Formula One was thrown into disarray yesterday, days ahead of the British Grand Prix, as the Formula One Teams Association (FOTA) announced they would be setting up a rival championship to that organised by the sport's governing body the FIA next season. FOTA who consist of McLaren-Mercedes, BMW Sauber, Renault, Toyota, Brawn GP, Ferrari, Red Bull and Toro Rosso have been opposed to FIA's plans to introduce rule changes over a proposed budget cap for next season and other plans for the future of the sport.

Williams and Force India, however, have accepted the new framework, along with the three new teams, USF1, Campos and Manor.

However, in a statement from FOTA obtained by AFP the rebel teams make it clear that they are ready to launch a breakaway as of the next campaign. "It has become clear that the stables cannot compromise on the fundamental values of the sport," read the statement.

"They have refused to modify the conditions regarding their signing up to the 2010 world championship. The teams have no alternative but to begin to prepare for a new championship which reflects the values of the competitors and their sponsors. This series will have a transparent governing body, one single set of rules. It would encourage new entrants, would willingly listen to the fans wishes, which includes lower admission prices throughout the world, for the important sponsors and major shareholders."