19 June 2009

FIA "To Take Legal Action" Over F1 Breakaway Plans

Formula One has been thrown into chaos as eight teams confirmed plans to form a breakaway series, following a row with world motorsport boss Max Mosely over plans to introduce a budget cap for teams.

The sports governing body, the FIA, said it will begin legal proceedings over the plans, without delay.

In a statement it read: "The actions of FOTA as a whole, and Ferrari in particular, amount to serious violations of law including wilful interference with contractual relations, direct breaches of Ferrari's legal obligations and a grave violation of competition law.

"Preparations for the 2010 FIA Formula One World Championship continue but publication of the final 2010 entry list will be put on hold while the FIA asserts its legal rights."

The teams - which form the Formula One Team's Association (FOTA) - failed to reach a compromise with FIA president Mosley over plans to introduce a voluntary £40 million budget cap for teams to curtail a "financial arms race" in F1.

Ferrari, McLaren, Brawn GP, Renault, BMW Sauber, Red Bull Racing and Toro Rosso have all declined to enter F1 for 2010, following a meeting last night.

"The teams have declined to alter their original entries to the 2010 F1 Championship," they said.

"We've no alternative than to commence preparation for a new championship."

The FAI today responded to the news saying they were "disappointed" at the decision, but "not surprised" at FOTA's "inability to reach a compromise in the best interests of the sport".

The sports governing body said: "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 One."

FOTA said its championship would put F1 fans first, adding they are willing to commit to the current series until 2012, and after that they will form their own rival competition.

FOTA also it had tried to work with the FIA and Bernie Ecclestone, who holds the commercial rights to F1, to "develop and improve the sport" since forming last September.

The FOTA statement, released last night, read: "Unprecedented worldwide financial turmoil has inevitably placed great challenges before the Formula One community. Fota are proud they have achieved the most substantial measures to reduce costs in the history of our sport.

"Following these efforts, all the teams have confirmed to the FIA and the commercial rights holder that they are willing to commit until the end of 2012. The FIA and the commercial rights holder have campaigned to divide Fota. The wishes of the majority of the teams are ignored.”

(JM/BMcC)