Bernie Ecclestone’s FOA has responded to the FOTA press release yesterday in which he specifically denies owing any teams money. It seems that Bernie is paying a few teams some cash for continuing to compete under the Concorde Agreement even though it has expired and that “certain” teams did not sign that continuance deal. Presumably Renault, Toyota and McLAren one would venture to guess. That being said, it if particularly interesting to note that FOA is suggesting that the teams sign the deal and he will pay them some money and most importantly Bernie says that the FOA has no relationship with FOTA. He only deals with individual teams. This the most telling of all statements to be sure.
Bernie doesn’t want to deal with FOTA only the teams. He sounds less than excited that FOTA chose to answer the situation in the press on behalf of those teams who haven’t been paid.
Formula One Administration Limited (‘FOA’), the commercial rights holder of Formula One,
wishes to clarify and correct inaccurate and misleading statements made to the media yesterday
by “FOTA”:
In particular FOTA claimed that monies are owed by CVC (FOA’s controlling shareholder) to the
teams for the 2006, 2007 and 2008 Championship seasons. Neither CVC nor FOA owes any
amount to any team.
The contract between the commercial rights holder and the teams competing in Formula One, the
so-called Concorde Agreement, expired at the end of 2007. All prize fund entitlements payable to
the signatory teams under that arrangement were paid when due.
FOA has made new contracts with various teams currently competing in the FIA Formula One
World Championship on an individual basis, whereby the team has committed to participate in
the Championship for an agreed period in return for which FOA has agreed to pay a share of an
annual prize fund generated from and calculated with reference to its profits. Each of these teams
has been paid its full prize fund entitlement to date.
A few teams have yet to enter into a contract with FOA concerning their participation in the
Championship, notwithstanding which FOA has made substantial payments to each of them on
account of future prize fund entitlements they will have when they sign a contract, demonstrating
FOA’s goodwill and intent to conclude a new arrangement with them.
FOA welcomes that the teams are engaging in constructive discussions to progress a new
Concorde Agreement that will encompass all teams. FOA looks forward to finalising and
concluding that contract with the teams in the coming weeks, at which time they will be paid
whatever their entitlement will be under the new arrangement.
FOA has no relationship with FOTA. It has always had a direct relationship with teams and will
continue to do so.London, 27 March 2009
Enquiries to: Office of Mr Bernie Ecclestone, Group CEO
So will the teams announce they do not have a relationship with FOA; only through FOTA will they continue to do so? The plot thickens.
