2010 Formula One Regulations
Budgets
As an alternative to running under the existing rules, which are to remain stable until 2012, all teams will have the option to compete with cars built and operated within a stringent cost cap.
The cost cap is £30m (currently approximately €33 or $42m). This figure will cover all expenditure of any kind. Anything subsidised or supplied free will be deemed to have cost its full commercial value and rigorous auditing procedures will apply.
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 as follows:
1. A more aerodynamically efficient (but standard) under body.
2. Movable wings.
3. An engine which is not subject to a rev limit or a development freeze.
The FIA has the right to adjust elements of these freedoms to ensure that the cost-capped cars have neither an advantage nor a disadvantage when compared to cars running to the existing rules.
From the front page.
Now, with the £30m does that include all wages? I'm guessing it does. This really does limit the car's development. However, "an engine" doesn't really explain much at this stage - will it be a 2.4 V8? Will it be a 3.0 V10 (doubt it)? Whatever it is, it's great news as the engine freeze/limit is a horrible thing for F1.
£30m is a really small amount of money though - I'm guessing the smaller teams will take up the offer but it will be quite a challenge to work within it. I would have said at least £50m for it to be realistic.