It's Ferrari 0 vs Max Mosley 1

Ferrari legal action to overturn the FIA’s new budget cap regulations was rejected by the French court.

Tribunal de Grande Instance in Paris says Ferrari has its veto rights, but they should have exercised it during April’s meeting of the World Motor Sport Council.

FIA President Max Mosley was rejoiced about the decision and was quoted, “No competitor should place their own interests above those of the sport in which they compete. The FIA, the teams and our commercial partners will now continue to work together to ensure the well being of the Formula 1 in 2010 and beyond.”

The latest in the legal tussle regarding the new proposed budget cap has Ferrari, Renault, Red Bull and Toyota threatening to quit the sport. This decision might just be the turning point when F1 loses its key ‘big-boys’ constructors.

Ferrari official statement after the disappointing decision was, “If it is not possible for all parties to reach agreement, then in line with the decision of the Main Board, taken on 12th May, Ferrari will not enter its cars in a competition that, with the planned scenario in place, would see a watering down of the characteristics that have endowed Formula 1 with the status of the most important motor sport series and that have specifically led to the Maranello marque’s uninterrupted participation in the world championship since 1950.”

Not only the constructors are withdrawing, it seems some of the big-names of Formula One drivers are also considering to quit the sport.

Renault’s Fernando Alonso was quoted, “I don’t know if this will be my last time in Monaco. If the big teams and the big manufacturers leave Formula 1 then I don’t want to race with small teams, because it is not any more F1 and there are many other categories.”

It’s back to the drawing board for the constructors and FIA who are adamant that the cap is needed to save the sport in the current global economic crisis, and for new teams to enter.

So far ten new teams have expressed their interest to join the F1 in 2010.