Ferrari Loses Its Appeal Against FIA's Budget Cap

Maria RahmanCorrespondent IMay 20, 2009

MELBOURNE, AUSTRALIA - APRIL 02:  The badly damaged Ferrari of Felipe Massa of Brazil is taken away after crashing at the start of the Australian Formula One Grand Prix at the Albert Park Circuit on April 02, 2006 in Melbourne, Australia.  (Photo by Mark Thompson/Getty Images)

After Tuesday's hearings, a French court ruled on Wednesday that Ferrari had no valid arguments against FIA's budget-cap proposals.

Ferrari's claim that "the FIA has broken contractual obligations over rule changes" was dismissed by the court, thereby giving the go ahead to FIA's proposals for the 2010 season.

Ferrari has gambled and lost in the battle with the FIA over 2010 season rules. In my idea this is a very unfavourable development, weakening the position of the teams and reinforcing FIA's stronghold.

How could Ferrari take such a risk? Did they believe they would win the court-case? Or were they really so desperate that they felt they should grasp whatever chance they may have to fight FIA?

The F1 teams, united in the FOTA, now have to act fast in a renewed attempt to have the FIA allow for a more lenient or no budget-cap and equal rules for all teams, regardless of their spending.

Team-bosses are set to meet in Monaco prior to this weekends Monaco Grand-Prix.

May 29 is the deadline for the teams to register for next season. If FIA will enforce the proposals as they are, we may see several of the big teams like Ferrari, Toyota, and Renault quit Formula 1 racing under FIA rule.

Drama in F1 has only increased after this court-ruling.

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