F1 'feeder' racing plan looks set to rev up CVC

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It comes as good news for CVC, the private-equity owner of F1's commercial rights, as the new brand will lift revenues and enable it to pare down its $2.3 billion (£1.3billion) debt from buying the F1 business.

The new series, to be called GP3, will have a fraction of the multi-million dollar entry costs associated with F1.

It would be a stepping stone up to F1's current support race GP2 which, according to industry monitor Formula Money, has typical team budgets of $5 million against $400million for a top F1 outfit.

More than half the GP2 team revenues are provided by the drivers and their sponsors, which is a hurdle for new talent entering the sport. In contrast, it is expected that GP3 teams could have costs of just $650,000 per season. CVC's start-up costs would be minimal with the $200,000 cars probably owned by the teams.

CVC bought into F1 at the end of 2005 and typically targets a three-to-five-year holding period for its investments.

It recently quashed rumours it was looking at selling its stake in F1.