Phoenix loses battle with FIA

Phoenix, fronted by Mr Charles Nickerson, a long-time friend of TWR Engineering boss Tom Walkinshaw, had hoped to contest the world championship with a team based around the assets of the defunct Prost Grand Prix operation, with engineering support from TWR.

When the FIA ruled that Phoenix had purchased neither the rights to the Prost name nor its entry to the world championship from the French liquidators of the four-time champion's team, and prevented it from racing in Malaysia, Phoenix decided to pursue the matter in the courts. Had the decision gone in their favour, Phoenix would effectively have secured a cut-price entry to the championship, which could either have been used or, potentially, sold on.

"It is obviously much too early to say what the ultimate outcome of the matter will be and we shall be considering the future in the light of the extensive judgement and what it means for us as a company and a potential competitor in the FIA Formula One World Championship," said Nickerson.

Phoenix brought its case against both the sport's governing body, the FIA, and Formula One Management. In ruling against the prospective team, however, the court has also demanded that it pays costs, which estimates suggest could be in the region of $750,000.

The ruling was met with joy by Minardi boss Paul Stoddart, who last week was forced to lay off 20 people from his team. He blamed the fact that an estimated 10 millions pounds worth of prize an travel money was owed to the team following the collapse of Prost, but this was tied up as a result of Phoenix's legal action and should now be distributed between Arrows and Minardi, both of whom finished beneath Prost in the championship.

"The whole thing was a sham that should never have been allowed to happen," he said.

In the final verdict of the Phoenix vs FIA case, the sitting judge declared the case 'stayed', which means there was no right of appeal. If Nickerson intends to challenge the ruling he would be forced to take the case to arbitration in a neutral country, most likely Switzerland.