As a result of the ongoing governance crisis in Formula One, the eight remaining teams of the Formula One Teams Association (FOTA) announced on June 18, 2009 that they had no choice but to form a breakaway championship series.[31]
The crisis originally formed around the proposed implementation of several radical changes to the 2010 regulations, most importantly the introduction of a £30 million budget cap (later revised to £40 million),[32] approved by the World Motor Sport Council (WMSC) on March 17.[31]
Under the proposed technical regulations, teams operating with the budget cap would be granted greater technical freedom, which included adjustable front and rear wings and an engine not subject to a rev limiter.[32]
The FOTA believed that allowing some teams to have such technical freedom would have created a ‘two-tier’ championship, and thus requested urgent talks with the FIA. Talks broke down resulting in four of the teams, Ferrari, Renault, Red Bull and Torro Rosso threatening not to sign on for the 2010 championship unless the rules were revised.[31]
FOTA and the FIA again met for talks which again broke down, causing Ferrari to launch legal action to prevent the regulations from being applied, claiming that a previously signed contract between themselves and the FIA gave them right to veto any new rules, a clause which they believe the FIA ignored. The injunction was rejected in French courts.[31]
On May 25, Williams broke ranks with FOTA by submitting an entry for the 2010 season and were subsequently suspended indefinitely, which brought the number of teams active in FOTA down to nine.[31]
On May 29, the remaining FOTA teams submited a joint, conditional entry which they state is only to be accepted if the proposed rules were amended to their preference. Seven days later, Force India revealed that they followed Williams and submitted an unconditional entry for the 2010 season and were also suspended.[31]
The FIA released the list of competing teams for the 2010 season on June 12. 2009 competitors were included with the addition of USGPE, Manor Grand Prix and Campos Grand Prix. The FIA recognized the conditional nature of five of the FOTA teams while automatically accepting the entries of Ferrari, Red Bull and Torro Rosso. The remaining conditional teams were given a week to submit unconditional entries.[33]
A day before the final submission deadline, FOTA announced that they were unified in creating a breakaway championship series due to the apparently irreconcilable differences between their views and those of the FIA.[31]
The FIA threatened legal action against the FOTA teams, claiming that they, and Ferrari in particular, had broken a signed contract to compete. It was estimated that the proposed lawsuit could be for as much as $1 billion.[34]
On June 21, Max Mosley decided that the FIA would not sue the teams, insisting instead that reconciliation was close.[35] Flavio Briatore denied the next day that a deal was close, insisting that FOTA was pressing on with their breakaway championship.[36]
On June 24, an agreement was reached between Formula One's governing body and the teams to prevent a breakaway series. It was agreed that the teams must cut spending to the level of the early 1990s within two years, however exact figures were not specified.[37]
However, shortly after this peace deal was reached on Wednesday, Max Mosley was reported as being 'furious' over remarks made by Luca Cordero di Montezemolo. Mosely, who clearly felt let down by the comments, later told the media that he was to 'leave his options open'.[38]
The statement, released by Luca Cordero di Montezemolo, described Max Mosley as a dictator, also mentioning that he had been forced out of office with Michel Boeri taking his place until a new leader was elected in October. Mosley described these statements as being false as well as 'grossly insulting to the 26 members of the World Motor Sport Council who have discussed and voted all the rules and procedures of Formula One since the 1980s, not to mention the representatives of the FIA's 122 countries who have democratically endorsed everything I and my World Motor Sport Council colleagues have done during the last 18 years'.[39]
No apology was issued by FOTA or Luca Cordero di Montezemolo, sparking speculation that Max Mosley will seek re-election in October which would plunge Formula One back into crisis. Mosley's agreement to step down at the conclusion of his term was one of the major factors resulting in the reconciliation of FOTA with Formula One.
On 8 July, the FOTA published a press release stating that they had been informed that they were not entered for the 2010 season.[40] An FIA press release, published on the same date and regarding the same meeting, said the FOTA representatives had walked out of the meeting.[41]
On August 1st, it was announced that the FIA had signed the new Concorde Agreement, bringing an end to the crisis and securing the sport's future until 2012[42].
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