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#196020 - 18th Jan 2008 2:47pm Budget cap to be introduced in 2009
krisGTi Offline
Forum Master

Registered: 31st May 2006
Posts: 2855
Loc: moreton
Formula 1 teams will no longer be able to spend their way to success under radical new regulations to be implemented next year.

From the start of 2009 teams will be subject to a budget cap covering large areas of their activities, FIA president Max Mosley has confirmed.

In a letter sent to 11 teams on Wednesday and seen by ITV-F1.com, Mosley stated that overall spending limits will be introduced after the proposal received broad support at a meeting of F1’s key participants in Paris last Friday.

The budget cap idea is a departure from the current approach to cost-cutting through ever more prescriptive technical and sporting regulations, which has proved less effective than the FIA had hoped because well-heeled teams have simply diverted resources into other areas such as wind tunnel development.

The cap will apply to all expenditure except engines (where separate cost-cutting measures have already been agreed), marketing and promotion, and the salaries of drivers and team principals.

“Starting in 2009, there will be a cap on expenditure for all Formula 1 costs other than engines, drivers and expenditure exclusively for promotion and marketing,” Mosley wrote in the letter.

“Because of the variety of arrangements, particularly shareholdings, team principals’ remuneration will not be included in the cap.”

The FIA will decide on a figure for the cap after a meeting between its technical advisor Tony Purnell and financial representatives of the teams in Paris on January 31.

It is understood that a proposed ceiling of $150m per season was mooted at last week’s summit, but did not win unanimous support.

The governing body will set up a Financial Working Group to devise a satisfactory method of policing the cap that will enable detailed regulations to be drawn up by the end of June.

If agreement is not reached by that time, Mosley is threatening more drastic cost-cutting measures, such as a ban on the use of wind tunnels and other research tools.

“If the Financial Working Group are unable to devise a satisfactory method of checking expenditure or if a majority of the competing teams do not agree the proposals by 30 June 2008, the cost reduction measures voted by the World Motor Sport Council on 7 December 2007 will be adopted for 2009 in their entirety,” Mosley wrote.

The letter also confirms that the “total freeze” on engine development will apply for the next five years rather than 10 as previously planned.

New power plants will be introduced in 2013 “to reflect the latest developments in modern engines”.

The FIA is targeting the start of next year as the deadline to reach agreement on objectives for the new engines with the manufacturers currently involved in F1 – with detailed regulations to be published on June 30, 2010.

While the specifics will have to be fleshed out, the governing body expects the objectives to include “low cost, long life, inexpensive running costs for independent teams and consistency with industry requirements for efficiency and low carbon emissions”.
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#196023 - 18th Jan 2008 3:01pm Re: Budget cap to be introduced in 2009 [Re: krisGTi]
Cali_16v Offline
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Registered: 17th May 2004
Posts: 6261
Loc: Birkenhead
Intresting stuff there Kris, nice one.
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#196028 - 18th Jan 2008 3:11pm Re: Budget cap to be introduced in 2009 [Re: Cali_16v]
krisGTi Offline
Forum Master

Registered: 31st May 2006
Posts: 2855
Loc: moreton
no worrys mate

an it was about time the fia did something to give other teams with less money a chance, its like the team is just buying the title an not working for it.
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#196030 - 18th Jan 2008 3:17pm Re: Budget cap to be introduced in 2009 [Re: krisGTi]
Cali_16v Offline
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Registered: 17th May 2004
Posts: 6261
Loc: Birkenhead
Thats what my dad just said, Ferrari just spend loads on their cars and the like of sauber don't have a real chance because they just haven't got the funds. I know they say it's the driver not the car, but in this sport the car plays a massive part.
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#196034 - 18th Jan 2008 3:53pm Re: Budget cap to be introduced in 2009 [Re: Cali_16v]
krisGTi Offline
Forum Master

Registered: 31st May 2006
Posts: 2855
Loc: moreton
its the car that drives its self now days the driver just sits there, coz if u look back about 30-40 years or so there wasent all this technology crap it was a driver who had 2 drive with out abs an all the other driving aids
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#196035 - 18th Jan 2008 4:02pm Re: Budget cap to be introduced in 2009 [Re: krisGTi]
fordsteve Offline
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Registered: 27th Jan 2007
Posts: 2126
Loc: wirral bromborough
that good stuff mate was reading the othere day that traction controll is baned this sesson as well
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#196043 - 18th Jan 2008 4:53pm Re: Budget cap to be introduced in 2009 [Re: fordsteve]
Mark Online   Reading


Wiki Master

Registered: 9th Nov 2003
Posts: 20959
Loc: Wirral
They may be capping them, but isn't it from this year they can have a "2nd" team under different colors so to speak.

So there will be 2 of the top teams wink
Its that complicated at times its hard to keep up.
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#196049 - 18th Jan 2008 4:57pm Re: Budget cap to be introduced in 2009 [Re: Mark]
Cali_16v Offline
Wiki Guide

Registered: 17th May 2004
Posts: 6261
Loc: Birkenhead
I'd know that one mark, so really should make races more competitive really shouldn't it.

I know if it was me i'd want to beat my sister company, therefore i'd drive/race harder and more "on the edge"

All in all makes better watching for us license payers.
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#196051 - 18th Jan 2008 5:00pm Re: Budget cap to be introduced in 2009 [Re: fordsteve]
MGCraig Offline
AlfaHolic
Forum Veteran

Registered: 16th Apr 2006
Posts: 5488
Loc: Spital
yup..traction control banned....so basically..regardless of what car u drive...all the experienced drivers will start off well..whilst others will mos likely crash off etc

more overtaking for once..

Might even make it easier for Hamilton to win this years title..

But as DC said..its gonna make it more dangerous...so Basically...this year is going to be the most dangerous year of F1 in like the past 10 years..Its 50 50 if its gonna be a success..

Plus also..yes its a shame to only have ferrari and mclaren up at the top for exampe...But I also think its even more of a shame to disallow teams to develop new technologies in engines etc...technology devloped in F1 is passed down to raod cars...improving car reliability and safety etc...

What is a shame...is the fact that fooball players are paid so much, considering they work once a week....maybe Mr ecclestone should go take over the FA...thatd rustle some feathers...
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#196054 - 18th Jan 2008 5:07pm Re: Budget cap to be introduced in 2009 [Re: MGCraig]
Cali_16v Offline
Wiki Guide

Registered: 17th May 2004
Posts: 6261
Loc: Birkenhead
Originally Posted By: Mi_Craig

What is a shame...is the fact that fooball players are paid so much, considering they work once a week....maybe Mr ecclestone should go take over the FA...thatd rustle some feathers...


raftl

So true.

All plays must wear the same boots, and only one ball is allowed per game, so if someone in the crowd nicks it, game over and the game score stands.
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#196061 - 18th Jan 2008 5:15pm Re: Budget cap to be introduced in 2009 [Re: Cali_16v]
MGCraig Offline
AlfaHolic
Forum Veteran

Registered: 16th Apr 2006
Posts: 5488
Loc: Spital
Originally Posted By: Dazzz
Originally Posted By: Mi_Craig

What is a shame...is the fact that fooball players are paid so much, considering they work once a week....maybe Mr ecclestone should go take over the FA...thatd rustle some feathers...


raftl

So true.

All plays must wear the same boots, and only one ball is allowed per game, so if someone in the crowd nicks it, game over and the game score stands.




Any Hit of rain....play is called off...supporters arent allowed in the stadium itself
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#196062 - 18th Jan 2008 5:16pm Re: Budget cap to be introduced in 2009 [Re: MGCraig]
Cali_16v Offline
Wiki Guide

Registered: 17th May 2004
Posts: 6261
Loc: Birkenhead
Hint of rain !!!!!

All players must call in the changing room and change boots and collect arm bands
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#196069 - 18th Jan 2008 5:30pm Re: Budget cap to be introduced in 2009 [Re: Cali_16v]
MattLFC Offline
Wiki Master

Registered: 14th Aug 2004
Posts: 22315
Loc: Moreton/Beirut/Mobile
Originally Posted By: Dazzz
Thats what my dad just said, Ferrari just spend loads on their cars and the like of sauber don't have a real chance because they just haven't got the funds. I know they say it's the driver not the car, but in this sport the car plays a massive part.

Sauber are owned by BMW, and have been for some years now. They have a pretty large chequebook!

After Enzo died, Ferrari F1 have basically got an open chequebook to do as they please, although Fiat are fast putting a halt to that to be honest.

Limiting money isnt going to save F1; rid the sport of the scandel's and cheats and it will be back where it was during its peak era's.

Capping will help competition somewhat, but I dont forsee it helping much within the next 5 - 10 years, simply because the rich teams are already that far ahead in terms of engine and chassis development, that the minnows will take years to even begin to catch up, even with equal budgets!

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