Sorry for the small hiatus in posts, got some professional commitments to take care of.

The following is a guest post :

It began early this year, with an announcement of plans to impose a £40m (just under $65 million) budget cap in order to encourage new teams to participate in Formula 1 Racing. On the surface, it seemed a good way to level the playing field, and bring in new blood, but the old guard of F1 took issue.

First Ferrari, then Toyota and Red Bull, and finally, on May 9th, Renault as well, declared their intentions to pull out of the racing series for 2010, with Renault’s Flavio Briatore stating that if the budget cap wasn’t addressed, his team would have, “…no choice but to withdraw from the world championship at the end of 2009.”

Why does the budget cap matter?

While none of the high-profile teams object to the concept of cost cutting, the concern over a budget cap is that it would essentially split F1 racing into two tiers – one comprised of the teams that can comfortably operate within the budget limitations, and one that cannot.
Further, it is expected that such a division would also cause a technological cap, where some teams are allowed to use race cars with engines without rev limiters, or to run cars with flexible wings, while others are not. In fact, the currently outlawed flexible rear wing has already been approved to next year’s teams working within the budget caps, and such a design modification could provide an edge of up to two seconds per lap to cars so fitted.

Explained Bernard Rey, the Renault F1 team president, while his company has always considered Formula One racing to be the cutting edge of motor sports, and the best venue for displaying technical achievements, “We remain committed to the sport. However, we cannot be involved in a championship operating with different sets of rules and, if such rules are put into effect, we will be forced to pull out at the end of this season.”

Other Concerns?

The FIA never made a public comment when Ferrari threatened to quit, and never openly addressed the other teams either. However, it has been rumored since Renault’s statement that the budget cap is not the only concern.
As Renault’s statement explained, there is general disgruntlement between FOTA (the Formula One Team’s Association) and the FIA. A specific point of contention is that FOTA offered proposals of its own, including several cost-saving suggestions that were to be adopted in stages between 2009 and 2012 – proposals that were essentially ignored by the FIA, just as FIA never discussed their cap proposal with the teams.

Since Renault’s addition to the list of teams threatening to leave F1, the rumor mill has been busy. One such rumor, printed in AutoSprint magazine, suggests that Flavio Briatore will buy the Renault team and enter it under his own name in 2010 and beyond. This may or may not happen, and could be related to the loss of ING as one of Renault’s leading sponsors, but one thing is certain: the face of F1 is changing, and the big names we know now, may not continue to dominate the sport.

A German businessman by the name of Franz Hilmer applied for formula one entry for the 2010 season by the name of Brabham Grand Prix.

Meanwhile Brabham’s family werent too thrilled, infact they are currently looking at leal options saying that the German businessman is trying to misuse the goodwill their name has

“The family would like to make it clear that it is in no way involved with Brabham Grand Prix Ltd and was never consulted about plans to resurrect their historic name in F1,” a spokesman for the family said on Thursday.

“The family will take the necessary steps to protect their name, reputation and its goodwill.”

Another Spicy news item in the making

After suspending Williams formula one team for submitting their entries for the 2010 formula one season, the FOTA teams officially submitted their entries for the 2010 FIA Formula One World Championship.

Havent had time to go over all the details, so posting the official media release from FOTA here.

All FOTA Teams have today submitted conditional entries for the 2010 FIA Formula One World Championship.

FOTA confirms all its Members’ long-term commitment to be involved in the FIA Formula One World Championship and has unanimously agreed further and significant actions to substantially reduce the costs of competing in the Championship in the next three years, creating a mechanism that will preserve the technological competition and the sporting challenge and, at the same time, facilitate the entry in the F1 Championship for new Teams. These measures are in line with what has been already decided in 2009 within FOTA, achieving important saving on engines and gearboxes.

All FOTA teams have entered the 2010 championship on the basis that:

1) The Concorde Agreement is signed by all parties before 12th June 2009, after which all FOTA teams will commit to competing in Formula One until 2012. The renewal of the Concorde Agreement will provide security for the future of the sport by binding all parties in a formal relationship that will ensure stability via sound governance.

2) The basis of the 2010 regulations will be the current 2009 regulations, amended in accordance with proposals that FOTA has submitted to the FIA.

All FOTA teams’ entries for the 2010 FIA Formula One World Championship have been submitted today on the understanding that all FOTA teams will be permitted to compete during the 2010 Formula One Season on an identical regulatory basis and that they may only be accepted as a whole.

All FOTA 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 Formula One can be built, providing lasting stability and sound governance.

In an expected action, the FOTA (Formula One Team’s Association) suspended Williams formula one team for registering for the 2010 formula one season as the standoff over budget proposals continues between the FIA and FOTA. Many mainstream teams have threatened to quit formula one if the current plans are executed. Ofcourse in complicated proceedings as such, the fact that Williams F1 team decided to register for the 2010 formula one season make the things more difficult for the teams against the budget cuts.

In an official media statement, the Williams formula one team had said :

Oxford, UK. 27 May, 2009. Following Monday’s confirmation that the team has submitted its formal entry for the 2010 FIA Formula One World Championship, the Formula One Teams Association has today decided temporarily to suspend Williams F1 from membership of FOTA.  

Frank Williams, Team Principal: “FOTA’s decision, although regrettable, is understandable. However, as a racing team and a company whose only business is Formula One, with obligations to our partners and our employees, submitting our entry to next year’s Championship was unquestionable. In addition, we are legally obliged under our contract with FOM and the FIA to participate in the World Championship until the end of 2012.”