UPDATE 1-Motor racing-Formula One cost cap set at 40 mln pounds


* Cost cap set at 40 million pounds * Drivers' salaries exempt * Starting grid to be expanded to 26 cars in 2010 (Adds FIA comments, background) By Alan Baldwin LONDON, April 30 (Reuters) - Formula One teams will be granted more technical freedom if they compete with a budget cap of 40 million pounds ($59.35 million) next year, the sport's governing body said on Thursday. Three new teams will be allowed to enter, expanding the starting grid to a maximum of 26 cars or six more than ...

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