Car makers set pace for Formula 1

Plans for a rival series would strip F1 of star names like Michael Schumacher

By CNN.com's Simon Hooper

LONDON, England (CNN) -- Plans by car makers to form a racing series to rival Formula 1 mark the first salvo in a corporate squabble for control of the world's most lucrative racing circuit.

Tuesday's announcement by Fiat executive Paulo Cantarella, President of the European Automobile Manufacturers Association (ACEA), was in direct response to German media company Kirch's bid to buy control of television rights from F1 supremo Bernie Ecclestone's company, SLEC.

Ecclestone, who entered F1 in 1970 when he formed the Brabham team, is the man almost single-handedly responsible for the sport's transformation from a pursuit for ex-fighter pilots racing between hay bales into today's globally-televised millionaires' circus.

But, at 70, Ecclestone has started to relinquish his grip. Kirch already owns a 50% stake in SLEC and its $987.5 million bid for a further 25 percent from Ecclestone, approved by the German monopolies commission, would effectively make it F1's controlling interest.

That situation is unacceptable to ACEA, which fears Kirch's plans to charge viewers for F1 coverage would reduce the sport's global audience and limit the exposure which its members currently enjoy.

"The constructors are the protagonists in Formula 1, they provide the raw material for the sporting event and the spectacle. And so they would like to be able to run everything more directly," said Cantarella.

ACEA's simple strategy for gaining more control lies in its threat to withdraw the sport's star names.

Fiat owns Ferrari, the home of current world champion Michael Schumacher and the name most synonymous with F1; Daimler Chrysler's Mercedes is in partnership with McLaren, Renault owns Benetton, BMW supplies Williams' engines and Ford races as Jaguar.

Furthermore, the Federation Internationale de l'Automobile (FIA), motor sport's governing body, has announced it would have no reservations authorising a new series.

FIA president Max Mosley said: "If they do start a series, providing their cars are safe, we would sanction it in the same way as we would sanction any other series."

At this stage though, ACEA's announcement appears to be a publicity exercise to ensure the manufacturers are not ignored when, following Ecclestone's retirement, control of F1 is carved up between interested parties.

The Concorde Agreement, a long-standing deal between F1's constructors and administrators to respect the existing structure of the sport, runs until 2007 while SLEC's ownership of television rights expires in 2010.

A similar split in the USA has also proved damaging to American motor sport.

In 1996, the Indy Racing League was formed as a result of a breakaway from the established CART series. While leading drivers and teams remained in CART, the most prestigious race in the American calendar, the Indianapolis 500, went to the IRL.

But the schism has damaged the standing of both series. NASCAR stockcar racing has become far more popular domestically and F1 regularly poaches drivers like current CART champion Juan Montoya.

ACEA would be reluctant to initiate a similar erosion of F1's status, which could prove even more damaging to its members than Kirch's bid for control.

"We want Formula 1, together with its entire heritage, to continue with order, technological development, clarity of rules and maximum visibility," said Cantarella.

F1 carmakers want to form rival circuit
Wednesday April 04, 2001
Ecclestone now says there are no plans to leave F1
Friday February 02, 2001

FIA
Formula One Supporters Association

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