FIA raises budget cap figure to 40m

Apr.30 (GMM) The figure for a voluntary budget cap in formula one next year has been increased by 10 million pounds sterling to 40m.

Announced on Thursday, it was ratified by the World Motor Sport Council in Paris a day earlier, while at the same time the maximum number of teams was increased by 1 to 13 for 2010.

As the global recession bites, Formula One Management has also offered a US $10m welcome payment for new teams, plus the promise of free chassis transportation and 20 air tickets for flyaway races.

Moreover, existing manufacturer-backed teams are being enticed to join the budget capping with the exclusion of engine costs. Marketing and driver costs will also not be included in the cap, the FIA confirmed in a statement.

An entry list for 2010, potentially featuring a full grid of 26 cars, will be published by the Paris body in June.

The big teams do not have to sign up for the cap, but their engines will be rev-limited, the test ban will continue to apply for them, and their cars will not be allowed to feature moveable wings.

"The FIA believes that cost capping will prove attractive, and it hopes that over time all teams will join," the FIA said.

"So far, interest has been extraordinarily high from both existing teams and potential new entrants."