Posted on May 2, 2009


Yesterday I met with Max Mosley for a long interview which is in today’s Financial Times. He was in London briefly following this week’s world motor sport council meeting where the £40 million budget cap was voted through. I posted yesterday on the letters exchanged between him and Luca Di Montezemolo Ferrari president. Ferrari are very angry about the budget cap plans and the ‘two tier’ system which might see two classes of car racing in F1 next year. Montezemolo’s letter hints at a possible legal challenge to the plans. I asked Mosley whether F1 could survive without Ferrari. “It More…

Posted on May 1, 2009


In response to the letter Ferrari president Luca di Montezemolo wrote on April 28th to the FIA president expressing concern about having two classes of F1 car and about a possible legal challenge to the budget cap, Max Mosley wrote back the following day. He quotes FIAT boss Sergio Marchionne, with whom Montezemolo works closely and his belief that in an economic crisis such as we are in at the moment, only an extreme response will do, “We are just going to slam the brakes on, cut everything back to essentials. It may be painful, it may be ugly. But More…

Posted on May 1, 2009


Although Ferrari is refusing to comment on yesterday’s budget cap announcement, some letters between its president Luca di Montezemolo and FIA president Max Mosley have come to light. These show Ferrari’s concerns and hint at arrangements between Ferrari and the governing body, which Ferrari feel have not been honoured. On April 28th Montezemolo wrote to Mosley and other world council members, unhappy that budget caps had been put on the agenda of a meeting which was called to hear the McLaren case. He wrote, ” I have always been concerned about its introduction (cost cap) mainly because I consider that More…

Posted on April 30, 2009


The introduction of the £40 million budget cap poses serious problems for half of the F1 teams and the idea of a two-tier system is an issue for everyone. The reaction I have had today from ringing around the teams is that the independents welcome the move to a budget cap and are pretty happy with the level. They acknowledge that the engines being left out of it for 2010 provides an element of the ‘glide path’ that was being discussed in recent weeks, as does the exclusion of driver salaries and marketing costs. With those added on, for a More…

Posted on April 30, 2009


The details of the Budget cap have been released by the FIA. It will start next season. The level has been set at £40 million with no ‘glide path’ from a higher figure to a lower one. It will present teams with an obligation to lay off a significant number of people quickly, which in itself is an expensive exercise. The FIA has maintained the idea of a two tier championship, with teams able to spend more if they wish to, but the cost controlled teams enjoying greater technical freedom. This will greatly annoy Ferrari and BMW. The FIA statement More…

Posted on March 22, 2009


In an interview with the Sunday Telegraph, FIA president Max Mosley has said that the £30 million figure, which was announced on Tuesday as the level for the budget cap due to be introduced next season, is merely the first round in a negotiation. “It is provisional. I actually think it could be done for £25 million but that’s just my opinion. All my advisers think it should be more. When people calm down a little bit they will see that all of this is brilliant for Formula One. It won’t hurt the DNA of the sport – £30 million is still More…



COUNTDOWN TO NEXT RACE
Strategy Report
Innovation and Technology brought to you by TATA Communications
Senna DVD
Download the Chequered Flag Podcast here
MTS
Darren Heath
Sport Right Now