FOTA Vs FIA

It’s a time of recession and like any other business, Formula 1 is trying to reduce the cost of the sport. The FIA came up with the proposal to apply a spending limit of 45 Million Euros for the teams next year. However, the FOTA (Formula One Teams Association) rejected this ruling stating that most teams would unable to comply with the budget. Teams like Ferrari spend nearly 10 times the amount of that budget in a single year in Formula One. By cutting 90% of their cost, Ferrari and the other teams argue that they will unable to research any component to develop the construction of the car. Formula One is the pinnacle of motorsport racing and this sport has led to the discovery of many innovations that have been applied to road cars. If the cap on spending limit is enforced, most team will not be able to apply their resources to further develop their car. Expect the FOTA to win this contest for scraping this ruling for the next year of Formula One.