Formula 1 Dispute Settled

30 May 2009

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Ferrari agree new deal to settle F1 dispute

Ferrari ended Formula One's civil war for another season by agreeing to race in the 2010 season's World Championship, after threatening to quit over budget capping rules.

And the sport's most successful outfit were joined by Williams, McLaren, BMW Sauber, Toyota, Renault, Red Bull Racing, Toro Rosso, Brawn GP and Force India on Friday. The deal however, was conditional that they are able to operate on the basis of current technical regulations. With five other new teams left to battle it out for the possible three places left on a grid that could be expanded to 26 cars in 2010.

But the Formula One Teams' Association said the teams would compete until 2012 only if key conditions were met including the signing of the Concorde Agreement - the secret document that governs the sport.

In an official announcement FOTA said teams now look forward with optimism to collaborating proactively and productively with the FIA with a view to establishing a solid foundation on which the future of a healthy and successful F1 can be built.

The agreement was arrived at following two hastily conveaned crisis meeting between Fota and the FIA, one a fortnight ago which failed initially to provide an acceptable compromise. But a second meeting at the Monaco Grand Prix last week agreed in principle to delay the cap until 2011, as well as other  concessions to the teams on governance from motorsport boss Max Mosley .
FIA president Mosley's budget cap of £40m has been increased to £85m for next year after heated meetings with the teams in recent weeks. But in reality that figure is around £145m when the cost of drivers' salaries, engines, hospitality and marketing is taken into account.

New teams will also get cheap parts and technical assistance off their already well-established rivals.

But FOTA added it had only agreed 'further and significant actions to substantially reduce the costs of competing in the championship in the next three years'.

F1 had slipped into crisis when Ferrari threatened to end its 60-year participation over the cost-cutting plans, with the Italian team then joined by Red Bull, Renault and Toyota.

Toyota Motorsport boss, and Fota vice-chairman John Howett, believes his team's intention to commit to Formula One for the next three years ends the speculation regarding their future in the sport.

The FIA now has until 12 June to confirm its intentions.

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