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9:26 AM
Max Mosley is meeting the Formula One Teams Association team principals in London on Thursday--although it is believed that not all of them may be present--as both sides of the 2010 entry dispute try to hammer out a resolution.
The entry list is due to be published Friday with Williams, Force India and Ferrari (against its will) expected to be on it, and possibly some other teams that have indicated at the last minute that that they are willing to switch to an unconditional entry. The field will be bumped up to 13 by a selection of the new teams.
Mosley's position was made public with the disclosure of a letter he wrote to FOTA founder and Ferrari chairman Luca di Montezemolo on May 26, five days after his meeting with team owners at the Monaco Grand Prix and three days before the entry deadline for the 2010 season. AutoWeek obtained a copy of the letter.
In the letter, Mosley confirms that in 2010, a higher-than-planned cost cap--to a maximum of e 100 million, or about $140 million at current exchange rates--would have to be in place. The cap would be then reduced to the published figure of £40 million, or $65.8 million, in the second season.
This presumably is an answer to those teams who insist they cannot downsize their staffs by next season, and would give them more time to do so.
In addition, the letter confirms that there would be no special rules advantages given to teams that adhere to the cost cap, and that the FIA would help the transfer of "know how" between current teams and new entrants for 2010 and possibly beyond.
There also is the so-called "Adrian Newey rule," which allows one team member's salary to be outside the cost cap, in addition to the drivers.
Intriguingly, the FIA concedes that it is willing to call the new arrangements something such as "financial regulations," as the cost-cap label is not popular with teams.
It remains to be seen whether either side will move far enough in Thursday's meeting to reach a compromise, but there remains a chance that some teams will jump the FOTA ship. Brawn GP and the two Red Bull teams are not hamstrung by the $70 million (e 50 million) penalty agreed to among the five factory teams after Monaco.
MAX MOSLEY'S LETTER TO LUCA DI MONTEZEMOLO
Dear Luca,
As you probably know, Simone Perillo and Tony Purnell have done considerable work on a possible resolution of our current difficulties.
I have now had an opportunity to look in detail at their ideas and to consult both within the FIA and among other actual and potential Formula One stakeholders.
Although it contains much that is useful, the document as it stands is rather too complicated. I hope you will agree that what we need now is simplicity, clarity and above all certainty. Have also reflected carefully on our meeting last Friday we could, at the limit, go as far as to propose the following to the teams which have applied to enter the 2010 Championship.
1. A cap in 2010. This could be as high as 100 million euros, but we must have a cap and we must have certainty.
2. For 2011, again we must have certainty with a cap at 40 million pounds (or, if preferred, 45 million euros).
3. We can agree that all teams race under the same 2010 rules. These would be as published, but with the technical and sporting advantages originally offered to cost-cap team deleted.
4. Instead of these advantages, we will facilitate know-how transfer between certain current teams and new entrants at least for 2010 and possibly for 2011.
5. We can agree that one employee per team in addition to the drivers can outside the cap for 2011 and thereafter.
6. We are prepared to negotiate a new Concorde Agreement along the lines of the partial draft which was sent to us with the teams' letter of 24 May. Our (very) preliminary view is that this draft is broadly acceptable.
7. We are happy to call the cost cap "financial regulations" or any other sensible term, as the teams prefer.
I understand you have a meeting tomorrow. It would be excellent if you were able to agree the above so that we could make a joint announcement.
Yours sincerely,
Max Mosley
The entry list is due to be published Friday with Williams, Force India and Ferrari (against its will) expected to be on it, and possibly some other teams that have indicated at the last minute that that they are willing to switch to an unconditional entry. The field will be bumped up to 13 by a selection of the new teams.
Mosley's position was made public with the disclosure of a letter he wrote to FOTA founder and Ferrari chairman Luca di Montezemolo on May 26, five days after his meeting with team owners at the Monaco Grand Prix and three days before the entry deadline for the 2010 season. AutoWeek obtained a copy of the letter.
In the letter, Mosley confirms that in 2010, a higher-than-planned cost cap--to a maximum of e 100 million, or about $140 million at current exchange rates--would have to be in place. The cap would be then reduced to the published figure of £40 million, or $65.8 million, in the second season.
This presumably is an answer to those teams who insist they cannot downsize their staffs by next season, and would give them more time to do so.
In addition, the letter confirms that there would be no special rules advantages given to teams that adhere to the cost cap, and that the FIA would help the transfer of "know how" between current teams and new entrants for 2010 and possibly beyond.
There also is the so-called "Adrian Newey rule," which allows one team member's salary to be outside the cost cap, in addition to the drivers.
Intriguingly, the FIA concedes that it is willing to call the new arrangements something such as "financial regulations," as the cost-cap label is not popular with teams.
It remains to be seen whether either side will move far enough in Thursday's meeting to reach a compromise, but there remains a chance that some teams will jump the FOTA ship. Brawn GP and the two Red Bull teams are not hamstrung by the $70 million (e 50 million) penalty agreed to among the five factory teams after Monaco.
MAX MOSLEY'S LETTER TO LUCA DI MONTEZEMOLO
Dear Luca,
As you probably know, Simone Perillo and Tony Purnell have done considerable work on a possible resolution of our current difficulties.
I have now had an opportunity to look in detail at their ideas and to consult both within the FIA and among other actual and potential Formula One stakeholders.
Although it contains much that is useful, the document as it stands is rather too complicated. I hope you will agree that what we need now is simplicity, clarity and above all certainty. Have also reflected carefully on our meeting last Friday we could, at the limit, go as far as to propose the following to the teams which have applied to enter the 2010 Championship.
1. A cap in 2010. This could be as high as 100 million euros, but we must have a cap and we must have certainty.
2. For 2011, again we must have certainty with a cap at 40 million pounds (or, if preferred, 45 million euros).
3. We can agree that all teams race under the same 2010 rules. These would be as published, but with the technical and sporting advantages originally offered to cost-cap team deleted.
4. Instead of these advantages, we will facilitate know-how transfer between certain current teams and new entrants at least for 2010 and possibly for 2011.
5. We can agree that one employee per team in addition to the drivers can outside the cap for 2011 and thereafter.
6. We are prepared to negotiate a new Concorde Agreement along the lines of the partial draft which was sent to us with the teams' letter of 24 May. Our (very) preliminary view is that this draft is broadly acceptable.
7. We are happy to call the cost cap "financial regulations" or any other sensible term, as the teams prefer.
I understand you have a meeting tomorrow. It would be excellent if you were able to agree the above so that we could make a joint announcement.
Yours sincerely,
Max Mosley
Gplaz
http://fans-bmw.blogspot.com/