Formula 1 Insight

Mosley and FOTA Negotiate
11/06/2009

Autosport has reported that Max Mosley is meeting FOTA representatives today in a last minute attempt to reach agreement over the F1 rules for 2010. This is very likely to end in a compromise that ensures the continuation of the sport as we know it with an entry list that includes the FOTA teams and the most viable of the aspiring new entrants (my bet is USF1, Lola and Prodrive). Extracts from Mosley's latest letter make it clear that there is little separating the two sides now and it would be foolish not to take those few steps necessary to reach agreement.

Max Mosley
Max Mosley

The significant break in the deadlock actually occurred yesterday with a statement from Ferrari's Stefano Domenicali. This was in response to legal threats from both Mosley and Bernie Ecclestone and it made clear that the Scuderia was not intimidated and would not compete in F1 if it did not want to:

As always, we will do all we can to find a solution that is acceptable to all parties. If this is not possible, then the FIA will not be able to include Ferrari in the list of teams entered for the 2010 FIA Formula 1 World Championship.

The bluff was called, in effect. Most telling of all was that the announcement was made by Domenicali, not Luca di Montezemolo, and that Stefano will also be Ferrari's representative at the meeting today, along with Toyota's John Howett and Christian Horner of Red Bull. Since Luca is the man with the final say, this means that Ferrari's position has already been decided and Domenicali instructed in just how far he can go and what concessions he can make.

Despite Mosley's assertions that F1 does not need Ferrari, both he and Ecclestone know that is not true; it is the one team whose presence or otherwise could have a major effect on F1 income. Domenicali's statement effectively ended all the posturing and Mosley has been brought to the negotiating table.

There are three important concessions apparent in Mosley's letter. The first and the most important is that he is now talking in terms of a budget cap as high as 100 million Euros, with a commitment to bring that figure down to 45 million Euros in 2011. That is very close to what FOTA has been suggesting, especially if we include the second important change in Mosley's stance: a renaming of the cost cap.

It may seem a cosmetic alteration in wording, but the fine point actually indicates a willingness to escape the need for some form of audit on the teams' finances. Were it changed to "agreed guidelines", for instance, the cost ceiling would become a matter of honor rather than FIA inspection and that is all FOTA has been asking for.

Finally, Mosley has given broad agreement to the institution of a new Concorde Agreement based essentially on the version proposed by the teams. In the long term, this will go some way towards mending the governance of F1, another major factor in FOTA's stand against Mosley's original proposals for the 2010 regulations.

If Max honors the concessions he has made, it really ought to be possible to hammer out an agreement today. The sole fly in the ointment may prove to be Ferrari's unwritten agenda of getting rid of Mosley himself. I cannot see Luca holding out for this, however, and so I quite confidently expect an end to the war to be announced later today. We can breathe a little easier, I think.

There remains a strong possibility that one or more of the manufacturer teams may still withdraw from F1 at the end of the year. Renault's recent statements have been quite aggressive in demanding a greater share in revenue, something Bernie is not prepared to consider at the moment. With Renault's commitment to the sport always a little dubious, it would be no surprise to see the team end its involvement and to become an engine supplier only.

Toyota have made it clear in the last week or so that they want to continue in the sport if at all possible. This makes sense when the improvement in the team's fortunes this year is taken into account, together with the cutback in costs that F1 will see in the near future.

Hopefully we are watching the final act of the political drama that has brought F1 into such disrepute this year. All of the parties involved are agreed that the squabble has been detrimental to the sport and so we, the fans, must insist that their differences be healed today. We are sick of our sport being so badly handled and demand that its future be secured for the benefit of all.

And, please, Mr Mosley, do not even think of standing for another term...

Clive

verasaki
"And, please, Mr Mosley, do not even think of standing for another term... "

That is what I have been mulling over these last few weeks. Isn't the election this year? When does Max actually have to officially put his hat in the ring? I can't imagine anyone really wants him around much longer but, unfortunately I have no faith in the FIA itself at this point.


Date Added: 11/06/2009

Clive
Vera: The election is in September this year but I have no idea by what date candidates have to register or whatever it is they do. Max says he has had plenty of people ask him to stand again but that probably means the toadies who supported him in the vote of confidence. Like Bernie, Max has a tendency to invent figures as he goes along.
Date Added: 11/06/2009

Journeyer
Joe Saward of Grandprix.com sees it rather differently:

http://joesaward.wordpress.com/

I hope you're right and he's wrong this time...
Date Added: 11/06/2009

Clive
Journeyer: Joe is really looking at the possibility of a rival series being set up. That is only going to happen if there is complete deadlock and, even then, it's unlikely. Most of the teams would just shut down, Ferrari go to another series and two or three return to Max's F1. Neither side really wants that.

It is in everyone's interest to sort out some sort of compromise and it looks as though that is what is happening today, for the reasons I gave. Max has as good as abandoned his original position and there seems no reason to continue the fight, therefore. It's a win for FOTA but can be dressed up enough to hide Max's embarrassment.
Date Added: 11/06/2009

Nick Goodspeed
When one has a cancer (Mosley) and the surgeons don't get all of it, what happens? The teams that jump the FOTA ship are not doing themselves any favours. If, in the end, all that is left is Ferrari, Mosley and / or Ecclestone will probably bribe Ferrari as they have before. As far as a budget cap being a point of honour......how long has Monty Python been involved in the sport? Ferrari doesn't do honour, they do glory. They are holding out until they can barter for an advantage. If they don't get something to weigh the scales in their favour they will very likely go find some other series they can dominate. In Italy, to work for Ferrari and not win, is a cardinal sin, maybe worse than getting caught in a sex scandal. To work under those conditions makes honour and fairplay awful pricey commodities.
Date Added: 11/06/2009

Clive
Nick: Ooh, a bit cynical about Ferrari there, I think. Maybe I'm a diehard optimist...

I don't see FOTA's remaining teams breaking ranks unless Ferrari does and, this time, I think Ferrari are taking the honourable course. Luca seems to have decided that Max is not worth whatever benefits the team have had over the last few years and he wants to get things back on an even keel. We have to hope that is so if we want our sport back in recognisable form.
Date Added: 11/06/2009

Fractal
I thought Max has said he would be going at the end of his tenure? Surely he is a man of his word?

- I am an innocent in the ways of political intrigue... ;)

AFC
Date Added: 11/06/2009

donwatters
First of all, Max has said before he wouldn't stand for reelection and gone back on that promise. I'm assuming that if indeed a settlement is reached with FOTA, Max will take credit for it and use that as a rationale (The FIA can't get along without an experienced hand like me) to go for another term. Shameless!

Second, it does appear that Ferrari is taking the moral high road in this situation...and I applaud them for it. That said, the comment about working for Ferrari and not winning is a cardinal sin is pretty much on target. I suppose that's why they call it a serious competition rather than just a game
Date Added: 11/06/2009

Clive
Fractal: Innocent indeed! Would Max really be as difficult as he is over 2010 if he were really contemplating ending his term as FIA President?
Date Added: 12/06/2009

Clive
Don: Max always manages to take the credit, whatever happens, doesn't he? I am sure that once agreement is reached and all his proposals have been thrown out, he will emerge as the gallant victor and savior of F1.
Date Added: 12/06/2009

Nick Goodspeed
I'm afraid Ferrari probably won't bend to Mosley's will. If they do they may not win a championship for a long time. They are used to having an advantage over the other teams, weather it be their private track, huge backing from Fiat & Family, payola from Ecclestone or strong arm tactics on their closest rivals by Mosley. If they have none of these perks life in Italy will become near on unlivable for the horsemen. If funds and resources are limited it will become very difficult to catch anyone who begins the season with an advantage, as we are seeing this year. They can ill afford to settle for the mediocrity that would seem to be in Mosley's definition of the future. Unfortunately if Mosley lets in a bunch of underfunded teams he will have no choice but to dumb down the whole thing to the new teams level. If he wants an even playing field for all the Johnny-come-latelys, he's going to have to create something akin to a lottery where true potential and expertise cannot be deciding factors. Ferrari won't play this game. If they do, they are no longer Ferrari.
Date Added: 12/06/2009

Clive
Nick: Which is exactly why it is so important that FOTA win this one. Mosley wants a spec F1 and is well on the way to achieving it, whereas the teams want to continue to compete in the time-honored way. If F1 is to survive, FOTA must win.
Date Added: 12/06/2009

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