As I mentioned a couple of days ago, Ferrari have raised eyebrows by choosing to speak the truth about the new teams in Formula 1:

This is the outcome: two teams will limp into the start of the championship, a third is being pushed into the ring by an invisible hand – you can be sure it is not the hand of Adam Smith – and, as for the fourth, well, you would do better to call on Missing Persons to locate it.

This week, that fourth team — USF1 — finally threw in the towel, after weeks (indeed, months) of speculation. And this evening they have been officially removed from the entry list. But I’ll discuss USF1 in further detail later.

However, this news once again shines the spotlight on the new teams, and the FIA’s process for selecting them. Right from the beginning there was controversy surrounding some of the choices. There is also the fact that new entrants were seemingly forced to use Cosworth engines.

It is worth remembering that there were at least two highly credible entries that were rejected by the FIA, to the surprise of many. David Richards and his Prodrive operation has been looking at entering F1 for years, and indeed had a slot on the 2008 grid until the future of customer cars was thrown into doubt. Lola were another highly credible entry with the ability to field a strong car.

So, what’s going on with the new teams? In this short series of articles I will take a brief look at the five main protagonists — Lotus and Virgin (the good side of the process), USF1 and Campos (the bad side) and Stefan (the ugly side).

The good side of the process

The Lotus position: last?

Lotus driver Jarno Trulli openly admits that the team expects to turn up at Bahrain four seconds off the pace. And yesterday Heikki Kovalainen back-pedalled from comments attributed to him that this year’s Lotus is worse than the Minardi he tested in 2003. The Finn claims the comments have been taken out of context.

Nonetheless, for my money the Lotus team has good long-term prospects. The jury is out on Mike Gascoyne’s abilities as a technical director. He is well regarded and appears to do a good job, but critics point out that he has never produced a World Championship-winning car.

Lotus are at pains to point out that they have had just five months to create this F1 car. That is nowhere near long enough to produce a competitive package. In the long term, they could be headed for a respectable role in the midfield.

The driver line-up of Jarno Trulli and Heikki Kovalainen is unadventurous, but at least it is credible. Trulli and Kovalainen have both won just one race each, and neither is particularly convincing during the race. But at least they are two established and experienced drivers.

Virgin’s CFD gamble

Virgin — the Richard Branson-backed F1 entry of Manor which has been highly successful in lower formulae — has taken a gamble by exclusively using CFD to design the car, without ever having put the car in a wind tunnel. The car has been blighted by several reliability issues, while typically lapping five or six seconds off the pace. If testing form is anything to go by, there is little for the team to be optimistic about.

On the plus side, they have a credible driver pairing in the former Toyota driver Timo Glock and experienced GP2 racer Lucas di Grassi. Perhaps more important, given the current climate, is the fact that the team appears to have been highly successful in attracting sponsorship. I guess sponsors are magnetically attracted to the golden Virgin brand.

Lotus and Virgin are the two teams that are described by Ferrari as “limping” into the start of the championship. That is the best side of the new teams. The other two new teams, Campos and USF1, have both teetered on the brink of collapse. But that is for the next article…

My previous post was a more-or-less immediate reaction to the FIA’s 2010 entry list. I have allowed the dust to settle (sort of) over the weekend and see what the fallout was, and I now have some further thoughts.

Of the 25-or-so teams that are angling for some sort of F1 slot next season, only a maximum of five will be happy with the situation as things stand. It goes without saying that the three new teams that have been guaranteed a slot — USF1, Campos and Manor — will be delighted. Williams will also be content, having been the first of the Fota teams to jump ship.

Despite saying friendly words about Fota’s cause, Frank Williams has made it clear that being part of a championship with “FIA” in the title is of paramount importance to his team. Williams have been close to the FIA for years, having been the second team to sign a deal with the FIA to leave GPWC in 2005. Williams are also grateful for the FIA’s stance on customer cars, which mysteriously changed at some point during the past couple of years (much to the frustration of Red Bull). Williams have also designed the cars for Max Mosley’s vanity project, Formula Two. Moreover, Williams CEO Adam Parr is said to have a close relationship with Max Mosley.

Force India are also committed to the FIA’s side, but they seem to be a lot more grudging about it than Williams are. Vijay Mallya cites vague commercial reasons for his decision to jump ship from Fota. Many have noted that Force India must race in 2010 at all costs because it exists only to race, whereas the manufacturers exist to sell road cars. But Vijay Mallya won’t exactly starve to death if he exits F1. He is in F1 to showcase his other businesses, just as the manufacturers are. Sure, Force India F1 Team would cease to exist, but so to would Renault F1 Team if Renault pulled out, and just as Honda Racing F1 Team ceased to be when Honda pulled out. The cases seem identical to me.

Meanwhile, those aspiring new teams who have not been placed on the entry list have been left with a bitter taste in their mouths. It seems pretty clear now that Max Mosley is banking on some of the existing teams not being around by next season. There is no way that Prodrive and Lola would have been refused a slot otherwise. They — along with other teams — have instead been placed on a “reserve list”, a queue of teams waiting for a slot to become vacant.

You get the sense that Prodrive and Lola are not to keen on being used as political pawns like this. They wanted a fuss-free entry into the 2010 season, but obviously forgot that this involves dealing with the FIA and its vindictive style of operating.

Lola in particular have been spitting feathers. They aren’t keen on being messed around, and are considering pulling the plug on their F1 project before the FIA get another chance to play games with them. Furthermore, Lola boss Martin Birrane has criticised the standard of the three new entries, saying: “one of three that has been chosen is worthy in my view. They will have a proper car. The other two – who knows?”

That sentiment was very closely echoed by Epsilon Euskadi’s Joan Villadelprat who also turned his nose up at the FIA’s vision of F1 2010-style: “I’m a bit surprised because I thought we were fighting against Aston Martin, and Lola, and companies with a pedigree, if you will.” The implication, of course, being that the new teams that have been guaranteed a slot do not have a pedigree.

The FIA may think that new teams will be enticed by a budget cap. But given these grumbles about the standard of the teams currently set to take part this season, they were rather expecting to be competing against the big names with world-famous brands like Ferrari and Aston Martin (manufacturer brands), not a couple of F3 teams.

Another entrant, which is said to be strong by those in the know, has gone as far as to explicitly state that the new teams have been used as pawns. N.Technology’s Mauro Spisz said: “The applications have been used by the Federation as pawns to move in the fight against the teams… We are victims of their war.”

Moreover, N.Technology appear to have been victims of the FIA’s well-known gross mismanagement, alleging that their application was not properly processed, with documents being lost. This would not be a major surprise. The FIA is well-known for being an incompetent organisation. Most famously, it once inadvertently revealed sensitive information about Ferrari and McLaren’s cars due to its own techno-incompetence.

If these strong teams are to enter F1, existing teams must leave. The FIA is banking on it. At the current rate, that actually seems like a fair assumption — though probably only because Mosley himself seems intent on driving them out.

In fairness, people talk a lot about the rumours that both Renault and Toyota are on the brink of exiting F1 anyway. From time to time, it is also said (even by Mario Theissen himself) that BMW may pull out. These three teams are probably the most disposable to F1, and I find it very interesting that it is these three very manufacturers whom the FIA cite in one of its press releases today (I will cover today’s developments in more detail in a separate article). All of these teams are peripheral players in this year’s Championship, and none has a particularly strong pedigree. But to lose all three in one year would be careless.

Renault have won the Championship twice in recent years, but it would not be unlike them to leave the sport. Indeed, with the famously motorsport-phobic Carlos Ghosn in charge of Renault, in a way it’s a surprise that they have not pulled out before.

I could easily imagine the Renault team surviving in one form or another though without the political crisis. The team’s history can be traced back to 1981, when it was Toleman. It became Benetton in 1986 before being bought by Renault in 2000. In this sense, the team has one of the richest histories in the sport, which stretches to half of Formula 1’s history.

For much of the team’s life, the team has rather successfully been run by Flavio Briatore. It is not outside the realms of possibility that, should Renault decide to pull the plug, Briatore could buy the team in an emergency measure and run it as a privateer entry, Brawn-style. But given his acrimonious relationship with the FIA (which is ironic given that he works with Bernie Ecclestone on other business endeavours), that now seems like a distant possibility.

Of the five teams with asterisks next to them on the entry list, McLaren and Brawn are the ones that the FIA cannot afford to lose. McLaren must be kept on board because of their history in the sport, which is rivalled by no-one’s except Ferrari’s. Meanwhile, to lose Brawn — who will almost certainly be World Champions this year — would be a major disaster for the FIA, and would only serve to underline the point that the new teams cannot compete with the best in F1 on merit.

In a way, then, McLaren and Brawn hold the aces. Interestingly, both are a strange kind of beast that is neither privateer nor manufacturer. This gives them a different perspective to the Renault / Toyota / BMW triumvirate — but it also distances them from being enticed by gimmicky budget cap proposals. Brawn could be seen as a full privateer from next season onwards. But the FIA must keep Mercedes happy to keep McLaren on side. Interestingly, Mercedes also plays a major role in Brawn’s success.

Therefore, as much as it (apparently) wants to drive the manufacturers out of the sport, Mercedes is ostensibly the one company which the FIA can’t afford to mess around. But, McLaren-Mercedes has been successfully neutered by the umpteenth high-profile hauling over the coals by the FIA. The FIA therefore have the whip hand, and Mercedes may be happier to defer to the FIA’s will than it otherwise would have been. Funny how it works out like that, isn’t it?

By now, it is abundantly clear that last week’s publication of the entry list was not designed to clear up the situation. Every single line in that publication was designed to wind someone up. It’s the way Max Mosley does his business: personality politics, vindictiveness and grandstanding. He clearly gets a thrill out of putting people in painful situations.

This morning the FIA has published the entry list for the 2010 Formula 1 season. It was widely anticipated to be a huge news story, and the entry list certainly raises a lot of questions.

The first thing to note is that all ten currently existing teams are on the list in some form or another. Five of the Fota-aligned teams are at the bottom of the list and have asterisks next to their entries. Conditions are still attached to their entries, so their participation in the 2010 season depends on how talks between Fota and the FIA proceed.

There is a deadline of 19 June for the situation to be resolved. That will no doubt be another big news day as the FIA will have a few extra teams up its sleeve ready to take the place should any Fota teams pull out.

Provocatively, the FIA has entered three of the Fota teams — Ferrari, Red Bull and Toro Rosso — and listed them as unconditional entries. These three teams all signed agreements with the FIA and FOM back in 2005 — the last time a breakaway was on the cards. Ferrari feel that its agreements with the FIA have been broken already, therefore it does not have an obligation to enter in 2010. Ferrari have reiterated that they have no intention of participating in the 2010 season unless its conditions are met.

Meanwhile, Red Bull feel that the FIA has reneged on its assurances that customer cars would be allowed. This is a matter upon which Red Bull’s agreement was apparently based. Red Bull have made clear that they have no intention of taking part as either Red Bull or Toro Rosso as things stand.

No matter what contracts have been signed by whom, you do have to wonder exactly how the FIA intends on forcing teams to participate when they have absolutely no intention of doing so. What is to stop Ferrari or Red Bull from competing half-heartedly in protest, sending out underdeveloped cars and a small team who are uninterested in taking part and fail to qualify, or retire after lap 1?

It wouldn’t exactly do much good for Formula 1’s image. I guess the FIA are banking that such a stunt would be bad for the image of Ferrari and Red Bull too, which would put them off doing it.

The most uncontroversial element of the entry list is the inclusion of Williams and Force India. Both teams were recently “expelled” from Fota as they felt obliged to submit unconditional entries due to previous commercial agreements.

The three new teams are USF1, Campos and Manor. This is a surprise to me. I — and I think most others — expected the three teams to be USF1, Prodrive and Lola.

USF1 were always going to be a dead cert. They had announced that they would enter the 2010 season even before there was a suggestion of a budget cap being in place. Indeed, the team has shrugged its shoulders over the idea of a budget cap. It is perfectly content to participate without a budget cap, which rather undermines Max Mosley’s contention that no new teams will enter without a budget cap.

Campos will probably be a solid operation. The team will be headed up by former Formula 1 driver Adrián Campos, who has been a successful team manager in lower formulae. The original Campos Motorsport won the first three seasons of the precursor to World Series by Renault, winning the championship with Fernando Alonso in 1999. In later years, Campos concentrated on GP2 and became one of the best teams on the grid, winning the 2008 Teams’ Championship. Adrián Campos sold that team which is now known as Addax.

Manor is an alliance between Manor Motorsport and Nick Wirth, two solid names. Nick Wirth was a major force behind Simtek. When the team collapsed, he went on to work at Benetton.

Manor Motorsport has a strong pedigree in lower formulae, having run successful British Formula Renault, British Formula 3 and F3 Euroseries operations. Its Formula Renault team is probably most famous for having run Kimi Räikkönen in the year before the Finn took the unbelievable leap all the way up to a full F1 race drive. It also housed Lewis Hamilton when he won the British Formula Renault championship.

All three of these new teams are pencilled in to run with Cosworth engines, although James Allen believes that USF1 is considering switching to Toyota. The use of Cosworth engines is no surprise. Max Mosley’s threatened standardised engine was the Cosworth lump, and their engine which was used by Williams in 2006 is more-or-less up to date with the current regulations.

I find it highly surprising that Prodrive have not been given the nod. The last time the FIA invited new teams to enter F1, Prodrive was the team that succeeded in gaining the place. However, when the FIA decided to ban customer cars, Prodrive were unable to take that slot which has remained vacant ever since. David Richards knows what he is doing, and had a long-term aim to bring the Aston Martin brand to F1. It seemed to be everything the FIA was wanting, but seemingly that is not the case.

Lola also must have felt pretty confident about getting an entry. Although their last foray into F1 in 1997 was an unmitigated disaster, there were commercial reasons behind it and there was no reason to suggest that they would repeat the mistake. Lola is a classic name which fans of motorsport recognise. And unlike ghostly entries using the names “Brabham”, “March” and “Lotus”, this classic name is the real deal.

It wouldn’t surprise me in the slightest if Prodrive and Lola are options for the FIA to fall back on in case talks with Fota fail. The ever-present threat that a manufacturer may pull out without warning is also there.

Another notable aspect of the entry is that Red Bull, Toro Rosso and Brawn are all currently without engine deals. But with the manufacturers threatening to jump ship, it probably doesn’t mean much anyway. But it does add further credibility to the idea that Red Bull is angling for Mercedes engines for next season.

The Formula 1 news has been dominated by political activity of late. I have struggled to bring myself to write about it, but today’s events seem like a good stage to provide an overview of where things stand.

This business with Ferrari taking the FIA to court over a veto is very interesting. Ostensibly the loss of the court case is bad news for Ferrari, but in fact their point has been proven. The court did confirm that Ferrari do have such a veto — just that they have failed to play their card correctly.

What this has conveniently done, though, is proved the point that the FIA simply are not to be trusted in this sort of situation. This technical veto — along with a host of financial and sporting perks — was given to Ferrari as a reward for jumping into bed with the FIA the last time the governing body’s power was put into question. GPWC (later GPMA) was an alliance of some of F1’s biggest names. It was essentially a bargaining tool for the teams not unlike today’s Fota. Ferrari was a major player in it — until the FIA lured them away with bribes. With Ferrari gone, GPMA was toothless and little was heard of it ever again.

This time, Ferrari aren’t for turning. The threat to the FIA’s power is therefore much greater this time round. So the FIA has preoccupied itself with looking for ways to either break up or undermine Fota. That is why they have this sudden obsession with new teams, even though there have been vacancies on the grid for over ten years. I seriously doubt we’d be hearing about how vital it is to attract new teams were it not for Fota. By doing whatever they can to bring in new teams, the FIA can ensure that there will no longer be unanimity among the teams.

After all, the FIA does not really have much else going for it. Participants, fans, media commentators and other onlookers have all completely lost faith in the FIA as it brings in ever-dafter regulations that lack any cohesion. For just one example, they will constantly bang on about cost cutting, then force teams to incur further costs by radically changing the regulations periodically.

Moreover, the FIA constantly fail to meet their own regulations, such as when earlier this year they attempted to change the sporting regulations within days of the season starting without first consulting the teams. Nor can the FIA administrate the sport in an even-handed way, as has been patently demonstrated by countless unfathomable stewards’ decisions over the past few seasons. The FIA is also wholly inadequate at formulating or policing the technical regulations, as is apparent with the completely botched introduction of kers and their inability to simply tell anyone if the double deck diffuser was legal.

Earlier this year Fota put forward a measured set of proposals that were based on actual market research which was conducted in an open and transparent manner. By contrast, Max Mosley just plucks new rules out of his freshly spanked arse. The FIA changes the regulations willy-nilly, out of the blue, for no apparent reason, without consulting anyone. The views of the teams, drivers, fans and the wider industry all count for nothing as far as the FIA is concerned.

This is the nub of the matter really. As has now become clear, the budget cap controversy was merely a conduit for a larger battle to begin — a battle over the governance of the sport. Do we want Formula 1 to continue to be driven into the ground by a frustrated politician who has no interest in consulting the people who really matter to the sport? Or would we prefer a future where fans and teams have a say, and where regulation changes can be measured and predictable? Well, I know whose side I’m on.

While people may scoff at the apparent arrogance of Ferrari’s recent statements, they do have a point. As readers will know, I am no Ferrari fan. But there is no doubt that this brand carries a lot of history, a lot of status, a lot of respect, a hell of a lot of fans and money by the bucket load. Arguably, the Ferrari brand is much more famous than the Formula 1 brand.

So Ferrari’s point about the calibre of the supposed new teams is bang on in my view. Make no mistake, the vast majority of these are teams that under normal circumstances would not be able to even consider entering F1, with an F1-standard car at an F1-standard budget. It is feasible only with the FIA promising to skew the rules in their favour — just as they skewed the rules in Ferrari’s favour back in 2005. This sort of crap has no place in a “sport” in the 21st century.

Privateer teams may be romantic, and I would love to see decent private teams to be able to compete at an F1 standard on merit, just as Brawn and Williams do today. But F1 is supposed to be the pinnacle of motorsport. And though some of the proposed new teams are accomplished enough at certain levels, few if any could claim to be on the cusp of being at F1 standard in normal circumstances.

As Joe Saward put it, it beggars belief that Max Mosley would think that it would be worth trading names like Ferrari, Toyota, Renault, BMW and potentially Mercedes for names like Wirth Research, Epsilon Euskadi, RML, Formtech, Campos and so on. Ask Max Mosley’s precious “man in the pub” about any of the names from the first list, and their eyes will light up in recognition. Asking about names from the second list would elicit a nonplussed response.

A grid full of teams like this, and with none of the historic and famous names that mean so much to people, would be an empty F1 indeed. It could be a return to the bad old days of the late 1980s and early 1990s, when the grid was full of half-arsed operations which polluted the field and acted as mobile chicanes. The FIA went too far in its efforts to get rid of these teams in the mid-1990s. Now it seems happy enough to go too far back the other way.

Max Mosley’s case seems utterly weak. He should know that too, because the last time he threatened the teams by forcing them to enter at short notice, the list of “new teams” was similarly long. Of these teams, one — Prodrive — was given the nod. It never materialised because the FIA decided to forego the biggest opportunity to cut costs they could ever ask for by making customer cars illegal.

As before, these new teams look like paper tigers. Yet Max Mosley is hinging the future of the sport on them because he finds it more palatable than relinquishing any of his power.

Today the teams are all meeting in Maranello to discuss their response to Max Mosley’s calls for yet more cost-cutting in F1.

In a letter (PDF link) sent to each of the teams earlier this month, Max Mosley said:

Formula One is becoming unsustainable. The major manufacturers are currently employing up to 1000 people to put two cars on the grid. This is clearly unacceptable at a time when all these companies are facing difficult market conditions.

But it makes me wonder quite what qualifies Max Mosley to declare F1 “unsustainable”. I can’t help but notice a glaring hole in Mosley’s argument.

A central pillar of our economic system is the idea that individuals and firms are able to decide for themselves how best to use their resources. After all, the individuals and firms (in this case the F1 teams) have all the necessary information at their fingertips. If Formula 1 is sustainable for a team, that team enters. If it is unsustainable for a team, it does not enter. Simple as that.

If an F1 team finds it to its own advantage to employ 1,000 people to put two cars on the grid, so be it. That is a fact of life. If the teams really feel a need to cut costs, they will. It. Is. That. Simple. The idea that people make these decisions for themselves is a central pillar of liberal society.

Meanwhile Max Mosley, the head of the governing body, is sitting in an ivory tower and has seemingly just decided that he knows better than the teams. Despite the fact that he has absolutely no experience and no knowledge whatsoever of what it is like to run an F1 team in 2008. Sure, he was heavily involved in March — but that was over thirty years ago, when F1 was a very different world indeed.

To underline just how little information Max Mosley has on what it takes to run an F1 team, think back to his proposed budget cap. That was apparently met with some mirth among the teams. Flavio Briatore was particularly taken aback:

I already pay 40 per cent less than the cap. If I want to keep to the limit then I need to spend more. It’s nonsense.

So here is the situation. We have ten parties that find it sustainable to enter F1. We have one party that thinks it is not sustainable, and that is the party with the least amount of information on it.

Sure, there could and perhaps should have been twelve teams on the grid this year. But let us not forget that the reason the smaller teams left is because they were not given a suitable guarantee that customer cars would be allowed. And who is responsible for that? Oh yes, Max Mosley.

Right there, we had the perfect opportunity for costs to be cut in F1. But Max Mosley failed to let it happen. I can only conclude that he is not actually interested in cutting costs. This adds yet further weight to the suspicion that the FIA will use the “cost cutting” explanation to justify any of their mad schemes for the future of F1. “Cost cutting” is the back door through which Max Mosley’s endless vanity projects are shoved through.