FIA rules against Phoenix.

Phoenix Finance, the group that bought the assets to Prost Grand Prix will not race this year, F1's ruling body, the FIA has said.

Phoenix, led by businessman Charles Nickerson, have arrived in Sepang with two 2001-spec Prost AP04 cars but it is now certain that the journey has been fruitless.

The FIA yesterday released the following statement, which concluded that the team has no 'rights to compete' having not purchased Prost Grand Prix's entry into the 2002 F1 World Championship.

The FIA statement read: "Having examined the judgement of the Tribunal de Commerce de Versailles, FIA's advisers have noted that the court has not transferred Prost Grand Prix itself nor made any attempt to transfer the Prost Grand Prix entry in the 2002 Formula One world championship, either to Phoenix Finance Limited or to Mr Nickerson."

FIA spokesman Francesco Longanesi told Reuters: "As such Phoenix will not be allowed to compete in the championship at any time this season and will therefore not be on the grid in Malaysia."

The decision is a blow for the Phoenix operation and it now seems they will need to put down a bond of $48 million if they are to enter F1 in 2003.

A Phoenix spokesperson told Reuters: "We have just been notified of the FIA's decision but it is too early to say what we will do. We need to sit down and talk about our options."

Whether or not receipt of the bond before 2003 might allow them to compete in 2002 remains to be seen, but at this moment in time it seems highly unlikely as it appears the team has no deal with either Bridgestone or Michelin for tyres and there are a host of other potential problems.

It was believed that Phoenix intended to compete this weekend with Gaston Mazzacane and possibly Tarso Marques.