F1 peace could gain stability as FIA announces imminent signing of new Concorde Agreement

F1 peace near as new Concorde Agreement in sight

BUDAPEST, Hungary — A new Concorde Agreement, the document that governs Formula One, could be signed by next week, which could stabilize F1’s fragile peace.

F1’s governing body said Friday that its World Motor Sports Council had received the new document. FIA said it would come into effect “on receipt of confirmation that a satisfactory cost-reduction agreement is in place.”

All 13 teams registered for next season’s championship negotiated the document, FIA said in the statement.

FIA president Max Mosley has been looking to cut costs since Honda’s exit in December, but his proposal to slash budgets to $60 million by 2010 has been criticized by most teams as being too difficult.

The Formula One Teams Association — made up of eight leading teams, including Ferrari and McLaren — had threatened to form a breakaway series. Mosley’s decision not to stay on when his term expires in October appeared to appease the teams.

The teams have, in principle, agreed to carry over the 2009 rules to 2010 and come up with a budget cap for the following seasons.

The Concorde Agreement also says how much money teams will receive from TV rights on top of setting the rules.