CEO of Formula One Management (FOM) Bernie Ecclestone has said he plans to halve the prize money paid to teams unless they sign a contract committing them to race.

According to UK business newspaper the Financial Times, Ecclestone plans to use the money saved to reduce hosting fees paid by circuits.

"They [the teams] want to be paid in the same manner as if they had agreed to be committed [to race] for five years but they don't want to be committed," he said. "They shouldn't get the prize money. We are now running more of a cash-on-delivery service. You sign the contract and we will pay you in full."

International Automobile Federation (FIA) president Max Mosley also said this week that Formula One teams will definitely have a budget cap next year, although it will be set above the proposed £30 million ($45 million).

Mosley has previously suggested introducing an optional cap, with teams that accept it being granted greater technical freedom than those with unlimited budgets.

"Everything is going ahead as planned. It's a little bit more than £30 million but we have been successful," he told reporters after a meeting of the governing body's world motor sport council.

Mosley added that the cap was essential "if we are not going to lose a lot of the teams" and to attract new entrants to the sport.

source - sportbusiness.com