F1 Breakaway/Split: Briatore vs Ecclesone?

The Age/Ben Doherty - Grand Prix fallout threatens Melbourne event

Bernie Ecclestone's F1 championship is locked in a long-running dispute with major race teams, who are threatening to set up a rival competition.

Melbourne will have a Grand Prix race next year, but it could be a race without Ferrari, McLaren, or Brawn GP after eight of the 10 Formula One teams pulled out of Bernie Ecclestone's F1 championship for next year.

In a dramatic escalation of a long-running dispute between the diminutive F1 tsar Ecclestone and team bosses, the Formula One Teams Associations has withdrawn from next year's championship, threatening to set up an alternative championship in direct competition.

But Melbourne's race organisers say they are unconcerned by the falling out, saying the brinkmanship was the latest bargaining tactic in long-running negotiations over the running of the sport.

"The matter is not resolved, it is not final, we expect there to be plenty more played out on this matter, and we have every faith that Formula One Management will reach a satisfactory resolution," Australian Grand Prix chief executive Drew Ward said.

"The important thing from Melbourne's point of view is that the Australian grand prix will happen next year in March as expected and it will be the great show it always is."

Major events minister Tim Holding said planning was already well underway for next year's race at Albert Park.

"We fully anticipate there will be a fantastic Formula One event in Melbourne next year, just as we would ordinarily expect.

The major sticking point between the teams and motorsport's governing body, the FIA, is over controversial budget cap proposals.

FIA President Max Mosley wants to cap teams' yearly budgets at 40 million pounds, a fraction of their current budgets. Ferrari, by far the biggest and best-supported team in F1, in particular, opposes any cap on spending.

In a statement FOTA accused the FIA and Mr Ecclestone, the commercial rights holder of Formula One, of trying to divide and rule the teams.

"The wishes of the majority of the teams are ignored. Furthermore, tens of millions of dollars have been withheld from many teams by the commercial rights holder, going back as far as 2006. Despite this, and the uncompromising environment, FOTA has genuinely sought compromise.

"It has become clear, however, the teams cannot continue to compromise on the fundamental values of the sport.

"These teams, therefore, have no alternative other than to commence the preparation for a new championship which reflects the values of its participants and partners."

Former Formula One world champion and A1 Team Australia boss Alan Jones said if Ferrari and McLaren-Mecedes refused to race next year Melbourne shouldn't bother holding a race.

"They're established names with a huge following. If they don't turn up people are just going to say 'Well what's the point'," he said.

"It's all very good for Mosley to invite entries for people that come in with new teams but they're names and teams that people have never heard of."

Jones blamed Mosley for the dispute but said the two warring sides would reach a resolution and described the breakaway group's statement as "lollipop talk".

"It think it's a tragedy what's going on in Formula One, I think they're disappearing up their own backsides," he said.

with Mex Cooper

www.theage.com.au/news/sport/motorsport/grand-prix-fallout-threatens-melbourne-event/2009/06/19/1244918184145.html




ITV FOTA to launch rival championship

Friday, 19 June 2009 00:27

The Formula One Teams’ Association has thrown the sport into total chaos by announcing its eight members will set up their own breakaway series at the end of the season.

Following weeks of talks with the FIA aimed at breaking the deadlock in the bitter row over the 2010 budget cap and governance of Formula 1, a joint statement from Ferrari, McLaren, BMW, Renault, Brawn, Toyota and both Red Bull teams issued on Thursday night said they had grown tired of the governing body’s demands and had been left with “no alternative” other than to initiate a split.
The cataclysmic announcement comes after the eight FOTA members met for 11th-hour talks at Renault's Enstone factory on Thursday evening to decide whether they would accept FIA president Max Mosley’s final compromise offer and submit unconditional entries for the 2010 season ahead of Friday’s deadline.

In its bombshell statement FOTA accused both the governing body and F1's commercial supremo Bernie Ecclestone of trying to divide the group, adding that while it has strived to strike a peace it was no longer willing to "compromise on the fundamental values of the sport".

The FOTA statement said: "The FIA and the commercial rights holder have campaigned to divide FOTA.

"The wishes of the majority of the teams are ignored. Furthermore, tens of millions of dollars have been withheld from many teams by the commercial rights holder, going back as far as 2006. Despite this and the uncompromising environment, FOTA has genuinely sought compromise.

“It has become clear however, that the teams 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.

“These teams therefore have no alternative other than to commence the preparation for a new Championship which reflects the values of its participants and partners."

FOTA says its new championship will include all of Formula 1's existing household stars and major figures, with “transparent governance” one of its key goals.

It added that it would welcome new entrants to join its series and promised to improve the experience for fans.

“This series will have transparent governance, one set of regulations, encourage more entrants and listen to the wishes of the fans, including offering lower prices for spectators worldwide, partners and other important stakeholders," the statement added.

“The major drivers, stars, brands, sponsors, promoters and companies historically associated with the highest level of motorsport will all feature in this new series.”

Should there be no U-turn from the teams' alliance and they go ahead with their intention to set up a rebel championship, then it will mark a destructive conclusion to one of the biggest controversies in Formula 1's 60-year history.

After the FIA's World Motor Sport Council raised the ire of the teams by unilaterally passing an optional £40m budget cap, and two sets of technical regulations, for 2010 at the end of April, Ferrari, Renault, Toyota and Red Bull all threatened to pull their teams out of the sport at the end of the year if the rules stood as published.

With Mosley adamant a budget cap was necessary to safeguard F1’s future amid the recession and entice much-needed new teams onto the grid, FOTA remained at loggerheads with it over the future direction of the sport and several rounds of crisis talks ahead of the Monaco Grand Prix last month failed to end the standoff.

And while Williams and Force India were suspended from the teams' body after breaking ranks and submitting unconditional entries for the 2010 season, the remaining teams all made conditional applications for next season – stressing they would only enter if the 2009 rules were retained and a new Concorde Agreement signed.

McLaren, Renault, BMW, Brawn and Toyota were all subsequently handed provisional entries but told to drop their conditions by this Friday or risk being excluded from next year's grid.

Ferrari, Red Bull and Toro Rosso, meanwhile, were entered unconditionally with the FIA insisting they were duty-bound to continue in the sport until 2012 due to previous contractual agreements with the governing body and FOM.

But after further meetings between the two warring sides broke down on Tuesday, and a last-ditch exchange of letters detailing their respective compromise offers failed to break the deadlock heading into Friday, FOTA has now taken the most dramatic step available to it.

The teams' alliance added in its statement that it believed that it had already introduced a number of major cost reduction measures to get spending in the sport under control, reiterating that its members had offered the FIA their commitment to F1 until 2012 if its terms were met.

"Since the formation of FOTA last September the teams have worked together and sought to engage the FIA and commercial rights holder, to develop and improve the sport," its statement added.

"Unprecedented worldwide financial turmoil has inevitably placed great challenges before the F1 community.

"FOTA is proud that it has achieved the most substantial measures to reduce costs in the history of our sport.

"In particular the manufacturer teams have provided assistance to the independent teams, a number of which would probably not be in the sport today without the FOTA initiatives.

"The FOTA teams have further agreed upon a substantial voluntary cost reduction that provides a sustainable model for the future.

"Following these efforts all the teams have confirmed to the FIA and the commercial rights holder that they are willing to commit until the end of 2012."

The FIA's next move may be to promote the provisional new entrants it left on a standby list for the 2010 grid while it waited for a resolution to the FOTA row, with Prodrive one of the teams hoping to get the opportunity to join the already confirmed Team US F1, Manor and Campos squads.

Furthermore should the FOTA rival series become a reality, then it is likely to trigger a legal battle between the governing body and Ferrari and both Red Bull-owned teams

Ferrari has insisted the FIA broke the terms of its 2005 agreement with the governing body by introducing the budget cap without its consultation.

www.itv-f1.com/News_Article.aspx?id=46159

London Evening Standard/David Smith

Bernie Ecclestone faces biggest fight in battle for F1 power

Walk through the paddock at Silverstone, where final preparations are taking place ahead of this weekend's British Grand Prix, and you will find Bernie Ecclestone's plush motorhome with its intimidating dark grey windows standing well apart from the rest.

Today, as Formula One digests the bombshell news that there will be two rival championships next season, Ecclestone's isolation is appropriate. Because one of the most powerful men in global sport is under threat of being cast aside by the leading teams who, until now, have raced to his beck and call.

The struggle for power in Formula One may be about to claim its biggest victim, the 79-year-old son of a Suffolk trawlerman who, through his exploitation of the sport's broadcasting rights, has netted a fortune estimated to be worth £1.5billion, making him the 24th richest man in Britain according to the Sunday Times Rich List.

The question being posed at Silverstone is whether Ecclestone has made a fatal business error by underestimating the resolve of the FOTA rebels to take a greater cut of the money that oils the wheels of their sport.

Ecclestone, through his London-based Formula One Management and Formula One Administration companies, is closely aligned with Max Mosley, the controversial president of the world motorsport's governing body, the FIA, who has angered the teams with his dictatorial imposition of new rules and a seemingly unshakeable belief that only a budget cap on expenditure can prevent other major manufacturers following Honda out of the pit lane.

Between them, Ecclestone and Mosley formed a formidable partnership that controlled the governance of Formula One and its income from broadcasting and the fees that circuits pay to host Grands Prix.

But the two have been outnumbered by the gang of eight who form the membership of FOTA - Ferrari, McLaren, Brawn, Renault, Toyota, BMW-Sauber, Red Bull and Toro Rosso.

They, like Mosley, could see the way the financial wind was blowing when Honda suddenly quit in December last year. The global credit crunch meant the years of exorbitant spending in Formula One were over. But the teams wanted to cut costs their way, not through Mosley's budget cap of an initial £40 million which, besides anything else, would have led to wholesale redundancies throughout a Formula One industry based mainly in the United Kingdom.

Governing the cap would also have meant teams financed by major industrial corporations such as Mercedes-Benz, BMW and Toyota having to open their books to FIA auditors. If Mosley, a sharp political animal, thought he was going to get away with that, he was being unusually naive. He, and Ecclestone, misjudged the teams in another crucial area.

The FIA's rule book was kept in a state of flux, requiring constant updating and development, which did exactly what Mosley claimed he wanted to avoid, namely unnecessary expense.

The collective patience of the teams has been worn down over recent months by what they perceive to be Mosley's belligerence. Now, they have taken their ball away and intend playing their own game.

Make no mistake, theirs will be no fly-by-night championship. There are very powerful men guiding FOTA such as Luca di Montezemolo, the chairman of Ferrari and Fiat, and Flavio Briatore (right), team principle of Renault who will not let his friendship with Ecclestone - they co-own Queens Park Rangers - affect his belief that the rebels now hold the upper hand.

Indeed, it would seem they hold a full, winning hand.

The FOTA championship will boast such iconic names as Ferrari and McLaren, and sensational newcomers Brawn GP. They will also have the star drivers such as reigning world champion Lewis Hamilton and Jenson Button, the new champion-elect after winning six of the season's opening seven races with his Brawn GP car.

Finding circuits will be no problem. Silverstone, about to lose the British Grand Prix to Donington, has signalled it would be willing to talk about hosting a race.

Prince Albert of Monaco has also hinted that he would not be interested in seeing his principality host a race without Ferrari.

And the failure of Mosley and Ecclestone to maintain a Formula One foothold in the United States and Canada, much to the anger of the manufacturers who have road cars to sell there, means a breakaway series will be welcomed with open arms on the other side of the Atlantic.

Who will the fans follow? FOTA's big-name stars or the relative unknowns who will compete under the FIA flag? The answer is obvious, not least to the BBC who today will be examining their contracts with Ecclestone in minute detail.

Almost certainly, those deals will contain clauses requiring Ecclestone to provide a grid full of cars and drivers that will draw the viewing public.

If so, a thought occurs. What was Ecclestone doing this morning behind those dark windows of his motor home? Was the arch-negotiator making new deals, forging new alliances?

Formula One has a habit of speeding towards a head-on collision but steering clear of it at the last minute. Would it be that surprising if FOTA's championship hits the road next season with Ecclestone behind the steering wheel. Anybody who knows him, would not discount that possibility.

www.thisislondon.co.uk/standard-sport/article-23709681-details/Bernie+Ecclestone+faces+biggest+fight+in+battle+for+F1+power/article.do

The major problem for everyone all seems to stem from Mosley. Why not stick him in a dungeon for a good while, apparently e'd be happy with that.

Guardian

Formula one's future in Max Mosley's hands, says Bernie Ecclestone• Ecclestone shrugs off questions about sport's future
• Jackie Stewart says it may be time for Mosley to go

Formula one's commercial rights holder, Bernie Ecclestone, shrugged off questions about the sport's future when he arrived at Silverstone today. "No idea. Speak to Max [Mosley]," the 78-year-old told reporters and that sentiment was echoed by Nick Fry, the chief executive of the championship leaders Brawn GP, who said: "The ball is in Max Mosley's court."

The triple world champion Jackie Stewart, meanwhile, has suggested that Mosley may have to leave his post in the wake of last night's announcement that eight teams are prepared to form a breakaway series. Stewart, who has long been a thorn in Mosley's side, felt he was not alone in wanting a change at the top of the governing body.

"I think they [the teams] do want Max to go because frankly some of the decisions made over the years have been very questionable," he said. "For example, a $100m [£61m] fine on McLaren for something that was never proven. Never in the history of sport has such an amount of money been levied by a sporting authority. And that was something that he drove. I think a lot of people are kind of fed up with the dictatorial attitude. He has a great position of power but big trees do blow over."

Stewart, however, added that here may still be a solution to the crisis. "The fat lady hasn't sung yet," he said. "Fota [the Formula One Teams' Association] have made a decision that they cannot go on with the governance in its present form. If there is room for further discussion and the governance backs off from some of its insistencies, it may well be that they can come together under a new set of managements. But I think the trouble is that Max has gone too far with this and the teams have suddenly said 'I'm sorry, we can't take it any more'."

www.guardian.co.uk/sport/2009/jun/19/formula-one-bernie-ecclestone


Motor Sports Talks in high gear as F1 crisis races on
By Motorsport.com/GMM

On the face of it, the teams have resolved to break away and Max Mosley is sticking to his close of business deadline.

But in the Silverstone paddock, the Red Bulls outpacing the Brawns in Friday morning practice was merely a side issue, as the political saga raced ahead at the scene of the British Grand Prix.

The FIA on Friday morning said the final 2010 entry list will be published on Saturday, but in the middle of a media scrum at Silverstone, Max Mosley said: "We're going to issue a statement later on."

By noon, meetings were in full swing in the Ferrari motor home. Earlier, Mosley met for 30 minutes in Bernie Ecclestone's paddock HQ.

Afterwards, the F1 chief executive was coy, insisting he doesn't "worry about anything."

"No idea," the 78-year-old added when asked about the sport's future. "Speak to Max. Is he here?"

www.motorsport.com/news/article.asp?ID=333085&FS=F1

And legal....

F1 set for split as FOTA leaves, FIA makes legal threat (4th Roundup)
Formula One News
By Claas Hennig Jun 19, 2009, 16:04 GMT

Silverstone, Britain - Formula One racing was facing a dramatic split on Friday as eight teams announced their intention to form their own series and ruling body FIA said it would take immediate legal action against them.

FIA described the action as a 'grave violation of competition law' and said after a review by its lawyers that it would be launching legal proceedings 'without delay.'

The teams involved are Ferrari, the only team in F1 since its inauguration in 1950, current championship leader Brawn GP, McLaren-Mercedes, BMW-Sauber, Toyota, Red Bull, Toro Rosso and Renault.

They are organized in the umbrella body FOTA which made the announcement early Friday, firmly blaming the FIA with its president Max Mosley and commercial rights holder Bernie Ecclestone for the standoff in a budget cap row.

'I sympathise with the public,' said McLaren chief Martin Whitmarsh, adding that Formula One fans had every right to be 'confused and disappointed' with developments.

But he added that the eight FOTA teams would be enough for a new championship 'although new teams or existing teams would be welcome.'

Brawn GP chief Ross Brawn said it was too early to comment on the FIA threat of legal action as news had only reached the teams shortly before the news conference.

However Brawn said Mosley's removal as FIA president was not a condition for the teams to continue, nor was it something ever discussed by FOTA.

FIA issued two statements during the day, the first saying FOTA wanted to govern the sport and that it would announce its 2010 grid on Saturday - then with mostly new teams and drivers.

However in the second statement late afternoon, FIA said its final 2010 entry list 'will be put on hold while the FIA asserts its legal rights.'

There was no sign of a compromise in the statement which came after the second practice session at Silverstone for Sunday's British Grand Prix.

'The FIA's lawyers have now examined the FOTA threat to begin a breakaway series,' it said.

'The actions of FOTA as a whole, and Ferrari in particular, amount to serious violations of law including wilful interference with contractual relations, direct breaches of Ferrari's legal obligations and a grave violation of competition law. The FIA will be issuing legal proceedings without delay.

'Preparations for the 2010 FIA Formula One World Championship continue but publication of the final 2010 entry list will be put on hold while the FIA asserts its legal rights.'

Championship leader Jenson Button, holder Lewis Hamilton, ex-champs Kimi Raikkonen and Fernando Alonso and the other drivers from FOTA teams all committed themselves to their employers.

'That's the end of Formula One. A new era will start,' said Alonso.

Mosley did not comment in Silverstone while Ecclestone said he was 'not concerned' because 'the Formula One world championship has been going for 60 years and will continue to go.'

The Formulamoney monitor, quoted on the website of broadcasters ITV, said that F1 would lose 2.2 billion dollars the eight FOTA teams spend in the sport, 47 per cent of the total 2008 revenue in the sport.

The standoff arose on a budget cap of around 60 million dollars the FIA planned to introduce for the 2010 season. The teams protested they had no saying over the issue and wanted a gradual decline.

F1 rules have effectively been in FIA's hand since the past Concorde Agreement expired in 2007. Until then, the rules were decided by the FIA together with the teams and Ecclestone.

FIA issued a 2010 grid last week which included Ferrari, Red Bull and Toro Rosso, who renewed the Concorde Agreement until 2012. The other five FOTA teams were listed provisionally.

The eight teams continued their resistance and made their announcement after efforts to reach a compromise failed, with Ferrari insisting it was not tied to the 2012 agreement because it was not approached by FIA over the new rules.

'It has become clear ... that the teams 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,' FOTA said.

'These teams therefore have no alternative other than to commence the preparation for a new Championship which reflects the values of its participants and partners.

'This series will have transparent governance, one set of regulations, encourage more entrants and listen to the wishes of the fans, including offering lower prices for spectators worldwide, partners and other important stakeholders.'

In its initial statement, FIA said it 'cannot permit a financial arms race in the Championship nor can the FIA allow FOTA to dictate the rules of Formula One.'

'The FIA is disappointed but not surprised by FOTA's inability to reach a compromise in the best interests of the sport. It is clear that elements within FOTA have sought this outcome throughout the prolonged period of negotiation and have not engaged in the discussions in good faith.'

Of the 13 teams unveiled last week, current outfits Force India and Williams as well as new entries Campos, Manor and US F1 would stay. The FIA said over the past days that several other applicants were on hand to fill the ranks in the case of a split.

www.monstersandcritics.com/sport/formulaone/article_1484712.php/F1_set_for_split_as_FOTA_leaves_FIA_makes_legal_threat__4th_Roundup__