Ecclestone rains on Phoenix flames

"He has bought nothing in Formula 1," Ecclestone told The Times. "All he has bought is some show cars. He can forget it. He is wasting his time thinking about racing in Malaysia."

Nickerson, a Lincolnshire-based property developer, paid two million pounds for the Prost assets, which include technical drawings, tools and two F1 cars, but crucially not the team itself, which would have meant paying off its 20 million pound debts. Under the rules of the Concorde Agreement that governs F1, any new team has to lodge a bond of 48 million dollars with the FIA, so if Phoenix intends to race this year it will have to raise this amount.

"We are waiting for an official communication from the purchasers of the Prost assets but they do appear to have major difficulties if they want to join the grid," added FIA president Max Mosley.

With F1 grid slots limited to just 12 teams, acquiring Prost seemed like a potentially lucrative move. Rumours circulated that Volkswagen was behind the buyout and that the cars would be branded Skodas. However, these stories have been strongly denied.

For the full story behind the Phoenix saga, buy this week's AUTOSPORT magazine - on sale Thursday, March 7.