2 May 2009

FIA sets cost cap for 2010

7:30 am on 2 May 2009

Formula One faces the risk of becoming a two-tier championship after motorsport's governing body announced teams accepting a strict cost cap would have more technical freedom in 2010 than those with unlimited budgets.

Three new teams will also be allowed to enter, potentially expanding the starting grid to 26 cars - six more than at present.

The optional spending cap has been set at $100 million, which is barely a quarter of what some teams have been spending.

The FIA says interest in the new business model for owning a formula one team has been extraordinarily high, and it's hoped all teams will ultimately accept the cap.

All teams want to cut costs but, despite outward unity, have different views on how best to go about it.

The deadline for teams to enter next year's championship is the 29th of this month.