FIA to impose cost-cutting rules

Motorsport's world governing body will force teams to cut costs to ensure Formula One's future beyond 2007 when the ruling Concorde Agreement ends. FIA president Max Mosley and the teams failed to agree a cost-cutting plan, prompting the FIA to take action. The FIA said in a statement: "We are reviewing the draft 2008 regulations to eliminate unnecessary expenditure.

"New teams intending to enter in 2008 have made it clear that they can do so only if costs are greatly reduced." Mosley and the teams are agreed that the sport cannot sustain its current level of expenditure. But just how to cut costs while ensuring safety, technological and entertainment standards remain high has been a major sticking point. (BBC Sport)

More cost slashing? Is there any report to show that the last two years of cost cutting measures shows any reliazed value and meet the objectives? The recent Minardi and Sauber sales does reinforce Max's point but it seems that market forces could proof too much for these measures. Have the level of race entertainment in F1 handicapped by this actions? Time can only tell, but gut feeling says it has.