The FIA confirms a budget cap of 40 million pounds for 2010

The governing body of Formula 1, the FIA, announced today the introduction of a budget cap set at 40 million pounds sterling (44.6 million euros) starting from next season.

The FIA stated that teams deciding to operate under this cap will have more technical freedom regarding wings, engines, unlimited testing outside the regular season, and wind tunnel testing.

The body will establish a Cost Commission responsible for monitoring and enforcing this budget. A chairman and two commissioners will be appointed by the World Motor Sport Council (WMSC) for a three-year term. They will be responsible for ensuring that the teams comply with the regulations.

One of the commissioners must be a finance expert and the other must have a high level of knowledge in motorsport.

The initial figure mentioned was 30 million pounds but was revised upwards after consultation with the Formula 1 teams last week.

This budget ceiling, valid from January 1 to December 31, will cover all expenses for all teams with certain exceptions.

The most notable among them is that the cost of engines will not be included in the budget cap for 2010.

Also excluded from the budget cap are the entry fees for the championship, driver salaries, and fines and penalties imposed by the FIA. In fact, all elements that have no influence on performance on the track.

The Board of Directors also announced that the maximum number of single-seaters allowed to enter the championship will be 26, two more than before.