25 Jun 2009

Agreement reached in F1 stand-off

5:52 am on 25 June 2009

An agreement has been reached between Formula 1's governing body and the teams to prevent a breakaway series.

The two parties had been engulfed in a bitter row over planned budgetary and technical changes for the 2010 season.

But it appears a resolution has now been found and, as part of the deal, Max Mosley has agreed not to stand for re-election as president of the FIA.

Ahead of the meeting, Mosley had insisted that he would not step down as part of any potential agreement and might even seek re-election as head of world motor sport.

Furthermore, writs that had been threatened against Ferrari and the other teams in the Formula One Team's Association - McLaren, BMW Sauber, Renault, Toyota, Red Bull Racing, Toro Rosso and Brawn GP - are likely to be shelved.

The agreement ends two months of wrangling since Mosley announced after a World Council meeting at the end of April that a voluntary 100 million dollar budget cap would be imposed from next season - a plan that prompted a rebellion from eight teams, with Fota announcing lastr week they were planning a rival series.

But the new agreement ends that threat, while still maintaining the "financial viability" of teams which had been targeted with the initial budgetary restrictions.

Mosley says there is no budget cap because costs will come down to the levels of early 1990s in two years - it's a different way of doing the same thing.

As part of the agreement, existing teams must help new outfits - Campos, US F1 and Manor - with their engines and chassis.