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Key points of the FIA-FOTA battle

Fri, 19 Jun 21:23:17 2009

Drawn-out negotiations and political battles between the FOTA alliance, FIA President Max Mosley and F1 supremo Bernie Ecclestone have resulted in the series going in one direction while the rebel teams have opted to pull out from the sport at the end of the season.

Although the Formula One Teams Association has confirmed its intention to launch a rival series, bringing all the current manufacturers, high-profile drivers, and supporting sponsors away with them, it seems the Silverstone paddock is abuzz with last-gasp discussions led by Ecclestone as he tries to save his empire and bring the warring Mosley and FOTA factions together.

As Formula One heads into disarray, here is a short history of the events which have led to what might be the final turning point.

KEY POINTS OF THE FIA-FOTA BATTLE:

December 2008:

Last December, Honda announced its departure from Formula One due to the economic crisis; in the World Rally Championship, Subaru and Suzuki did the same. Three major car manufacturers leaving high-profile motorsport series within the same month was the spark that convinced both FIA President Max Mosley and the Formula One Teams Association that cost-cutting measures needed to be implemented quickly.

The FOTA members applied common voluntary measures to all teams before the 2009 season even began and promised to brings costs down even further over the next two or three years by bringing in further measures with each new season.

February 2009:

The ten FOTA members propose their measures to F1's governing body FIA; Mosley has his own proposals in mind as well and warns that Formula One has reached unsustainable levels even for manufacturers, let alone private teams.

The FIA President intends to work out a plan which would allow manufacturers to compete at reasonable levels of investment while opening the door to new private teams as well.

March 2009:

Finding the FOTA measures inadequate, the FIA suddenly adopts and announces a modified set of regulations coming into effect with the 2010 season: controversy erupts immediately as a 'two-tier' system is put in place.

Teams accepting a budget limitation of €33 million (US $46m) per year will enjoy liberties such as no rev limits on the engines, no test bans, and two moveable wings amongst other advantages. Teams which refuse the Mosley plan and wish to continue with unlimited budgets will deal with constraints similar to the 2009 regulations.

The quite frustrated FOTA members refuse the concept of working with two sets of technical rules - and therefore two different types of cars on the track. In addition, with some teams seeing their F1 budget slashed by over 80% in a single stroke, FOTA states that the Mosley plan will prevent Formula One from being the pinnacle of racing and innovation, diluting it into a 'GP3 series.' The battle is on.

April 2009:

Having begun negotiations, Mosley agrees to augment the budget cap from €33 million to €45 million (US $62m), but continues to insist that his plan will save Formula One from itself by bringing costs down in a quick move rather than spanning two or three years as the teams request. The Formula One Teams Association continues to consider the amount unacceptable and talks go on between the parties.

May 2009:

The chasm widens between the FIA's position and FOTA's. Toyota, Renault, Red Bull, Ferrari, and BMW all warn they will leave the sport if significant changes aren't brought to the 2010 regulations. The threat is taken lightly, having been heard in the past.

However, the teams are not backing off and continue to persistently demand that the budget cap plan be dropped in favour of their proposals which they feel are being ignored. Ferrari brings the FIA to court, claiming an existing agreement with the governing body that prevents it from changing the rules without its input, but loses the case.

As meetings drag on with no agreements forthcoming, FOTA also demands to take part in the governance of the sport and takes up another issue with F1's commercial rights holder in requesting a greater share of revenue. For FOTA, after years of political bickering in margin of the sport, the time has come to settle several matters once and for all.

Meanwhile Mosley holds his stance and maintains the May 29 deadline for teams to file their entries in the 2010 championship with the rules as they stand, with the exception of the 'two-tier' technical aspects which have been put aside. The €45 million (US $62m) budget cap is still active, however certain major salaries and marketing expenses are not subject to spending limits.

Two days before the entry deadline and fearing its exclusion from its core business, the Williams team files its paperwork and accepts the controversial 2010 regulations. In the circumstances, the Formula One Teams Association expels Williams for breaking its ranks.

On May 29, the nine remaining Formula One Teams Association members (Ferrari, Toyota, Renault, BMW Sauber, McLaren, Brawn, Red Bull, Toro Rosso and Force India) file conditional entries for the 2010 championship and demand that they be considered as a whole and not on an individual basis.

If the regulations are changed in their favour, if the budget cap is brought closer to €100 million (US $139m), if the teams take part in the governance of the sport, and if the Concorde Agreement with Bernie Ecclestone-led Formula One Management grants them a greater share of revenue, then FOTA will sign aboard.

Additionally, the rebel teams request that all matters be agreed upon before June 12, the date upon which the FIA will be publishing the 2010 F1 championship entry list.

If not, the FOTA members' filed entries must be declared void and the nine teams will leave Formula One at the end of the current season. Threats of a rival breakaway series gather speed and credibility.

June 2009:

A week after the May 29 deadline, citing commercial obligations, Force India removes the conditional status of its entry. The team is excluded from FOTA but continues to support the rebel teams' cause. Meanwhile, an ever-increasing number of drivers criticise the Mosley plan, put their support behind FOTA, and call for an end to all the politicking.

FOM representative Bernie Ecclestone threatens to sue the rebel teams for millions of dollars if they create a rival series and approach any of Formula One's circuits or media outlets.

As expected, on June 12 the FIA publishes the list of entrants for the 2010 season. The FOTA members are all included, however an asterisk next to five teams' names (BMW, Brawn, McLaren, Toyota and Renault) indicates their presence as conditional since the FIA has decided to grant them another week of negotiations before a truly final list is published on June 19.

Claiming a pre-existing obligation with FOM (and although the FIA should not have taken a position on the matter), the Ferrari, Red Bull and Toro Rosso teams appear as unconditional entrants, indicating their participation in the 2010 championship under Mosley's plan.

The move is seen as a provocation, or at least an attempt to generate division between the FOTA members. All three teams issue statements that they are true to FOTA and indicate that the FIA's decision to list them as unconditional entrants was done against their will.

Mosley invites the eight rebel teams to drop their conditions and to sign on before the new June 19 deadline; as for the Concorde Agreement, he suggests the teams sign first and negotiate terms afterwards. FOTA has no intention of doing either.

The same day, the European carmakers association publicly declares its support of FOTA and strongly hints at its readiness to fund a new series parallel to Formula One.

On June 19, following the failure of negotiations with the FIA and FOM and accusing both of having tried to divide their FOTA alliance, the eight rebel teams (Ferrari, Renault, Toyota, BMW, Brawn, McLaren, Red Bull and Toro Rosso) announce their intention of creating a new motorsport championship.

The FOTA members stated that they "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."

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

After first indicating that the final entry list would be published the following day, the FIA issued a press release: "The FIA's lawyers have now examined the FOTA threat to begin a breakaway series. 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."

As things stand now, Formula One is set to field 13 private teams next year, with only Williams and Force India as pre-existing outfits. It is far from certain that Bernie Ecclestone's empire can survive on the long term if fans also defect from a series having 60 years of history.

The self-governed FOTA breakaway series will feature manufacturers, well-known drivers, and established teams that fans will surely continue to support. The possibility of a new championship heading for popular venues which were abandoned by F1 in favour of rich destinations displaying empty grandstands is another matter to consider.

It remains to be seen if an agreement can still be reached in such a hostile environment, but whatever the outcome, the fans will decide where there loyalties are.

 

Comment 7 - 26 of 26

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  1. I hope the break away F-1 teams will realise that if­ they go ahead with there own series they wont be racing­ at Monaco, Monza,Spa etc as i am shure the FIA has­ these venues sown up, so do you ALL want a CART/IRL­ @#$% up! IF so you "8" continue bickering et­ all !!!!!!!!!!!

    From Motorhead "Fish", on Mon 22 Jun 4:56PM
  2. The carmanufacturers are just after power to get the­­ easymoney like they always do and did, in peacetime­­ they want goverments to pay otherwise they kick out­­ workers by the thousands, in wartime Renault worked­ for­ the enemy and so responsible for the death of­ their own­ countryman. BMW and Mercedes used SLAVELABOR­ of whom­ many died due to the harsh circumstances.­ Family Quandt­ the owner of BMW in wartime still owns­ the most shares­ nowadays. !!!!!!!!!!!!!!!!! Only easy­ money that is­ the game.

    From Ape, on Mon 22 Jun 2:45PM
  3. f1 are controlled by old chap like bernie & max the­ nazi's impersonator...
    sooner or later people has­ no interest in looking at f1....

    From azroy, on Mon 22 Jun 2:42PM
  4. Its only a sport - I like watching F1 and I enjoy its­ history, but if it were to disappear up Max &­ Bernie's arseholes life and all its really­ important things would still go on. I won't shed a­ tear over these multi-millionaires arguing their sport­ away.

    From abtscot, on Mon 22 Jun 2:10PM
  5. Comment hidden due to its low rating. Show

    FIA thank you of the good governing of the F1 despite­ all problems the carmanufacturers make and try to take­ over the buisiness, They the manufacturers always want­ the easy money ,in peacetime they want goverments to­ pay for them and in wartime Renault worked for the­ Nazi's, Mercedes and BMW used slavelabor of whom­ many died due to harsh circumstances and the wartime­ owners like Family Quandt stil have the biggist say in­ BMW.

    From Ape, on Mon 22 Jun 12:22PM
  6. IMHO as a fan of F,1 the FIA have been trying over­ several years to change the character of F1 by­ implementing rule changes and introducing new venues in­ the racing calendar. This has clearly been to the­ detriment of the sport as a whole and as an F1 fan I am­ totally P' O' with Mosley and co' as they­ want to dictate rather than govern. The FIA by changing­ rules and specifications year on year must be a­ financial stress on all the teams and stabilising rules­ and specks for three or four years would surly keep­ costs down for the teams, if thats what the FIA really­ want. The FIA must surly understand that in the current­ financial crises as in every business sector Inc F1,­ there will be inevitable team casualties. It seems to­ me the crux of the matter is the FIA, mainly Mosley­ trying to inforce budget cuts, with more and more­ rules, and a crazy two-tier system. Wacky Races or­ what!
    FOTA have my blessing, as they know F1 is motor­ racings premier sport and trying to restrict it and cap­ it will only force it into another league.

    From WILLIAM B, on Mon 22 Jun 11:21AM
  7. Comment hidden due to its low rating. Show

    ITs amasing all the fuss and "playing" by the­ "8" teams, would footballs govening bodies­ let the likes of Man U, Liverpool, the Arsenal et all­ make up the "rules" to there game/sport. Its­ so easy the FIA make the "rules" if u dont­ like them DONT RACE just go away and do some­ "knitting !" instead !!!!!!!!!!!

    From Motorhead "Fish", on Mon 22 Jun 11:14AM
  8. Why does everybody keep calling (supposedly cussing)­ Mosley "Mad Max"? I know it COULD mean crazy­ Max (Mosley). But the well known Mad Max character is a­ hero character, a good guy. Would you want him­ associated with a hero character? I wouldn't.

    Why­ don't we simply call him Pervert Max or something?­ Just a thought.

    From Spider, on Mon 22 Jun 9:37AM
  9. Max Max Max, do you really believe the Football­ Association could cap footballers transfer fees in­ order to keep costs down. The 2009 rules should stand­ for the next four or five years to give teams­ stability. Any further major changes should only me­ made with the teams agreement.. One major change the­ teams would all agree on is you should be replaced.

    From Peter, on Sat 20 Jun 10:02AM
  10. Max and Bernie are a disgrace both to F1 and to their­ own country. The sport deserves better than the silly,­ arbitrary rules the "dynamic duo" choose to­ adopt whenever it suits them. FOTA should go ahead and­ form their own championship because, if they stay with­ FIA, things won't get any better in future years.­ Enough is enough!

    From Vipson, on Sat 20 Jun 6:18AM
  11. I was thinking exactly what davedenton2001 was­ thinking... I say to Ferrari, if you must run: Keep the­ same car you are running now, stuff them in one hauler­ go to the tracks, and run a single lap. I seem to­ remember Arrows doing just that a few years back as­ they tried to find a suitor to buy the team. Doing just­ enough to keep them in the game, but not so much that­ they risked damaging anything in the process!!!! Bet­ you'll be under the FIA cap then!! No rule says you­ have to run all the laps of a race!

    I am also just­ drooling at the possibility of FOTA coming back to some­ of the classic tracks that Bernie abandoned. Bernie­ does not want to go to Silverstone anymore? Well I bet­ FOTA will... Bernie does not want to go to Canada? Well­ I bet FOTA will... Bernie does not need North America?­ Well I bet FOTA will come... Suzuka? Imola anyone? Just­ hold the FOTA together for a few more months to make­ this a done deal, and FOTA will have ALL the fans, most­ of the sponsors, and all the teams.

    Get Ron Dennis­ and Jean Todt, a couple of retired drivers (DC? MS?) to­ put together a rules committee... along with a­ representative from each team... gotta be better than­ Mad Max and his personal vendettas ruling the world and­ a weekend at Bernie's "you're gonna race­ where???" tracks!

    From whosthis101, on Sat 20 Jun 4:05AM
  12. It's LONG overdue. The fans, the teams, the­ manufacturers, the drivers, they are all seen as second­ to Bernie & Max. They are only there to line the­ pockets of those who think they are the be all and end­ all of Formula 1. With the global economy the way it­ is, Bernie and Max are gambling F1's future on the­ teams & manufacturers not having the will or the­ means to draw the line here and say in unison that­ enough is really enough. The Bernie and Max show MUST­ NOT go on. Brace yourselves, my fellow fans, the REAL­ show is about to begin. I hope it happens.....this­ time! Viva la Revolucion! Viva FOTA!

    From Rudy, on Sat 20 Jun 1:59AM
  13. One key note that may have been overlooked by Bernie is­ the three companies , Honda , Subaru, and Suzuki have­ one major thing in common . They are Japanese companies­ . The Japanese like the German , the British , and­ American car companies all have different ways of­ running this industry .This is by no means said to be­ offensive . It is just a fact that the Japanese will­ not wait until it is too late to stop funding a sport .­ Look at the problems in the U.S with the carmakers and­ you cam see why those three teams left .

    From barry w w, on Sat 20 Jun 12:57AM
  14. Bernie and Max have pushed for far too long. The racing­ the past few years has been spectacular, but­ they've taken great events from so many venues and­ handed their spots to venues that look real pretty, but­ don't draw fans. It's been a long time since­ I've heard "F1 is for the fans".

    Bernie­ and Max have done the smoke and mirrors show for too­ long. How many times have we seen; Bernie on the grid­ at a venue saying how magnificent the venue is and what­ a great crowd and this and that... Then a week later­ he's planted a knife in the back of the organizers­ because they didn't do this and need to pay more.­ Funny how he never mentions the fans while burying the­ knife, isn’t it? Canada, Imola, Indy, Spa and even his­ very own UK.

    Just as I applauded Tony George for not­ backing down to Bernie (who suggested Tony get­ government backing to help line Bernie's pockets so­ the USGP can continue) I applaud the teams for making a­ stand.

    I'm afraid for the future of the sport, but­ a line had to be drawn. Bernie and Max need a wake up­ call.

    Here's also where we'll find out just­ how many of the new applicants were real teams and­ which were decoys.

    From DB, on Sat 20 Jun 12:50AM
  15. I knew I've seen all of this before...Mosley is­­ Captain Queeg!!!! I'm convinced of it now. ­­ Listen...he has no friends, rules with an iron fist,­ has eccentric behavior, his­ peers don't trust him­ and don't like him, he tries­ to relive his glory­ past, makes horrible decisions and­ blames others,­ he's a coward and doesn't see­ things through,­ believes that everyone is out to get­ him, believes he­ and he alone knows the answer to the­ problem and will­ stop at nothing to find it even though­ he is told­ there is no problem. Mutiny on the­ Caine...I mean...in­ Formula 1!!!! I swear it's so­ close to what's­ happened it's scary!

    From gegaard, on Sat 20 Jun 12:42AM
  16. The European carmakers can supply FOTA,and embargo­ Formula One until Max is removed is one possibility.The­ new teams may plead no time, or decide its not worth­ racing without FOTAs teams in Formula One.sew78756 you­ make a good point but its been Max whos called in the­ legal eagles-not the teams.To have two men running the­ sport who are now past pension age in the 21st century­ and account to no one is not sound sense.

    From Rick Moth, on Fri 19 Jun 10:38PM
  17. F1 needs to remain the pinnacle of motorsport and not­ an over regulated formula ..... I'm surprised they­ haven't suggested racing round daft oval tracks,­ but perhaps they are saving that for later!!. ­ It's time guys, pull the trigger on Mad Max and the­ Poison Dwarf, these guys are making monkeys out of the­ teams and spectators and gradually destroying 60 odd­ years of motorsport heritage

    From to_simonwilson, on Fri 19 Jun 9:45PM
  18. It's too bad Honda was so poorly run. Their­ leaving Formula 1 certainly caused panic at the FIA. I­ can't understand how the FIA and Max didn't­ realize not all the Formula 1 teams have 700 employees­ and have a budget over 300m. That's why Honda left­ Formula 1. Horrible management at the top. There is­ no justification for a budget cap. Other teams­ aren't as poorly run as Honda was. They can't­ affrd to be. Let the teams spend however much they­ wish. The rich don't always win. When Alonso won­ for Renault I bet their budget wasn't higher than­ anyone else. Smart teams win more than rich teams.

    From gegaard, on Fri 19 Jun 9:04PM
  19. Hopefully FOTA will have the guts to carry this­ breakaway through, so it will get rid of Moseley and­ Ecclestone (two birds with one stone). good luck to­ them

    From Nick, on Fri 19 Jun 8:45PM
  20. I think FOTA has the guts to see it through. The­ question is whether the FOM will sit back and let­ Mosley drive the key players out of F1. My bet is­ Bernie locks Max up in a closet and negotiates a cease­ fire with FOTA. In the current economic environment­ neither side can afford to let this turn into some long­ drawn out legal battle. They can not afford to scare­ any potential sponsors away.

    From sew78756, on Fri 19 Jun 8:41PM
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