Ecclestone proposes budget cap be dropped

A day after eight teams announced that they would not compete in the FIA Formula One World Championship next season but form their own independent series, commercial rights CEO Bernie Ecclestone has now said that major teams should not be subject to a budget cap next year.

While saying that Max Mosley has done ‘a lot of good things’ for Formula One, the F1 Chief Executive's new admission undermines the FIA President's position but could potentially end the breakaway threat. Ecclestone however has no power to dictate the rules to the FIA.

"I say, provided they confirm they will be in the championship for five years, they can spend what they like," the 78-year-old said at Silverstone on Saturday.

Ecclestone did not say how dropping the budget cap provisions would affect the small teams that have signed up for 2010, including new entrants Campos, US F1 and Manor. But clearly the Briton is most concerned about the big names including Ferrari and McLaren, who are looking to establish a rival series.

"I have some sympathy for the teams.

Nobody wants to be told how they can spend their money," Ecclestone told the BBC.

The international media overnight reacted with concern that the crisis could irreparably damage or even destroy F1.

"It's an ugly fight, like an aristocratic family arguing about silver cutlery," said Italy's La Gazzetta dello Sport.

The French daily Aujourd'hui added: "War has broken out between the FIA and FOTA, and Formula One will pay for it."

And Austria's Der Standard said: "So far neither Max Mosley nor Luca di Montezemolo have lost face, but the loss will be on both sides if Formula One disintegrates."

F1 : Ecclestone proposes budget cap be dropped - Ecclestone - F1-Live.com