Formula 1: The Great Break-Up

After months of speculation, FOTA has announced its intention to create a championship to rival Formula 1 - stating that it was not able to agree on a compromise with the FIA. 

Fans have their opinions on who's just being too stubborn to budge, but it might seem that the damage has already been done. 

According to FOTA's press release, Ferrari, McLaren, Toyota, Renault, BMW, Brawn, Red Bull and Toro Rosso "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. The teams therefore have no alternative other than to commence the preparation of a new Championship which reflects the values of its participants and partners."

FOTA is already in talks with Carmelo Ezpeleta, whose Dorna Sports company handles Moto GP, to help with the new championship.

FIA's initial response to this? Sue the lot.

According to FIA, FOTA's actions as a whole, amounted to serious violations of law, including wilful interference with contractual relations, direct breaches of legal obligations and a grave violation of competition law."

Its president Max Mosley, said it is "disappointed but not surprised" that negotiations about income, governance and rules failed. However, "the FIA cannot permit a financial arms race in the championship nor can the FIA allow FOTA to dictate the rules of formula one."

Mosley has since retracted his intention to file a legal action, although he's not been subtle about his displeasure in the matter - calling Renault boss Flavio Briatore and the other bosses "the loonies" over the Silverstone weekend, to which Briatore shot back that "maybe he was loony".

As of yet, nobody can see both sides agreeing to anything, although this Wednesday's meeting of the World Motor Sport Council might see new developments.

But like it or not, the rebel eight are intent on leaving, which leaves us with the question - can F1 really survive without Ferrari and the other bigwigs?