Ruling Wednesday on Ferrari Bid to Stop Budget Cap

By VERENA VON DERSCHAU - Associated Press

PARIS, May 19, 2009: A French court is set to rule Wednesday on Ferrari's opposition to the budget cuts proposed by Formula One's governing body.

Several F1 teams are in dispute with the FIA over a budget cap, and last week's meeting with FIA president Max Mosley failed to resolve the dispute. Ferrari has taken legal action in a French court in a bid to stop the measure.

Ferrari sent a team of three lawyers to a high court in Paris on Tuesday, where judge Jacques Gondrand de Robert ruled that a decision will be made on Wednesday afternoon.

The FIA wants teams to voluntary sign up for a $62 million budget cap beginning next season.

Teams that accept the cap will be allowed to make more technical changes to their cars than those who don't. But Ferrari, Renault, Toyota, Red Bull and Toro Rosso have threatened to pull out of next year's championship if the cap isn't overturned.

Ferrari argued to the court that the FIA should not change the rules.

The Italian team's lawyers, Emmanuel Gaillard and Henri Peter, said that F1 was in danger of becoming a two-tier championship if budget caps were applied. Furthermore, Peter argued, Ferrari has 700 employees worldwide and is unable to reduce its budget significantly in such a short time.

FIA lawyer Hugues Calvet countered that the survival of F1 means cutbacks are necessary in a time of "deep financial crisis."

Team owners met with Mosley and F1 boss Bernie Ecclestone in London last week.