FIA set to introduce budget caps

It has been reported that further to discussions earlier in the month, the FIA will be introducing budget caps into Formula 1 at the start of the 2009 season. According to motor sport magazine Autosport, FIA president Max Mosley has sent a letter to all team bosses outlining the plans. Areas which will fall outside of the cap include engine costs, marketing, promotion and team principal wages.

On January 31st, Tony Purnell, technical advisor to the FIA, will meet with financial representatives from each of the teams in Paris to try and decide on the budget figure for 2009, and possibly even 2010 and 2011.

A Financial Working Group will then be setup to create the regulations before June 2008. Should significant progress with the budget caps not be made by this point, other cost-cutting measures such as limiting wind tunnel time will be introduced instead.