New teams face £30m deposit

The new proposal is to be put forward to F1's legislative body, the FIA World Council, in October.

The radical plan was discussed recently by the F1 Commission.

If accepted it would solve the problem of under-financed teams entering the sport and then going bankrupt.

The idea will also ensure any new team has enough resources to compete in at least its first season.

The bond will be set at US$48m - the estimated budget of a mid-grid team - and will be repaid at $4m a month over the first season.

Three potential bids are in the running to be F1's 12th team.

Toyota is hopeful of entering in either 2002 or 2003.

Team Lotus, headed by David Hunt, and Robin Herd, founder of the now-defunct March, outfit have also made inquiries about starting in 2001.

Herd is believed to have Arab backers, while Hunt is trying to raise money with venture capitalist company Apax.

Apax was involved in the stock market flotations of football giants Manchester United and Brands Hatch.