Ferrari, FOTA and the FIA 13/05/2009 Although the Ferrari board's announcement that they will not be signing up for next season if the rules for 2010 remain unchanged sparked heated debates in the F1 world yesterday, it was not exactly unexpected. As I have pointed out before, the proposed two tier system with optional budget cap is completely unworkable for the manufacturer teams and they have no option but to insist on changes or leave the sport. Toyota has made a definite statement that they will not participate unless a suitable compromise on the rules is agreed and now Ferrari has confirmed that the team will find something else to do rather than submit to Mosley's plan. And today Renault has announced that it too will go.The last F1 Ferrari?Red Bull has said that its two teams will not be signing up before the May 29 deadline for 2010 entries and BMW has also registered its discontent. McLaren and Mercedes have kept very quiet, understandably so since they have experience of the FIA's vindictiveness when crossed, but I have no doubt that they are backing FOTA in its resistance to the new regulations.That leaves Williams, Force India and Brawn GP who will register for next season and we can probably add USF1 (or whatever it is calling itself at the moment). The other allegedly interested parties cannot sign up until they know what is happening and whether the 40 million sterling budget cap can be relied upon. Max is faced with the possibility of F1 being reduced to a four team sideshow.Some commentators are suggesting that this is all just a game of bluff and bragadoccio but make no mistake, this is the big one, the showdown that we have been awaiting for years. Ferrari, Toyota, Renault and Red Bull are deadly serious in their threat to leave and nothing but a capitulation by the FIA will satisfy them. In a nutshell, they have had enough of Max's nonsense.This is made clear in Ferrari's statement that "The Board also expressed its disappointment about the methods adopted by the FIA in taking decisions of such a serious nature and its refusal to effectively reach an understanding with constructors and teams... The rules of governance that have contributed to the development of Formula 1 over the last 25 years have been disregarded, as have the binding contractual obligations between Ferrari and the FIA itself regarding the stability of the regulations." Other teams too have pointed out their disgust at Mosley's dictatorial methods of inducing changes in the sport.Ferrari and FOTA have reached the sticking point and Max Mosley's position becomes a part of the debate as a result. He must either accept that he cannot have his way this time or face removal as FIA president in the ensuing catastrophe. If he sticks to his guns, the manufacturers will leave and the FIA will have a pathetic shadow of F1 to present to the world next year.At that point, the FIA will have to admit that he has destroyed the jewel in the crown and replace him. Any successor would have to institute a completely new F1, sufficiently to Ferrari's liking to induce their return. The other manufacturers would not come back, however, and it would be many years before the sport regains its status as the pinnacle of motor sport.As F1 fans, we must hope that the FIA delegates realize in the forthcoming negotiations how Max has endangered its premier series. They have a convenient lever on him in that the elections draw near and Mosley will undoubtedly expect another term as president. If they have any foresight and courage at all, they will use this power to force a more reasonable attitude upon their self-important president.In fact, Mosley may well have ensured that he will be deposed when the election takes place. The mere fact that he has brought F1 to this pass should be enough to make delegates doubt his continuing suitability as president. We may even witness a similar scenario to Ron Dennis' departure from the sport, with Max having to make good his promise not to stand for another term; indeed, if the teams have any sense, they will make that part of whatever deal is hammered out.So be of good cheer, fellow enthusiasts. This battle has been coming for years and its outcome will decide whether F1 survives in recognizable form or not. The odds are that good sense will prevail, the two-tier idea be thrown out and its inventor with it. It is a shame that it has taken the possibility of the sport ceasing to exist to bring this about but the prize is worth the risk.Oh, and get ready for yet another betrayal of his friend by Bernie Ecclestone. He knows perfectly well that he cannot extract enough money to pay his employers should F1 be reduced to a ghost by a mass departure of teams; he will dump Max when the time comes.
Clive
Bluray I sure do hope that Max's cronies exercise some judgement this time around unlike the previous occassion when they gloriously lived up to their billing. Date Added: 13/05/2009
Clive That's the thing though, isn't it, Bluray? On past experience we really can't hold out much hope of common sense from the FIA delegates. Date Added: 13/05/2009
David So, hope looms on the horizon at long last!Ferrari + Red Bull + Toro Rosso + Renault + Toyota = 10 cars gone, with another 4 still sitting on the fence in way of (Mercedes led) McLaren + BMW - who will both opt to go along with the other manufacturers should we be fortunate enough to see this occasion arise. So 14 cars in all. It really couldn’t get much better since, by example, all 7 of these teams wish to compete in the highest echelon of motor sport and therein lies the core component for an alternate series, hopefully devoid of the politics, financial parasites and power hungry elitists that make this current series so unpalatable to so many. The only fly in the ointment is, once again, your friend and mine, mad Max himself. If only there was some way to ensure that he would stand firm on his budget cap this would be a given, for surely the FIA delegates will support Mosley all the way down the line - if only to support their own miserable butts in doing so.Come on Max, finally do the honorable thing and stand firm! Here’s the chance to redeem your past indiscretions and show the world that you are indeed a real man! Date Added: 13/05/2009
Clive And BMW is said to be about to release a similar statement, David.I would agree with you totally except that I do not think the manufacturers would set up an alternative series. They are subject to the parent companies and the boards would not be interested in the expense and complication of such a course of action. Much more likely is that they will shrug, tell themselves that they were going to get out of F1 anyway and look for another medium entirely to advertise their products. Only Ferrari would want to keep going in motor sport and they will merely spend a year in another series before returning to a chastened F1.Our best hope is that Max resigns or is kicked out and the FIA come to an agreement with the teams. That way, F1 will continue as the best sport of all and proceed down a much more sensible path towards cutting costs. Date Added: 13/05/2009
John Carroll - San Clemente, CA Clive - Fantastic job on your blog. I agree with you, this is the big one, but I think this war is really about money and specifically Bernie and the Commercial Rights Agreement. The two tiered rules changes are a canard designed specifically to split the teams, a tactic Bernie has used repeatedly (and most successfully) in the past. What is at stake here is a complete overhaul of the commercial rights agreement and the teams wanting more control over it (hopefully a return to North America) and the cash distributions coming out of it. I don't see Ferrari getting bought off this time around. And you are absolutely right - Max is toast.JJC Date Added: 13/05/2009
Clive Thank you, John.I agree that money has a lot to do with the current battle but I think Max may have upped the ante beyond what Bernie is prepared to pay. The debate has shifted slightly to focus on the government of the sport and this Bernie cannot want - the status quo allows him to keep milking the F1 cow without interference from the teams.Yes, the teams want a complete re-design of the way F1 is governed and that includes the distribution of profits. But no, Bernie never meant it to go this far and he must be fouling his underwear at the prospect of losing Ferrari, let alone so many other teams.I think we are witnessing the end of the Max and Bernie era. Date Added: 13/05/2009
isde97 Never underestimate Max's ability to survive.Never underestimate the ability of the teams to crumble under pressure.That said, it does look like the teams are developing something resembling a backbone. This is going to be interesting. Something has got to give, and both parties (Max and FOTA) have a lot at stake and not much room for backpedaling and not be terribly weakened. Date Added: 13/05/2009
Clive Whilst Max has survived so far, it only takes one fall to do away with him for good. Previously, his divide and rule tactics have worked but the teams have become wise to this and know that they need to be united in their opposition to him. FOTA has demonstrated that it can remain together, even through such contentious issues as the double diffuser controversy and I believe this will continue as they attempt to knock some sense into Max's head.What many people are missing is that Ferrari and the other manufacturers are no longer "threatening" to leave the sport; they have committed themselves to leaving if the rules are not changed. That is no bluff - they can survive without F1 but the sport, in its present format, will be mortally wounded if they leave. Max has at last gone too far. Date Added: 13/05/2009
aracerdude Is it possible Max is ready to retire now?His personal life has been a shambles the last year and a half with the sex scandal and his son passing away recently. At some point, he must say enough is enough and retire to quieter times. Date Added: 13/05/2009
Clive Max enjoys power so much that I think the teams will have to use a crowbar to prise him out. Date Added: 13/05/2009
Steve Ellis I hope this is the beginning of the end for Max. His arrogance is beyond belief as is his heavy handed tactics. Apparently he is under the illusion that people tune in to F1 to see him and not the teams racing. This guy needs to be given the bums rush right out the door. I hope the FOTA teams stand together. This will be the only way to jettison "Der Fuehrer". As the saying goes, the apple doesn't fall far from the tree. Date Added: 14/05/2009
Clive I have been hoping for the departure of Max for years. He really should have been forced to resign over the sex scandal of last year and the teams must be regretting now that they did not put up a stronger effort against him at the time. But yes, I think this two-tier plan of his will prove the straw that breaks the camel's back. I will be very surprised if he is still FIA president next year. Date Added: 14/05/2009
Leslie This is about the Car Makers, not the F1 teams they own. Those Car Makers all have very serious problems at the moment, and their boardrooms are full of people trying to make sense of a problem they haven't faced before: nobody is buying their cars! Their F1 teams are a small nuisance by comparison.I believe they are serious in their intentions to withdraw, they can't afford to posture at this time, and when they go so will all the engine supply with them.Perhaps this is the big opportunity for the FIA, upgrade F2, add Cosworth engines and lo and behold we have the new F1. Back to business and a cosy new deal with Bernie. All powerful Mosley back at the top, no loyalty to previous "friends", and CVC protected.I know this sounds extreme but it could happen......... I really hope not!Cheers......./Leslie. Date Added: 14/05/2009
Leslie Oops....got that in twice somehow Date Added: 14/05/2009
Nick Goodspeed If the manufacturers leave, they will sell off their F1 holdings much the way Honda has. The engine makers and technology will go back to being privateers, the way they were before the manufacturers bought them up. More than likely some will unite. The frightening part is that if they leave, it is possible that Mosley could conceivably remain, and pollute what is left over.Long before the big manufacturers got involved with F1 Ballestre (don't know about the spelling) tried throwing his weight around and this led to politics which led to strikes! If the manufacturers pull out and Ecclestone goes bankrupt that will leave Mad Mosley in the vacuum, trying to coral the remains! Date Added: 14/05/2009
Peter Boyle Bernies role is unclear.I suspect he has mistakenly been hoping to push downthe CVC payments to teams in all this and maximise thereturn. CVC has a huge debt to clear on this.His comments about the teams are businessesthat should be wanting to make a profit stink. We all knowthat if the teams start sitting at +100million p.a. he willcut the payments.He's misjudging it though - the huge turnover in F1 wasthe source of the huge value he paid for the rights, and getspaid for the TV rights.He can't continue to skim billions out of the pot when theactual costs are much lower. It's not tenable and thetv markets wont suffer it. His pushing to decrease theturnover in the teams is going to reduce his chance of payingback the CVC debt. Date Added: 14/05/2009
Lee Knowing someone at Ferrari, I can tell you that they are very serious about this whole thing. There is also a possibility that they will take over another race series to convert it into a new F1 (A1GP?) using the existing logistics and tracks etc. I wish all the circuit owners would also get together and smash bernie into the ground too as it is unbelievable that they have to pay so much in order to simply host the events! There is a new circuit in portagul which cost somewhere in the region of £2billon including all the motorway links etc, if they hosted f1 they could not possibly make that back, however other race series do not put the same demands on them, they had A1GP there last week for instance. If silverstone had not had to pay so much for f1 I am sure their upgrades would already be in place.Max has gone a step too far this time. Date Added: 14/05/2009
Lee *PortugalI am very tired today............... Date Added: 14/05/2009
donwatters It does indeed look like it's showdown time at the OK corral for the sport. The question is: Will the teams just settle for a higher budget cap, or will they try to negotiate a new Concord Agreement with more money for the teams at the same time? It sure looks like Max has painted himself into a corner this time...although he seems to have more lives than a cat. I truly hope this time he gets what's been coming to him for a very long time. As for B. Ecclestone, he must be scared to death and doing everything he can to get Ferrari back on board. If he can't get Max to make the necessary concessions, I'll bet he'll join the teams in setting up a new series. He's no dummy. Greedy, but no dummy. Date Added: 14/05/2009
Nick Goodspeed The teams hold the cards. Ecclestone is dead without them. Mosley is a puffed up blowfish with a Caesar complex. The manufacturers don't need F1 but they do need the banks to loosen their pocketbooks so people can start buying cars. Perhaps, if the manufacturers would go to the banks, they could get rid of the parasitic Ecclestone and Mosley in one fell swoop and come to a far more useful arrangement then the one that has made this mess. As far as I can see the Concorde Agreement is no longer binding. Neither the FIA nor Ecclestone have acted in good faith. Date Added: 14/05/2009
Clive Leslie: Agreed that the manufacturers can pull out and feel nothing - the accountants will be happy too.But F1 without them will not be the same, even with memories of the Cosworth era making us dewy-eyed. The bottom will fall out of viewing figures as all the tifosi and casual fans depart and Bernie won't be able to squeeze out enough money to service CVC's debts. Max will be left with a series that no longer has any claim to be premier amongst motor sports and the FIA will be reduced to organising races that hardly anyone watches. Date Added: 14/05/2009
Clive Peter: Agreed, but Bernie will always try to get more money out of everyone. i guess he can't break the habit of a lifetime. Date Added: 14/05/2009
Clive Nick: A terrible scenario! Hopefully, everyone will come to their senses before that. Date Added: 14/05/2009
Clive Lee: Reading between the lines of the Ferrari statement, it looks as though that is exactly what they are thinking of. They will have no trouble finding another series to enter until the time comes when it is right to return to F1. As I said before, this is no bluff! Date Added: 14/05/2009
Clive Don: The one thing that all the teams' statements seem to have in common is the demand for different government of F1. I take it that this means they are serious about getting rid of Max this time and a mere adjustment of the budget cap is not going to be enough to buy them off. Max should be packing his bags now. Date Added: 14/05/2009
Clive Nick: The Concorde Agreement has been ignored by so many parties so often since its expiration that I think we can take it as no longer in force. The gloves are off and there will be one heck of a fight before all this gets sorted out. Incredible to think that this is supposed to be a sport... Date Added: 14/05/2009
marc No one can deny that the current crisis is the doing of Max. It is equally apparent that Ecclestone must try to resolve this situation because F1 as a business model will fall apart. With Ferrari as the only exception, manufacturers don't feel a need to be involved in F1. But there is nothing that will force either of these characters to change how they do business.There is simply no leverage. The FIA president is chosen by delegates who have little or nothing to do with F1 and its political machinations. A repeal of the cap would breath life back into F1 but then Bernie would maintain his current pay structure. In short, the only outcome is either the complete implosion of F1 (which has no direct consequences for Max's presidency), or a compromise on the cap and a continuation of F1 (which still has no effect on Max's presidency).If you think it is impossible that Max could survive the implosion of F1 or that it is even conceivable for F1 to continue in some hollowed out form, I direct your attention to WRC and the fact that there are currently only two manufacturers left and both are supporting several top tier customer teams (just to fill out the field). It is a complete joke, and I fear F1 could be headed for the same result. Date Added: 14/05/2009
Clive I would agree with you, Marc, except that F1 is much more important to the FIA in that it brings in the bulk of its revenues. F1 also gets far more coverage in the media and this particular story is dominating the headlines - the delegates must notice. Whilst they may not understand anything about the sport, they do understand profit and loss; if Max ruins F1 as he has done the WRC, you can bet he won't be in office much longer. Date Added: 14/05/2009
gaetano marano .brilliant idea to solve the Formula 1 "fixed budgets" disputehttp://www.gaetanomarano.it/formula1/002abetterF1.html. Date Added: 15/05/2009
Clive Gaetano: It seems a very complicated solution to me, involving as it does a three-tier system. I think the argument has moved on to the governance of F1 anyway and that the real battle will be over who runs the show. Date Added: 15/05/2009
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