Mclaren PUNISHED in the Spying controversy

In the biggest scandal to hit Formula One, McLaren was stripped of all points in the constructors' standings by the World Motor Sports Council on Thursday for allegedly using leaked technical documents belonging to rivals Ferrari. Under the ruling, McLaren is also not eligible to earn any more points this season.

McLaren drivers Lewis Hamilton and Fernando Alonso, who lead the drivers' standings, weren't punished and are well ahead of Ferrari's Kimi Raikkonen and Felipe Massa. FIA said it did not penalise McLaren's drivers "due to exceptional circumstances" because they provided evidence in exchange for immunity.

The fine, which may be reduced to $31 million because of the loss of prize money, dwarfs the previous formula one record of $US2.5m imposed on Turkish Grand Prix organisers last year for allowing the Turkish Cypriot leader to present the winner's prize.

The scandal broke in July when a 780-page technical dossier on Ferrari cars was found at the home of McLaren's chief designer, Mike Coughlan, who was later suspended.

Ferrari mechanic Nigel Stepney, who allegedly supplied the documents, was sacked.

The WMSC ruled in July that McLaren was guilty of fraudulent conduct for possessing the Ferrari documents, but didn't punish the team because there was insufficient evidence about the material being misused. However, FIA called a new hearing of the council last week after "new evidence" emerged.

Ron Dennis said the evidence given by his drivers, engineers and staff clearly demonstrated that his team did not use any leaked information to gain a competitive advantage.

Among those appearing at the hearing before the 26-member council were Hamilton, Dennis and McLaren test driver Pedro De La Rosa. Alonso did not attend.

Ron Dennis argued that the fine was effectively halved because McLaren didn't have to forfeit any revenue it had earned this season. He added that the financial strength of McLaren also would help absorb the impact of the fine. "We turn over roughly $US450m to $US500m a year, and we are debt free, so we're a very strong company [with] phenomenal growth," he said.

McLaren escaped the harshest possible penalty - banishment for it and its drivers from the 2007 and 2008 championships.

The English team said it would wait for FIA to publish its findings before deciding whether to appeal. Separately, McLaren was notified on Saturday that it was being investigated in a separate criminal inquiry in Italy.

Dennis and five other team members are reportedly under investigation.

Those allegations stem from Ferrari's criminal case against Stepney for allegedly placing a mysterious white powder on the gas tanks of the team's cars before the Monaco Grand Prix, in a supposed sabotage attempt.

Bernie Ecclestone told the BBC: "It came very close to McLaren being thrown out, it really was a genuine possibility.

"A few of us sort of battled on and campaigned for the fine instead."

Had McLaren been thrown out of the championship altogether, it would have meant the end of the drivers' title challenges of both Lewis Hamilton and Fernando Alonso.

In a 16-page document, motorsport's governing body, the FIA, said e-mails showed that McLaren test driver Pedro de la Rosa and reigning world champion Fernando Alonso had been aware of the Ferrari data.

Ecclestone said there was no doubt that a similarly heavy punishment would be handed out in future if any other team was found guilty of the same offence.

"Formula One is now more open than it has ever been because the threat is definitely there now if any team is helping anyone else," added Ecclestone.

"Even if it is a smaller team than McLaren, they're gone, without any hesitation.

"It really would have been bad news. McLaren would have lost more than they have been fined, if they'd have been able to keep going."

However, coming back to the racing circuit, Ferrari's Kimi Raikkonen set the pace ahead of McLaren duo Lewis Hamilton and Fernando Alonso in Friday's first practice ahead of this weekend's Belgian Grand Prix.

After Thursday's courtroom drama in Paris it was back to the track for Formula One with Raikkonen topping the times at the race which is making its return after being dropped last season due to poor facilities.