Budget cap to be introduced from 2009

According to reports of our colleagues at autosport, Max Mosley confirmed that a budget cap is to be introduced in Formula One starting from 2009. Earlier this week, Mosley sent a letter to the team bosses to outline that plans for a budget cap are being put in motion after the approval of the teams during a meeting last week.

Autosport got to see the letter by the hand of Mosley. The letter would describe the details of the plans and confirms that areas falling outside the budget cap are engine costs, marketing and promotion, plus team principals' wages.

Mosley wrote: "Starting in 2009, there will be a cap on expenditure for all Formula One costs other than engines, drivers and expenditure exclusively for promotion and marketing."

"Because of the variety of arrangements, particularly shareholdings, team principals' remuneration will not be included in the cap."

On 31 January a meeting between Tony Purnell, technical advisor of the FIA, and the representatives of the teams will take place in Paris. This means that the meeting is on the same date as the launch presentation of Renault's R28 which will be held in Paris as well.