Fota Suspends Williams F1 Over Budget Row

The Williams F1 team has been temporarily suspended from the Formula 1 Teams’ Association (FOTA) after breaking ranks and agreeing to sign up for the 2010 season, despite the ongoing talks with motorsport governing body the FIA over a proposed £40m budget cap.

The teams are in talks with the FIA over their disapproval of the financial plans for next year and several teams including Ferrari have said they will quit if a deal is not agreed.

With FOTA still haggling with the FIA over the deal, Williams’ decision to commit its future to the sport regardless of the negotiation was seen as a weakening of the representative body’s stance.

‘FOTA’s decision, although regrettable, is understandable,’ said team principal Frank Williams.

‘As a company whose only business is F1 with obligations to our partners and employees entering was unquestionable.’

Team chiefs met in Monaco at the weekend to discuss the proposals put forward by FIA president Max Mosley which are designed to bring new teams into F1, and further talks are planned for London this week.

Ferrari, Renault, Red Bull and Toyota have all threatened to pull out of the sport if the budgetary restrictions are forced through, but the day after the Monaco Grand Prix, Williams broke ranks and confirmed they were signing up for next season.

At the time, Williams chief executive Adam Parr said they felt ‘morally and legally obliged’ to make it clear the team would continue to take part in F1.

‘We owe it to our employees, sponsors and fans who are affected by statements that teams may not enter next year,’ he added.

Teams have until this Friday to submit their entries for 2010 season although this deadline could be extended in order to find a resolution. It is not clear how long Williams’ suspension from FOTA will be in operation.