Formula 1 in Turmoil: FIA vs. Manufacturers: Irreconcilable Differences?

The Federation Internationale de l'Automobile published its list Friday of 13 teams that FIA President Max Mosley has accepted to compete during the 2010 Formula 1 World Championship.

Problems immediately arose with three teams - Scuderia Ferrari Marlboro, Red Bull Racing and Scuderia Toro Rosso - that had been accepted unconditionally despite having submitted conditional entries. All three immediately issued press releases reiterating that their entries did indeed have conditions attached.

Those three teams plus five other conditional entries - McLaren Mercedes, BMW Sauber, Renault, Toyota and Brawn - comprise the membership of FOTA (Formula One Teams Association formed in 2008). That organization has consistently resisted the implementation of the FIA's 2010 rules for F1 that include a $60m annual budget cap which if not complied with would result in draconian technical restrictions - the so-called "two-tier" system with the big-money teams technologically handicapped.

One avenue of compromise might be a negotiated phasing in of a budget cap. Unfortunately, the playing field has degenerated into a legalese scrum. Ferrari contends that its agreement with the FIA and FOM - commercial rights holder Bernie Ecclestone's Formula One Management - during the previous manufacturers' revolt (remember the Grand Prix Manufacturers' Association) gave that team final say-so over new regulations. Also Ferrari receives monetary compensation from the FOM for their loyalty during the GPMA unpleasantness. In introducing the 2010 technical regulations, Mosley ignored Ferrari's input. Now Ferrari is threatening to sue the FIA / FOM for breach of contract with Ecclestone in turn threatening to sue Ferrari for repayment of the "GPMA bribe" money plus billions on general principles.

This affair smacks of the CART and IRL war in the mid-90s that ultimately devalued U.S. open-wheel racing to the point of commercial irrelevance. It's a slippery slope with next week being most critical to the future of Formula 1.

Mosley has given the five teams accepted as conditional entries until next Friday, June 19, to resolve their differences with the FIA or be dropped from the 2010 field. As Ferrari, Red Bull and Toro Rosso have cast their lot with FOTA, those three are expected to drop from the 2010 entry voluntarily. That will leave current organizations AT&T Williams F1 and Force India F1 Team with three new teams - Campos Grand Prix, Manor Grand Prix and Team US F1 - as the only certain entries next season. Spaniard Adrian Campos, an early mentor of Fernando Alonso, is converting his GP2 operation to F1. Nick Wirth has partnered with F3 team owner John Booth to form Manor GP, while Ken Anderson and Peter Windsor have formed the American entry.

Two other legitimate entries are in the wings: David Richards' ProDrive and Martin Birrane's Lola. That would put 14 cars in the field with the gates standing open for another 12.

The question is - what would FOTA do? With the auto industry in such a hole, would the automakers currently involved in F1 be able to make the capital investment in a Formula 1 spin-off for 2010? From the organizational/deal-making standpoint, nothing short of the second coming of Mr. Ecclestone could pull that off on such short notice.

The consensus is that the manufacturers may switch to sports car racing where there actually are more opportunities for technology transfer than currently exist in Formula 1.

Boardrooms will be buzzing this next week. Mosley is dug in. Ecclestone has his red up. Ferrari is indignant. Next Friday is D-Day.

Watch this space.