FOTA to setup a new series - deal with FIA reached

[Ed]

The FIA sticks to the deadline and will publish the 2010 F1 Entry list tomorrow

FIA statement:

The FIA has noted the latest press statement from FOTA.

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.

The FIA cannot permit a financial arms race in the Championship nor can the FIA allow FOTA to dictate the rules of Formula One.

The deadline for unconditional entries to the 2010 FIA Formula World Championship will expire this evening.

The 2010 FIA Formula One World Championship entry list will be announced tomorrow.

[Maksutov]

FOTA have announced that they will be setting up a new series after negotiations with the FIA and FOM failed to reach a compromise. Is it the right move ?

Full FOTA press release

FOTA UNITED ON THE FUTURE

Silverstone, 18 June 2009 - 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.

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 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. 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.

Statement issued by FOTA on behalf of BMW-Sauber, BrawnGP, Scuderia Ferrari, McLaren- Mercedes, Red Bull Racing, Renault, Scuderia Toro Rosso, Toyota.

OK! Now we are talking! The FOTA have acted the way they should have, and good on them. I have a feeling that this is not yet over!. But if the new series is indeed to form, then it is the best thing that can happen under the current circumstances.

This is what is needed for the world to realize that one man Max Mosley needs to either leave or he can race F1 with himself and his other small little teams.

[Maksutov]

So the Rubicon has been crossed...........couple of questions now loom:
(1)Will this new series be able to attract sponsors?
---One of the lessons of the CART/IRL split was that, once the split began in earnest, most every sponsor of note left the sport or left CART for the IRL(or more precisely, the Indy 500)....will sponsors follow FOTA or will they remain with Formula 1 as it currently stands?

(2)Will they be able to get sanctioning for their events?
---When the C/I split occurred, one of the first things CART's directors did was go to both the FIA and ACCUS* and attempt to get them to deny the IRL sanctioning for their events including the 500
*--ACCUS: Automobile Compeition Committee of the United States; one of two representatives from the U.S. to the FIA, the second being AAA, the American Automobile Association

(3)Will this new series be able to attract venues?
---Unless I'm mistaken, for a racing venue to host international grand-prix level racing, they have to be certified(or homologated) by the FIA just as motorcycle venues are certified/homologated by the FIM. I wouldn't put it past Sado-Max and the Dwarf to block FOTA on this one out of spite......

(4)Will fans follow the new series or stay with F1?
---If the CART/IRL split showed us anything it was that when it occurred, some fans stayed with CART/ChampCar through the bitter end, some supported the IRL from the beginning through reunification/ the merger, some supported the Indy 500 separate of the IRL throughout...............the remainder stopped following the sport over the 12-year period and haven't returned in any great numbers. The big risk of any new series is not just attracting/keeping its' core base of fans but bringing in new fans over time. FOTA, at the very least, must keep its' supporters with them or risk them leaving the sport altogether.

(5)Which teams will follow FOTA and which teams will stay in F1?
---When the C/I split occurred, at first most of the big teams(Penske, Ganassi, Forsythe/Green, etc.) stayed in CART while many of the mid-pack/backmarker teams(Foyt, Hemelgarn, etc.) left for the breakaway series. While the circumstances here don't quite fit the circumstances in AOWR, it would be interesting to see if the two FOTA teams that filed entries for 2010[Williams, Force India] stick to their guns and stay in F1 or withdraw their entries and remain within FOTA?

1) Yes they will follow FOTA. Sponsors are not contracted to Formula 1 , they are contracted to individual teams. For example, look at Virgin blue who are still negotiating with Brawn on a sponsorship deal. Another strong point is when Alonso left Renault - the Spanish sponsors immediately followed the driver. This again repeated when Alonso switched back to Renault. Sponsors will follow the teams because they give them popularity and recognition.

2) If it is under a recognized regulatory and governing body then yes. If FOTA wish to form a new governing body then it could get a bit messy.

3) Again , the same applies as #2. But I expect Bernie and Max to try everything and anything in their power to make it hard for FOTA. This can indeed get messy. Bernie has so much power and im sure he is already making blockade plans now.

4) Fans will follow the new series specially so if it is commercially covered and advertised, with full TV coverage and so on - who on earth wants to watch Manor and wth name teams (apart from USF1). I want to see what Alonso, Webber, Hamilton, Kubica.. etc are gonna do. Additionally, fans have developed an attachment to some teams - Ferrari have an enormous number of fans, so do the McLaren and Renault and individual drivers also hold the same. I personally would have liked to see USF1, but if this split occurs I will not be watching that at all. Because I am not interested in a series that is technically and financially controlled by one man, and specially where for example cars are not being refueled !!?!?! That is the dumbest rule.

5) I personally dont think any existing team will follow FOTA. Because they are too scared - this is why Williams split in the first place, and Force India did the same. They are gone, they belong to Max. What I do expect is existing teams to generate perhaps 3 cars, and divide financial revenues in a fair manner that is beneficial even to the small teams. Maybe Lola will join FOTA! that would be nice...

[Maksutov]

Okay, this is drawing on my memory alone, and I will willingly stand corrected. I was young and very busy at the time.
In Australia, one mob ( lets call them Max's Mob) wanted to replace the "Iconic" 5 litre V8s, Ford, Holden(GMH) with higher tech 2 litre tourers such as BMW etc and formed a breakaway entrants group.
Without a lot of the name cars and drivers, it struggled for sponsorship, failed to attract the crowds, and TV audiences dwindled rapidly, at least at my house.
Meanwhile the 5 litre mob (Lets call them the Brawny Bunch) continued to do what they had been doing well, despite having to move their Bathurst 1000 from the traditional holiday weekend due to TV contracts.
After a couple of seasons, I cannot recall how many, the 2 litre series run by "Max' Mob" died quietly away.
The "Brawny Bunch" became more professional each year, til they stand where they are now, with one of the best crowd pleasers in motorsport, and even with the present economic gloom, seem to have little trouble attracting major sponsors.

Same will happen here, because we are talking about Ferrari, Mercedes,.. etc; additionally Ferrari own and/or control quite a large number of circuits in Italy - im sure the existing F1 (controled by Max) will never be welcomed in Italy again, the tifosi will Burn Max Mosley. Italians stick together and they love their Ferrari. And Just imagine how much money Bernie and Max have earned form Italian fans alone - because usually Italy has the largest F1 Audience. Max and Bernie will be left with venues such as Turkey - there was almost no fans/audience there , hence they made no money.

[Maksutov]

Yes Yes Yes

Enough of Mosley, enough

This news made my day .... now if I can get 1 round of picks right

I feel the same!!!

[hairy]

Why has it taken so long? This is the highest form of motor sport, why is there a cap on expenditure? Without the teams or manafactures, there is nothing!

Let the money go into producing the best of the best and let the teams work for the betterment of racing and not a couple of men working for their own agenda.

I hope that this now means that the Australian GP can be run for Australians during an Australian day, and not at 7.30pm Sunday night for our EU fans only!!!

ONE FORMULA

[Maksutov]

Why has it taken so long? This is the highest form of motor sport, why is there a cap on expenditure? Without the teams or manafactures, there is nothing!

Let the money go into producing the best of the best and let the teams work for the betterment of racing and not a couple of men working for their own agenda.

I hope that this now means that the Australian GP can be run for Australians during an Australian day, and not at 7.30pm Sunday night for our EU fans only!!!

ONE FORMULA

good point!

[Julian Mayo]

Why has it taken so long? This is the highest form of motor sport, why is there a cap on expenditure? Without the teams or manafactures, there is nothing!

Let the money go into producing the best of the best and let the teams work for the betterment of racing and not a couple of men working for their own agenda.

I hope that this now means that the Australian GP can be run for Australians during an Australian day, and not at 7.30pm Sunday night for our EU fans only!!!

ONE FORMULA

Bloody oath......

[GCFerrari]

Is all this big enough to get Michael back (please, please, please)

Also, can we hope that maybe they might consider two races on the day (kinda like motoGP) to add to the excitement.

Crazy about the decision - well done FOTA

[Snowy]

Altlhough I really wish FOTA will split, be successful and Max and Bernie burn in hell, I can't help thinking about the lawyer's rubbing their hands with glee. Bernie is very litigious.

I have always considered the fact that half the money that F1 brings in from the circuits, TV, etc, goes straight into the pocket of Bernie and his shareholders. I would gladly sacrifice Formula One to see those guys well and trully shafted.

[Ed]

The FIA launch legal action against FOTA and Ferrari

Full statement

The FIA and FOTA

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.

[Snowy]

I didn't see that coming... Not!

[Maksutov]

The FIA launch legal action against FOTA and Ferrari

Full statement

The FIA and FOTA

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.

The only reason Mosley would do this is because he is certain that he can win. He probably owns the jury. Everything is planed in front with him. Bet lets see what happens. Theoretically there is no way in the world he can win his argument based on the current circumstances. If he does then it is clearly rigged.

FOTA should now ALSO take FIA to court in return for exploitation and interference with financial and technical matters over the past 10 years. There is plenty of evidence. Also there is no court and no law that can force any team let alone Ferrari to allow FIA to snoop into their financial dealings. This is totally outside of the power of FIA.

Clearly Mosley has not only shot him self in both feet but also in the head.

[Ed]

Ferrari issues the following statement:

Ferrari does not intend to comment on the Press Release put out this afternoon by the FIA. However, Ferrari wishes to make it clear that on 15th June last, it already instigated arbitration against the FIA to protect its contractual rights in its dealings with this Federation, including those relative to the respecting of procedures as regards the adoption of regulations and the right to veto.

[Ed]

Max Mosley seem to be softening his position. After stating that Formula 1 can live without Ferrari he is now stating "They (FOTA) can't afford not to run in the championship and we would be very reluctant to have a championship without them"

Mosley has also indicated that he isn't likely to step down as "What you can't do is walk away from an organisation in the middle of a crisis"

It is reported though that the World Motor Sport Council could be asked to vote on removing Max Mosley.

More:
F1 crisis will be solved - Mosley
Breakaway will quash official F1 - Whitmarsh

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