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1
THE FIA FORMULA ONE WORLD CHAMPIONSHIP
Note on the application of existing rules in 2003
and new rules for 2004, 2005 and 2006
Last October the teams currently competing in the FIA Formula One World
Championship rejected all the FIAЎЇs suggestions to reduce costs.
Subsequently, at their meeting on 4 December, they failed themselves to
agree any significant cost-cutting proposals for 2003 or 2004. Urgent
action is needed because costs continue to rise while income is falling.
THE PROBLEM
Two Formula One teams have disappeared in the past twelve months.
Now that only ten teams are left, those remaining are obliged by the
Concorde Agreement to finance and run two extra cars for each additional
team which fails to attend an Event. By no means all of the teams would
be able to do this. There is an obvious danger that unless something is
done, the FIA Formula One World Championship will start to collapse
during the next twelve months into a spiral of law suits and recrimination.
THE FIAЎЇS ROLE
As the independent regulator, the FIA would not normally become involved
in the commercial difficulties of Formula One teams. But the teams and
others involved in the Championship have been unable to find a solution.
Responsibility therefore devolves upon the governing body. The FIA must
act, because serious problems with the Formula One World Championship
would affect motor sport at all levels throughout the world.
CHANGING THE RULES
But the FIA is constrained by the Concorde Agreement. It cannot change
any rule for 2003 without the unanimous agreement of the teams. For
2004 it can change sporting rules at any time before 31 October 2003
(subject to an 18:8 majority in the Formula One Commission), but cannot
change technical rules without unanimous agreement. For 2005 it can
again change sporting rules, this time until 31 October 2004. But technical
(although not engine or drive train) regulations can be changed only for
2005 (with the same 18:8 majority plus an 80% majority in the Technical
Working Group) and then only if this is done before 1 January 2004.
2
ENFORCING THE RULES
It is, however, open to the FIA to enforce the existing rules more
rigorously. Having regard to the current difficulties facing its Formula One
World Championship, the FIA intends to do so on a zero-tolerance basis
wherever this will result in significant cost savings without diminishing the
sporting contest. Indeed some of what follows may improve the racing by
increasing the element of unpredictability. If the teams produce convincing
evidence that immediate strict enforcement will add to costs in a particular
area because of the proximity of the season, the FIA will grant a brief
temporary derogation, but only where genuine need is shown.
WASTED MONEY
Much of the money spent in the FIA Formula One World Championship is
wasted in the sense that it adds nothing to the enjoyment of the public. Yet
it is the public who ultimately pay the bills. Without a world-wide television
and media audience, neither team sponsors nor car manufacturers would
contribute to the costs of the Championship. The interests of their
shareholders require that they only invest in the hope of greater profits.
These profits come from the public.
SOME EXAMPLES
But vast sums are being spent on things which do not interest the public.
Whether an engine runs to 12,000, 16,000, or 20,000 rpm means nothing
to the television audience. Neither do they know, or care, who makes the
electronic control unit or the rear wishbone. The army of technicians using
sophisticated and very expensive telemetry to follow every quirk of the car
on computer screens, are hidden at the back of the pits. They are
concealed from a public who neither know nor care that they are there.
RACING SPOILT BY MONEY
And this expenditure is not just wasted. Still worse from a spectatorЎЇs point
of view, much of it actually detracts from the sporting contest. This is
because the purpose of much of the expenditure is to increase the
probability that at the end of qualifying, the fastest cars will be at the front
of the grid and will run reliably throughout the race. Everything being
equal, if the fastest car starts the race at the front, it will not be caught, still
less overtaken by the car behind. Add metronome-like reliability and
faultless handling and you have all the ingredients for a thoroughly boring
race.
3
CONTROLLING THE CAR MANUFACTURERS
The FIA cannot prevent the major car manufacturers spending very large
sums on developing engines for the Formula One World Championship. It
can, however, regulate the number of engines and other components each
team can consume at races. In this way the cost of going racing, as
opposed to development, can be minimised. The tighter the restrictions at
the races, the lower the cost of going racing. The racing budget is then a
smaller percentage of a manufacturerЎЇs total expenditure, making it easier
to support an additional team.
THE SOLUTION
By rigorously applying existing rules, the FIA intends to save the teams
and manufacturers a great deal of money. A probable side effect will be to
make the racing itself less predictable and thus more interesting. By
applying the rules firmly but equitably, the FIA will ensure that no team
suffers an unfair disadvantage. The best driver and the best car
constructor will still win their respective championships.
The rules in question and the effects of enforcing them are set out below.
References are to the 2003 FIA Formula One Sporting Regulations unless
otherwise stated. For convenience, the relevant regulations are
reproduced at the end of this note.
2003
1. Under Article 61, there will be a complete ban on:
(i) telemetry from car to pit;
(ii) telemetry from pit to car;
(iii) radio communication between driver and pit.
2. Under Article 70, only two cars will be scrutineered per team (subject
to the teamsЎЇ other obligations under the Concorde Agreement,
including but not limited to Clause 5.3.1).
3. Under Article 84e), spare cars will not be scrutineered (save in
exceptional circumstances as authorised by the stewards) and will
therefore not be used.
4
4. Under Article 71a), each car will be required to go into parc fermЁ¦
immediately after making its second qualifying run. All cars will be
released simultaneously from parc fermЁ¦ shortly before the start of the
race, when all checks on all cars will have been completed.1
5. Under Article 61, severe constraints will be placed upon electronic (as
opposed to driver) control of throttles, clutches, differentials and
engine actuators. This will mean that traction control, launch control
and fully automatic gear changing systems can no longer be used.
Each team must be able to demonstrate compliance without software
inspection (Article 2.6, FIA Formula One Technical Regulations as
amended for 2003 on proposal of the teams). If it can be shown that
immediate full compliance would, on balance, add to teamsЎЇ costs
because the start of the season is now so close, the FIA is prepared
to grant a derogation for all or part of the 2003 season. However,
from 2004 at the latest, the FIA will insist on full compliance with both
Article 61 and the above-mentioned Article 2.6 and rely solely on
physical inspection. In the absence of a satisfactory alternative
proposal by the teams, the FIA believes that this will necessitate the
use of standard electronic control units for both engine and drive train.
6. By way of clarification, the FIA confirms that teams which wish to do
so can share components. The teams are invited to agree
unanimously to delete the provision in Schedule III to the Concorde
Agreement which prevents a constructor using a component (other
than an engine or a gearbox) designed or manufactured by another
constructor. In default of such unanimous agreement, the FIA
confirms that provided a component is manufactured and designed by
a separate company or other third party, there is nothing to prevent
two different constructors using the same component(s) on their
respective cars.
7. The FIA has confirmed that the Friday morning session will be a
private test organised by the FIA together with the race promoter and
is not part of the Event. Participating teams will be free to do as they
wish, provided all safety precautions are observed and other
participating teams are not needlessly obstructed.
1 The FIA is prepared to discuss with the teams the possibility of releasing cars temporarily from parc
fermЁ¦ to run in free practice on race morning under Article 115 and allowing a brief (eg 30-minute)
supervised safety check on the cars immediately afterwards. However, any such release would be subject
to strict conditions agreed with the Technical Delegate, which would certainly exclude any work on the car
except essential repairs and safety checks.
5
(NB: the measures outlined above will reduce air freight costs in 2003
because fewer cars, fewer parts and less equipment will need to be
transported. Such costs will drop further in 2004, 2005 and 2006 with the
need to move fewer spare engines and major components. The need for
ever fewer personnel will also save on air tickets and hotel rooms.)
2004
The FIA Formula One Sporting and Technical Regulations will be applied
in 2004 in the same way as in 2003, subject to any changes in the light of
experience.
8. For the avoidance of doubt, the 2004 single-engine rule will not apply
to the Friday morning test session.
9. Standard electronic control units will be introduced (see 5 above)
unless the teams propose an alternative and equally satisfactory
method of proving the absence of driver aids, including traction
control, launch control and fully automatic gearboxes by
straightforward, physical inspection of components.
In addition, and subject to the necessary Formula One Commission vote
no later than 31 October 2003, the following changes will be made to the
FIA Formula One Sporting Regulations for 2004.
10. The FIA will invite the major manufacturers currently supplying
engines to teams competing in the Championship to ensure
collectively that all teams have competitive engines at a readily
affordable cost. In default of satisfactory and agreed arrangements,
the FIA reserves the right to introduce a change to the Sporting
Regulations to achieve this result. (NB: the savings to an engine
supplier by reason of the single-engine rule for 2004 will normally
exceed the costs of supplying a second team. This is because
development costs will have been met in supplying the first team
while, as a result of the new rule, the total number of engines supplied
to the first and second teams together in 2004 can be expected to be
less than the number supplied to the first team alone in 2003.)
11. After consultation with the teams, the FIA will prepare a list of major
components which, like the engine, may not be changed more than
once during a race weekend from 2004 onwards.
6
12. A standard FIA rear wing and sideplates will be fitted to all cars. Such
a wing would provide Ў°MonzaЎ± levels of downforce while generating
enough drag to give approximately Ў°BrazilЎ± levels of top speed. It will
not only save money, but also reduce speed in the fastest corners.
This will significantly improve safety.2
13. Standard brakes. The FIA will invite tenders to supply a single
standard braking system for all cars participating in the FIA Formula
One World Championship. The winner of the tender will supply the
same braking system to all teams. This will be the only system
allowed in the Championship. Any financial or other benefits of the
tender will go to the teams.
2005
Subject to the necessary Formula One Commission vote no later than 31
October 2004, the following changes will be made to the FIA Formula One
Sporting Regulations for 2005.
14. The single engine rule will be extended from one to two Events ЁC ie an
engine must last for two consecutive Events in the same year before
being changed. This will result in a further substantial reduction of
teamsЎЇ and engine suppliersЎЇ costs. It will also help to keep power
outputs within reasonable limits.
15. A further extension in minimum life for certain major components after
consultation with the teams.
16. In the light of experience, during 2004 it may be necessary to revise
the penalties to be applied in the event of a team being forced to
change an engine or a major component before this becomes
permissible under the relevant rule. The penalties must be sufficient
to deter systematic changes, but not so severe as to interfere
excessively with a teamЎЇs competitive position or to demotivate team
or driver.
2 This standard wing will also facilitate overtaking. The front wing will contribute less to the total
downforce of the car because it will have to balance the low-downforce, standard rear wing. As a result,
the loss of downforce caused by the wake of the car in front will be smaller. This will enable the car
behind to get closer to the car in front in a corner and make overtaking less difficult on the next straight.
7
2006
Subject to the necessary Formula One Commission vote no later than 31
October 2005, the following change will be made to the FIA Formula One
Sporting Regulations for 2006.
17. The single engine rule will be extended from two races to six races.
This will have a huge impact on the cost of supplying a team with
engines, but no effect on the sporting contest. It may also avoid the
need to change the engine regulations for 2008 in order to limit power
for safety reasons. Moreover, it will enable an engine supplier to
supply a third or even a fourth team at no greater cost than the 2004/5
programme (see 10 and 14 above), thus avoiding a crisis if the
number of major manufacturers (engine suppliers) decreases. Once
again, research and development costs are the same while race costs
are a straightforward function of engine life ЁC the longer the life of an
engine, the lower the cost of supplying a team with engines for a
seasonЎЇs racing. (NB: the claim that it costs more to develop an
engine to give maximum power for, say, 5000 km than for 500 km is
difficult to justify. The only difference is extra time on the dyno, which
represents a negligible proportion of the total cost of developing an
engine. Extra track testing time can be discounted, as this will also be
used for a teamЎЇs general chassis test programme. There is no
significant difference between research into the ability of a component
to resist maximum and very high stress for a short period or maximum
but slightly less stress for a longer period.)
FURTHER MEASURES
The above are measures which the FIA can implement by enforcing
existing rules or with a majority vote in the Formula One Commission.
However, there is one additional measure which could further substantially
reduce costs but which may require unanimous agreement, at least if it is
to be introduced within a reasonable time frame.
18. Restrictions on materials. The use of exotic materials is a significant
and increasing cost for competitors in the Championship. Limiting
materials according to physical characteristics has proved complex
and difficult to enforce. It can also lead to increased costs - the
aluminium-beryllium experience has shown that more money may be
spent seeking materials on the limit of permitted physical
characteristics than can be saved by eliminating a particular material
or family of materials. However, a list of permitted materials, all others
8
being prohibited, might work. Checks might rely on chemical analysis,
spectroscopy or similar methods. To be discussed with team and
industry experts.
ENGINE SUPPLY
Finally the requirement to supply engines to other teams (point 10 above)
may become problematic if the number of car manufacturers involved in
the FIA Formula One World Championship decreases significantly. In the
first instance we believe we will have overcome this problem by increasing
the life requirement of the engines ЁC the greater the number of races
between engine changes, the less onerous a requirement to supply more
than one team. However, at a certain point, even with six-race engines,
this could place an excessive burden on the remaining engine suppliers.
We would then have to enter into discussions with those concerned in
order to find a solution. In the most extreme case, however, a singlesource
engine supply might be the answer.
---------- Ўм ---------
15 January 2003
9
FORMULA ONE SPORTING REGULATIONS
Article 61
The driver must drive the car alone and unaided.
Article 70
No car may take part in the Event until it has been passed by the
scrutineers.
Article 71a)
The scrutineers may check the eligibility of a car or of a competitor at any
time during an Event.
Article 84e)
A competitor may use several cars for practice and the race provided that
they have been scrutineered in accordance with these Sporting
Regulations.
Article 115
Warm Up : a free practice session will take place on race day; it will last 30
minutes and start 4 hours and 30 minutes before the starting time of the
race.
FORMULA ONE TECHNICAL REGULATIONS
Article 2.6
It is the duty of each Competitor to satisfy the FIA technical delegate and
the Stewards of the Meeting that his automobile complies with these
regulations in their entirety at all times during an Event. The design of the
car, its components and systems shall, with the exception of safety
features, demonstrate their compliance with these regulations by means of
physical inspection of hardware or materials. No mechanical design may
rely upon software inspection as a means of ensuring its compliance.
(The underlined portion of this rule was added for 2003 on proposal of the
teams.)
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