote:
Ed wrote:The FIA is pointing the finger at elements within FOTA that wants to prevent any agreement. The FIA issued the following statement

FOTA

Last Thursday, the President of the FIA met a delegation from FOTA consisting of Ross Brawn (Brawn GP), Stefano Domenicali (Ferrari), Christian Horner (Red Bull), John Howett (Toyota) and Simone Perillo (FOTA).

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. 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 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.

The FIA will publish shortly a detailed and documented account of the facts in its dealings with FOTA.

---------------

The good sign is that they seem to be very close to an agreement. The bad sign is that they are still fighting!

as stated in the other topic, this is simply Max Mosley rubbing to save his backside, again and again is trying to manipulate everyone in a very conniving manner.

Yup

Julian Mayo · Post by **Julian Mayo** » Tue Jun 16, 2009 7:10 am

Fota has refused to be drawn on Mad Max's last rant, saying that it is not interested in a war of words.

mlittle · Post by **mlittle** » Tue Jun 16, 2009 10:24 am

Julian Mayo wrote:In order to salve my battered senses, reeling as they are from all this I have just replayed Villeneuve snr and Rene Arnoux having a bit of a dice at Dijon in 1979. Well worth a google, and Mad Max can go and get stuffed for a while.

Now that's what motorsports is supposed to be, Julian; the best in the world going 10/10th's, every lap, every venue(doesn't matter whether its' a road course, oval, street circuit........)......to heck with politics, to heck with the manufacturers......I may actually find myself watching a breakaway F1 series............

Post by **Tim** » Tue Jun 16, 2009 10:32 am

What next for Formula 1 ? is my latest article on the blog on this crisis. Check it out

Ed · Post by Ed » Tue Jun 16, 2009 1:51 pm

The FIA expressed surprise at the European Automobile Manufacturers' Association (ACEA) press statement and issued the following response:

ACEA

The FIA is surprised that the European car manufacturers' association ACEA should have rejected the FIA's endeavours to reduce costs in Formula One. 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 One 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 One, 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 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.

The FIA would be happy to meet ACEA's representatives at any time in order to discuss the FIA's policies and to develop where possible a common set of objectives.

jido · Post by **jido** » Tue Jun 16, 2009 4:25 pm

Ed wrote:ACEA press release

ACEA members support changes in governance of Formula One

Brussels, 12/06/2009 - Today, the members of the Board of the European Automobile Manufacturer’s Association discussed the current situation prevailing in Formula One, and have concluded that the current governance system cannot continue.

ACEA has come to the conclusion that the FIA needs a modernised and transparent governance system and processes, including the revision of its constitution, to ensure the voice of its members, worldwide motorsport competitors and motorists are properly reflected.

They could stop here.

Ed · Post by Ed » Tue Jun 16, 2009 11:01 pm

The FIA and FOTA failed to reach agreement today on the issue of cutting costs. The FIA has declared that the financial regulations remain as published.

FIA statement:

FOTA Meeting - 16/06/2009

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.

Julian Mayo · Post by **Julian Mayo** » Tue Jun 16, 2009 11:43 pm

Ed wrote:The FIA and FOTA failed to reach agreement today on the issue of cutting costs. The FIA has declared that the financial regulations remain as published.

FIA statement:

FOTA Meeting - 16/06/2009

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.

That be that, then