Thursday, March 19th, 2009...9:09 am
FIA propose a €30 million Euro Budget Cap
As well as announcing the new system for deciding the championship, the FIA have decreed that from 2010, teams will have to conform to a €30 million budget cap. The non compliant teams are free to spend as much as they like, but the budget capped teams will get more technical freedom, more engine power and better aerodynamics, to make them competitive. The boards of the big car manufacturing companies will never accept this and you’d have a two class F1, which never worked in the turbo/non-turbo days.
Some of the background behind this is to remind the teams who rules the sport and to also reduce the teams’ demand for a higher share of the revenues. If FOTA thought they were now indivisible in the face of everything in the sport thrown at them by the FIA and FOM, they may have to think again as the budget cap will appeal to the independent teams such as Williams, Force India and Red Bull.
Let’s face it, although FOTA may be kicking and screaming, they will get over it as they always have and probably negotiate the limit back up to 50 million Euros which is reasonable enough for both independents and manufacturer backed teams. Independents have less organisational change to deal with and manufacturers can downsize without rewriting their racing team infrastructural DNA.
Imagine the amount of forensic accountancy jobs created? Accountants may even hope in adding glamour as they become associated with Formula 1! Well, its a dream anyway.
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