A new Costs Commission is being set up to monitor and enforce these cost-cap financial regulations. The Costs Commission will consist of a Chairman and two other Commissioners, appointed by the WMSC for terms of three years.
One Commissioner should be a finance expert and the other should have high level experience in motor sport. The Chairman should have appropriate experience and standing in motor sport or sports governance. All members of the Costs Commission shall be independent of all teams.
In addition to the payments which it already makes to the top ten teams in the Championship, Formula One Management, the commercial rights holder, has agreed to offer participation fees and expenses to the new teams. This includes an annual payment of US$10 million to each team plus free transportation of two chassis and freight up to 10,000 kg in weight (not including the two chassis) as well as 20 air tickets (economy class) for each round trip for events held outside Europe.
To be eligible for this, each new team must qualify as a “Constructor” and demonstrate that it has the necessary facilities, financial resources and technical competence to compete effectively in Formula One.
To enable these cars to compete with those from teams which are not subject to cost constraints, the cost-capped cars will be allowed greater technical freedom.
The principal technical freedoms allowed are:
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1. Movable wings, front and rear.
2. An engine which is not subject to a rev limit.
The teams will also be allowed unlimited out-of-season track testing with no restrictions on the scale and speed of wind tunnel testing. Formula 1
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