The FOTA (The Formula One Teams Association) released a statement that makes it official that they will be forming a new competition next season. The teams are BMW-Sauber, Brawn, Ferrari, McLaren, Red Bull, Renault, Toro Rosso and Toyota.

The statement reads “The teams cannot continue to compromise on the fundamental values of the sport and have declined to alter their original conditional entries to the 2010 world championship. These teams therefore have no alternative other than to commence the preparation for a new championship which reflects the values of its participants and partners.”

This came in light of the FIA’s deadline for teams to register for the upcoming season or they might be excluded from the competition altogether. After all, they are now having new teams coming in to join the fray.

According to FOTA, “the new series would encourage more entrants, listen to the wishes of fans and have transparent governance. The major drivers, stars, brands, sponsors, promoters and companies historically associated with the highest level of motorsport will all feature in this new series,”

The FIA however might considering a law suit to try and settle the issue. They said “The FIA are disappointed but not surprised by FOTA’s inability to reach a compromise in the best interests of the sport. It is clear that elements within FOTA have sought this outcome throughout the prolonged period of negotiation and have not engaged in the discussions in good faith,” added a statement. The FIA cannot permit a financial arms race in the Championship nor can (it) allow FOTA to dictate the rules of Formula One.”