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FOTA back down from leadership change demands, want negotiation on budget cap.

http://www.autosport.com/news/report.php/id/76263

Advantage Max?

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.

Max's response:
http://www.autosport.com/news/report.php/id/76266

On 11 January 2008, the FIA, FOM and the teams met in Paris. During the meeting
FIA President Max Mosley identified the ‘possibility of a worldwide recession which
would have an effect on the motoring industry’.

Several of the teams present suggested that the fairest and most effective way of
minimising the impact of the recession would be through the introduction of a
budget cap. John Howett (Toyota), Ross Brawn (representing Honda), Frank
Williams (Williams), Burkhard Göschel (BMW), Martin Whitmarsh (McLaren), Vijay
Mallya (Force India), Christian Horner (Red Bull) and Bernie Ecclestone (FOM) all
spoke favourably about the proposal for a cost cap and encouraged further
discussion on the subject.

Only Jean Todt (Ferrari) disagreed, stating that a cost cap was not achievable for
his team.

The minutes of the meeting concluded:
‘After further discussion, Max Mosley proposed that Tony Purnell
convene a meeting of the teams’ Finance Directors as soon as possible
to discuss on a figure or figures for costs excluding engine, marketing
and drivers for 2009, 2010 and 2011. This was UNANIMOUSLY
AGREED. It was also AGREED that Bernie Ecclestone and Max Mosley
would decide on a final figure. It was also AGREED that no press
statements were made about these plans as they would have severe
implications for employees and also might encourage sponsors to reduce
their sponsorship levels.

‘The next step would be to set up a Working Group to discuss the
measurement of how the money was spent. This would need to be in
place before 30 June 2008 because the rule would need to be introduced
as a sporting regulation for 2009. Otherwise other rules would need to be
in place for 2009 to cap teams’ budgets.’

The first meeting took place on 31 January 2008 and involved representatives from
every F1 team on the grid.

There were four meetings of the Financial Working Group between March and June
2008. All the current F1 teams except Ferrari enthusiastically endorsed the principle
of the cap. They worked hard on the detail. Minutes of these meetings can be made
available. In the circumstances, the FOTA claim that the cost cap rules were
introduced by the FIA without consultation cannot be sustained.

The Working Group developed a set of regulations that were ready by mid-June
2008. At least eight of the 2008 competitors supported the proposals. However,
Ferrari again objected and effectively prevented them from going forward.

In late 2008, galvanised by the departure of Honda from F1, FOTA began its own
process of looking at measures to reduce costs. Much of these were a reaction to
the FIA’s initiative. By March 2009, however, it was clear that the FOTA measures
were not going to produce the results needed. It had become essential to reduce
costs to the point where independent teams could survive, new teams could afford
to enter and manufacturer teams were less likely to leave. The FIA had to act and
do so in time to allow new teams to enter in 2010. This meant introducing rules to
reduce, definitively, the costs of competing in Formula One from 2010 onwards.
In the light of the active and enthusiastic participation of all teams except Ferrari in
drafting the original cost cap rules, it is difficult to understand the objections to the
cost cap which are now being raised.

Ross Brawn felt that the FIA and the teams’ albeit worthy attempts in the past to
drastically cut costs had failed due to the fact that although technical constraints had
been introduced to reduce expenditure, the teams had continued to spend in other
ways. He therefore felt that it might be preferable to consider budget caps in some if
not all areas of car development along with technical constraints as he felt that this
was the only way to really control actual spend.

Cant say id be overly upset with a break away series. Just means more motorsport to watch.

At least they are finding a solution.



Australia wouldn't get to see a second of the breakaway series.

At least they are finding a solution.



Australia wouldn't get to see a second of the breakaway series.

Even if this breakaway did happen, i dont reckon they would go to adelaide or melbourne. It would be one of the permanent circuits. Which only leaves Phillip Island really. But now im getting off topic as A) we dont even know this split will happen and B) Its all speculation.

Teams to launch breakaway series

By jonathan noble Thursday, June 18th 2009, 22:43 GMT

The Formula One Teams' Association announced on Thursday night that it is setting up a breakaway championship.

Following a four hour meeting at Renault's Enstone factory, the eight members of FOTA said it had grown frustrated with the FIA's stance against it and that it had no option but to create its own championship.

"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," said a statement.

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

More to follow.