Looks like the teams and the FIA have finally figured out a way to cap costs:

Starting in 2009, there will be a cap on expenditure for all Formula 1 costs other than engines, drivers and expenditure exclusively for promotion and marketing,” Mosley wrote in the letter.

“Because of the variety of arrangements, particularly shareholdings, team principals’ remuneration will not be included in the cap.”

The FIA will decide on a figure for the cap after a meeting between its technical advisor Tony Purnell and financial representatives of the teams in Paris on January 31.

It is understood that a proposed ceiling of $150m per season was mooted at last week’s summit, but did not win unanimous support.

The governing body will set up a Financial Working Group to devise a satisfactory method of policing the cap that will enable detailed regulations to be drawn up by the end of June.

If agreement is not reached by that time, Mosley is threatening more drastic cost-cutting measures, such as a ban on the use of wind tunnels and other research tools.

“If the Financial Working Group are unable to devise a satisfactory method of checking expenditure or if a majority of the competing teams do not agree the proposals by 30 June 2008, the cost reduction measures voted by the World Motor Sport Council on 7 December 2007 will be adopted for 2009 in their entirety,” Mosley wrote.

The letter also confirms that the “total freeze” on engine development will apply for the next five years rather than 10 as previously planned.

New power plants will be introduced in 2013 “to reflect the latest developments in modern engines”.

The FIA is targeting the start of next year as the deadline to reach agreement on objectives for the new engines with the manufacturers currently involved in F1 – with detailed regulations to be published on June 30, 2010.

While the specifics will have to be fleshed out, the governing body expects the objectives to include “low cost, long life, inexpensive running costs for independent teams and consistency with industry requirements for efficiency and low carbon emissions”.

From ITV-F1

 

Okay...

So does this mean that the teams will now move to China and India? More bang for the buck!

 

This is getting STUPID.

 

freeze motors....um the engine development will stop or be severely slowed down, then new engine developments....seems like then development will be years behind if they didn't freeze engines. isn't this the motor sport that is suppose to be cutting edge and most technical series. i think it's turning into IRL or cart with is stupid.

the FIA is screwing themselves over badly.

we will soon be seeing the same cars year after year until 5 years later.......thats exciting.

 

I assume you mean the current Champcar Series and not how the series was back when it actually was CART.

 

haha yea, i don't watch IRL or hamp much anyways, barely at all......

only things i keep up on is nascar to an extant, F1, and some NHRA stuff. racing is just getting a little boring to me. to much lets make everyone equal, well screw that if someone can do something to a car to make it perform better then props to them and that should be shown on the race track.

 

i think capping costs is a great idea, maybe this way we can see come actual competition instead of the usual Ferrari vs McLaren...

 

This is not the way to level the playing field. This isnt nascar, they arent supposed to run 38 cars 2 wide for 500 Miles. Its always been about who has had better drivers and machines. If they want every thing equal and costs to be cut then give them all the same car like in the iroc series.

 

I find it all amusing, F1 has reigned in technology severely since 1993 never the less the cars are significantly quicker than they were.

I further laugh thinking of why anyone would bother to postulate that this will level the playing field the huge money (past the $200 mil range) is well past the point of diminishing returns and even capping it at 150mil won't result in a paradigm shift in the top teams versus the others. If spending was the way to the top Toyota would be the current WDC and Honda wouldn't be the laughing stock of the paddock.

Further, $150 mil isn't that huge a restriction given the exclusions probably make the real budget in the $250 mil range.

Finally, I would submit that since the technology squeeze of the 90s and 00s we saw the era of most complete domination the sport has seen (the five seasons from 00-04) and also saw some of the closest season finishes as well (97, 99, 03 and 07).

The only reason F1 will die on the vine in the mid-term future is if teams leave the sport, lower costs can keep the small fish in and the big dogs with limited results (Honda and Toyota) in the game.