The Death of Formula one

[gregorvass]

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.

Civil War - Cases for a new series and the existing F1 champio

[mikecole]

Well this F1 fans loyalty will be firmly with FOTA. Bernie is the reason we no longer have an F1 race in north america! FOTA members always wanted to race in the US and Canada. How did it come to pass that the biggest market (North America) for BMW, Mercedes and Ferarri does not have an F1 race! The greed of Bernie who demands so much from the promoters that the only way many venues can afford a place on the F1 schedule is with government funding. All the while Bernie extorts the holy shrines of F1 racing (Silvestone, Spa, Monza) for more money.

Then there's Max... Bernie's puppet at the FIA. The idiot that came up with the idea for groved tires. The same Max who likes to dress up like a Nazi when he visits his favorite cat house.

My hope is that FOTA stands firm and we can be rid of Max and Bernie once and for all.

Mike

[dabull1]

YAWN... where's Michel Schumacher when you really need him? Bull out!

[koogzah]

Wow, 1538 words in the original post. You guys really need some wind down south. Our hearts go out to you and your families.

[trey]

Hi Gregor,Trey here. Now you understand why I like GT class better.I'm in my new M3 and don't even give Frmla1 one minute of my attention.I just wish that I could give windsurfing some of my attention.

[DanWeiss]

As Bob Varsha put it in yesterday's 2nd practice: "How would you like to be known to history as the person who killed Formula One?"

Max "Jackboots" Mosley may find out.

[gregorvass]

This Just in! ( I never write only cut and paste)

Maybe No Worries!

A day after eight teams announced that they would not compete in the FIA Formula One World Championship next season but form their own independent series, commercial rights CEO Bernie Ecclestone has now said that major teams should not be subject to a budget cap next year.

While saying that Max Mosley has done ‘a lot of good things’ for Formula One, the F1 Chief Executive's new admission undermines the FIA President's position but could potentially end the breakaway threat. Ecclestone however has no power to dictate the rules to the FIA.

"I say, provided they confirm they will be in the championship for five years, they can spend what they like," the 78-year-old said at Silverstone on Saturday.

Ecclestone did not say how dropping the budget cap provisions would affect the small teams that have signed up for 2010, including new entrants Campos, US F1 and Manor. But clearly the Briton is most concerned about the big names including Ferrari and McLaren, who looking to establish a rival series.

"I have some sympathy for the teams.
Click here to find out more!
Nobody wants to be told how they can spend their money," Ecclestone told the BBC.

The international media overnight reacted with concern that the crisis could irreparably damage or even destroy F1.

"It's an ugly fight, like an aristocratic family arguing about silver cutlery," said Italy's La Gazzetta dello Sport.

The French daily Aujourd'hui added: "War has broken out between the FIA and FOTA, and Formula One will pay for it."

And Austria's Der Standard said: "So far neither Max Mosley nor Luca di Montezemolo have lost face, but the loss will be on both sides if Formula One disintegrates."

[gregorvass]

[mikecole]

FOTA and the FIA reconciliation…

http://www.autosport.com/news/report.php/id/76498

Mike