Ferrari Lose Budget Cap Court Appeal

Ferrari’s appeal against the introduction of a proposed £40m budget cap in F1 in 2010 by motorsport governing body the FIA has failed after a French court ruled against the car manufacturer.

The FIA proposal had prompted Ferrari to threaten to quit F1 if the plans were enforced, with Renault, Red Bull and Toyota holding a similar view.

With the initial legal appeal failing, Ferrari is now considering taking legal action in the civil courts – although failure there would test the firm’s resolve of its quit threat which many saw as political posturing.

The Italian team also insist they will carry on working with other F1 teams to find a solution to a crisis that is escalating ahead of the official deadline for entries into the 2010 world championship on 29th May.

But, in a statement issued following the Tribunal de Grande Instance’s decision, they again said that they are prepared to leave the sport.

‘If it is not possible for all parties to reach agreement, then… Ferrari will not enter its cars in a competition that, with the planned scenario in place, would see a watering down of the characteristics that have endowed F1 with the status of the most important motor sport series.’

The FIA’s regulations for 2010 propose giving teams who accept the cap greater technical freedom than those wishing to carry on with unlimited budgets, such as Ferrari.

The introduction of the move was part of the FIA’s desire to cut costs and ensure F1’s survival amid the global financial crisis – along with encouraging new teams to enter the sport.

Reacting to the rejection of the court injunction on Wednesday, FIA president Max Mosley said he welcomed the court’s decision.

‘No competitor should place their own interests above those of the sport in which they compete.
‘The FIA, the teams and our commercial partners will now continue to work together to ensure the well being of the Formula 1 in 2010 and beyond.’

All 10 team owners had met with F1 commercial rights holder Bernie Ecclestone and Mosley in London this week and, though it was agreed a two-tier championship was not acceptable, Mosley insisted there would be ‘no compromise’ on the cap.

Having failed to emerge with a concrete solution then, team bosses are now set to meet in Monaco ahead of this weekend’s Grand Prix where they will again hold discussions with Mosley.