The Formula One Teams’ Association (FOTA) will officially call off its plans for a rival championship tomorrow after reaching a breakthrough deal with the FIA.

Following last-ditch talks between FIA president Max Mosley, FOTA chairman Luca di Montezemolo and F1 supremo Bernie Ecclestone, an agreement was reached that commits the teams to the sport until 2012.

FOTA members had been set to press ahead with breakaway plans in the meeting in Bologna tomorrow, but following its victory in getting the FIA and Ecclestone to agree to terms that keeps its eight members in F1, it will now rubber stamp final cost-cutting regulations for 2010 and call off its breakaway instead.

The deal between the FIA and FOTA was confirmed on Wednesday afternoon, when the FIA announced that its planned budget cap for 2010 had been scrapped, and instead FOTA-proposed cost-cutting regulations will be introduced.

In a bid to help new teams, technical assistance will be offered to Campos Meta, Manor Grand Prix and Team US F1 by major outfits.

The FIA statement said: “As part of this agreement, the teams will, within two years, reduce the costs of competing in the championship to the level of the early 1990s.

“The manufacturer teams have agreed to assist the new entries for 2010 by providing technical assistance.”

As part of the deal with FOTA, the teams’ association has agreed to recognise the FIA’s position as the sport’s governing body, adding that a new Concorde Agreement has been agreed in principle to keep all of the teams in F1 to 2012 and, upon re-negotiation, it is hoped beyond.

“The manufacturer teams have further agreed to the permanent and continuing role of the FIA as the sport’s governing body,” added the statement. “They have also committed to the commercial arrangements for the FIA Formula 1 World Championship until 2012 and have agreed to renegotiate and extend this contract before the end of that period.

“All teams will adhere to an upgraded version of the governance provisions of the 1998 Concorde Agreement.”

Furthermore, with it clear that FOTA is not trying to usurp the FIA’s authority, FIA president Max Mosley has agreed to not stand for re-election in October.

In addition, all 13 teams including the new Campos Meta, Manor Grand Prix and Team US F1 outfits will be on the grid next season. See the link for the official entry list:

http://www.autosport.com/news/report.php/id/76497

An agreement has been reached between Formula 1′s governing body and the teams to prevent a breakaway series, says FIA president Max Mosley.

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, Mosley has agreed not to stand for re-election as president.

“There will be no split. We have agreed to a reduction of costs,” added Mosley.

“There will be one F1 championship but the objective is to get back to the spending levels of the early 90s within two years.”

F1 surpremo Bernie Ecclestone added that he is “very happy common sense has prevailed”, following a meeting of 120 members of the FIA in Paris aimed at resolving the crisis.

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.

He hit out at what he described as “wholly unjustified criticism” of the FIA, adding: “It is for the FIA membership, and the FIA membership alone, to decide on its democratically elected leadership, not the motor industry and still less the individuals the industry employs to run its Formula 1 teams.”

However, it appears Mosley has now agreed to move aside when his fourth term as FIA president ends in October, saying: “I will not be up for re-election, now we have peace.”

Furthermore, writs that had been threatened against Ferrari and the other teams in the Formula 1 Teams Association (Fota) – 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 £40m budget cap would be imposed from next season – a plan that prompted a rebellion from eight teams, with Fota announcing on Thursday they were planning a rival series.

“It’s come as a bit of a surprise, given that Fota were planning to meet in Bologna on Thursday to discuss their plans for the breakaway championship,” reported BBC sports news correspondent James Munro from Paris.

“But what we got today after a meeting of World Motorsport Council was an impromptu press conference and Mosley began by saying there will be no split, there will be one championship.

“He said that over the course of the negotiations he had been able to secure guarantees from the teams who were threatening to get away that they would try to reign back the levels of their spending to the levels they were spending in the early 90s.

“It was him that had come up with the idea that next season all teams would have a budget cap of about £40m, but there has clearly been a trade-off as he has also agreed to do what he says was always the plan – stand down as president of the FIA this October.”

More on this story can be read via Autosport.com. Link: http://www.autosport.com/news/report.php/id/76495

http://www.telegraph.co.uk/sport/motorsport/formulaone/4516234/FIA-president-Max-Mosley-to-stand-for-re-election.html

His offer to stand down was made back when he was embroiled in the “Spanky-gate” affair in order to placate his critics and to give himself time to re-group.
As soon as he felt his grip on power was secure again over the winter he had changed his tune, thus mirroring what he did at the last FIA presidency election.

I really don’t think that the FOTA teams’ recent militancy (they also forced the withdrawal of the new scoring system in March) is a coincidence – if Max won’t go by himself , he’ll have to be cut down to size one way or another……..