Letter could rescue Phoenix

Walkinshaw has always proclaimed that his involvement in the deal is a contract to provide engineering expertise to the new team, which intended to present itself for scrutineering in Malaysia.

The saga has puzzled the F1 paddock from day one. The money paid by Phoenix and Charles Nickerson is a trifling amount if the commercial rights and entry are included in the deal, a point forcefully made by Minardi boss Paul Stoddart when, in Melbourne, he accused Walkinshaw of wiping 300 million US dollars off the value of the paddock.

But equally, nobody can believe that Walkinshaw, a shrewd and successful businessman, would have recommended a 2.6 million US dollars spend on what, without the commercial rights, amounted to a few relatively worthless racing car bits.

One explanation is that the new team was attempting to effectively 'reserve' a cut-price grid slot either for its own usage or to 'sell on' at a later date. However, it is unlikely to have spent even the relatively trifling 2.6 million US dollars without canvassing an opinion on the legality of the move from those in authority.

The FIA has made its position clear in a press statement denying the team an entry on March 12, but Phoenix is expected to release its own statement later today.