FOTA to setup breakaway series

The Formula One Teams' Association announced on Thursday night that it has decided to setup a breakaway championship and not go into Max Mosley's proposals to enter Formula One under the cost cap regulations.

Following a four-hour meeting at Renault's Enstone factory, the eight members of FOTA - Ferrari, McLaren, Renault, BMW Sauber, Toyota, Brawn, Red Bull Racing and Scuderia Toro Rosso - said they had grown frustrated with the FIA's stance against the organisation, and had no option but to create a series of their own.

The FOTA statement after the meeting read "The teams cannot continue to compromise on the fundamental values of the sport and have declined to alter their original conditional entries to the 2010 World Championship".

"These teams therefore have no alternative other than to commence the preparation for a new Championship which reflects the values of its participants and partners. This series will have transparent governance, one set of regulations, encourage more entrants and listen to the wishes of the fans, including offering lower prices for spectators worldwide, partners and other important stakeholders.

"The major drivers, stars, brands, sponsors, promoters and companies historically associated with the highest level of motorsport will all feature in this new series."

Earlier this week, Mosley urged the teams to join Formula One under the current regulations, after which they could decide on possible changes. The teams decided that this was too risky as they do not agree with the current regulation system in place for 2010.

As the team's were given until only today to decide on what to do, they have seen no other option but to break out of Formula One. In addition, they expressed their frustration with the way things are handled within the sport.

"Since the formation of FOTA last September the teams have worked together and sought to engage the FIA and commercial rights holder, to develop and improve the sport," said the statement.

"Unprecedented worldwide financial turmoil has inevitably placed great challenges before the F1 community. FOTA is proud that it has achieved the most substantial measures to reduce costs in the history of our sport."

"In particular the manufacturer teams have provided assistance to the independent teams, a number of which would probably not be in the sport today without the FOTA initiatives. The FOTA teams have further agreed upon a substantial voluntary cost reduction that provides a sustainable model for the future."

"Following these efforts all the teams have confirmed to the FIA and the commercial rights holder that they are willing to commit until the end of 2012."

"The FIA and the commercial rights holder have campaigned to divide FOTA."

"The wishes of the majority of the teams are ignored. Furthermore, tens of millions of dollars have been withheld from many teams by the commercial rights holder, going back as far as 2006. Despite this and the uncompromising environment, FOTA has genuinely sought compromise."

Now the FOTA seemingly rule out a possibly deal with the FIA, the governing body of F1 is now likely to add a lot of other new teams to its entry list for 2010.