FOTA: Scrapping Budget Cap Could Stop New Teams

Mike WilkinsCorrespondent IJune 26, 2009

MANCHESTER, UNITED KINGDOM - APRIL 17:  In this photo illustration  British pound coins can be seen next to American Dollar notes on April 17, 2007 in  Manchester, England. The British pound has hit the two Dollar mark today in trading for the first time since September 1992 as well as trading at a 27-month low against the euro.  (Photo Illustration by  Christopher Furlong/Getty Images)

Well well well...Nick Fry, CEO of Brawn GP has now admitted what most of us were wondering about.

The scrapping of the £40 million budget cap may have a negative effect on the three new teams set to join the grid for next season.

All three of the new teams, US F1, Manor GP, and Campos Meta, all submitted their entries because OF the budget cap, and it now remains to be seen whether they will now join the fray or not.

Fry has been quoted by Reuters as saying:

"If one of those three weren't able to get the funding to enter, there a possibility that others might be invited in."

This sounds very much to me that FOTA are expecting at least one of the new entrants to pull out, and that some of the well funded teams that were not named in the 2010 entry list, such as Prodrive, Lola, Litespeed/Lotus (Mike Gascoigne), and the Alex Wurz Superfund team may well suddenly pop up on the list.

Personally, I was surprised that set-ups such as Prodrive and Lola were rejected and fully expected one the chosen candidates to pull out before the FOTA/FIA agreement was announced. This can only reinforce that view.

Hopefully US F1 (or USGP as it will have to be called as someone already owns the name US F1) will remain, as I think Formula One needs to raise its profile in the States, and this is an ideal opportunity, especially if Danica gets a drive!