The Budget Cap War in Formula One

Formula One is going through changes not seen inthat agree to the cap, there will be little in the
the history of the sport. As you can imagine, theway of technological restrictions. Teams that don't
massive changes are not going smoothly. This isagree will be heavily regulated and at a major
particularly true for the cap instituted for 2010 bydisadvantage. The obvious choice is to agree to a
the FIA.cap, but it isn't as simple as that.
The FIA is the rule making body for Formula One.The larger teams have massive budgets. Toyota,
The leader is Max Mosley and he has been a veryFerrari, BMW and so on are easily spending $200
busy man. The rules of Formula One havemillion or far more. They have entered into
changed so dramatically that it is difficult to knowcontracts with companies past this season. They
where to start. The idea was to make the racinghave far more employees than they can keep
more exciting and cut costs. While costs haveunder a 40 million pound budget. The end result is
been cut, we have a one-sided championship thatthese teams would have to contract heavily and
has more or less already been decided after onlyit is something they seem unwilling to do.
the 5th race of the season. This is not good.The other issue is the nature of Formula One. It is
The next matter in the war between the teamssupposed to be the cutting edge of racing from a
and FIA is the budgetary cap. Mosley hastechnology stand point. All the rule changes and
indicated the teams are demanding a cap. Thebudget cap are "dumbing down" the sport. At this
teams seem to have a different view. As thepoint, it is difficult to see the difference between
budgetary cap is currently constituted, mosta Formula One car and an Indy Car under the
manufacturers have indicated they will leave the2010 rules. Obviously, they are different. That
sport rather than participate in 2010 under it. Thisbeing said, they are not much different.
includes teams such as Toyota, BMW, Ferrari,The teams are willing to agree to a budget. The
Red Bull and even Brawn, the current frontissue seems to be what that budget is and how it
runner.will come around. One has to assume it will be
So, what is the big issue with the budget? This isworked out. If not, Formula One will be a shadow
Formula One, so it is convoluted. The basic idea isof itself in 2010 and will suffer greatly.
the cap creates a two tier situation. For teams