Optional £40m Budget Cap Introduced for Formula One 2010

The FIA has announced that a £40 million ($60 million) optional cap will be introduced in 2010, for any competing team.

Earlier this year, Max Mosley, FIA President suggested a £30 million budget cap, but FOTA said this amount was too little to run an F1 team. 

The budget, will cover all team expenditure, except certain items, such as engine costs, driver salaries, hospitality, marketing, fines imposed by the FIA, and any other costs in which a team can demonstrate has no influence on the cars performance.

The big difference between teams which sign up, and teams which don't will be the technical freedom given to the capped teams. This will include, non-rev limited engines, adjustable rear and front flaps. Not only will technical freedom become a big bonus, but off-season testing will be unlimited, as will wind-tunnel testing.

The FIA has set-up a Costs Commission which will be chaired by an appointed chairman for a term of three years. It will be the WMSC who vote a member into the costs commission.

Accompanying the Chairman, will be two commissioners, one with vast financial knowledge, and the other with high-level experience in motor sport. Perfect for Ron Dennis then, or on second thought's, maybe not.

In a final bid to improve racing, the maximum cars permitted to enter the season has been raised from 24 to 26, allowing three new teams to enter - which is handy when three new teams have shown interest. These being USGPE (formally USF1), Lola and Prodrive.

In another show of support, the FOM will provide free transport for two chassis, and 10,000kg of cargo to each race. Dramatically reducing their costs.

- Story by Ryan Wood from The F1 Times