Max Mosley

Marlboro McLaren becomes McLaren Nicorette, COTA business plan highly optimistic, Lewis leaving was all about the money, Austin Council votes to tax COTA, New F1 film for release in Austin

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Vodafone scale down sponsorship:  It has been widely rumoured that Vodafone will be pulling out of its 6 year relationship with McLaren at the end of 2013. This has been considered to be worth as much as $75m a year, which is stratospheric compared to the fee’s most sponsors of F1 teams pay. Joe Seward has done a great article on this today, the link is at the end if this section.

The points worthy of comment are, Glaxo Smith Klien (GSK) has been extending its relationship with McLaren, and in a big announcement in the summer the announced a “ground-breaking collaboration” which will apply McLaren’s winning expertise to the needs of GSK, the aim being to help it to function more efficiently with more efficient planning processes and better modelling tools to drive faster decision-making. This includes the construction of a learning facility called the ‘McLaren GSK Centre for Applied Performance’, which is under construction at McLaren’s Headquarters in Woking.they announcedis setting up.

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Ferrari in breach of FIA statute 1

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FIA Statute 1 and  a previous breach

Statute 1 of the FIA constitution states that the federation will refrain from “manifesting racial, political or religious discrimination in the course of its activities and from taking any action in this respect”. This does not apply just to the executive, but to all participants of the federation.

The last time that statute was enforced was in 2006 when the promoters of the Turkish GP decided at the last minute to put forward Turkish Cypriot leader Mehmet Ali Talat to award a prize on the podium at the end of the Turkish Grand Prix. Mehmet’s official title was displayed on the TV as “the President of the Turkish Republic of Northern Cyprus”. This breakaway area of the island of Cyprus is not recognised by the International Community and the Cypriote government filed a complaint with the FIA.

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Resource Restriction ‘Agreement’ – You’ve got to be joking

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Try and find the RRA?

What is the Resource Restriction Agreement (RRA)? Try Googling it, try searching the mainstream F1 media sites, try Wikipedia, try even asking senior team F1 personnel. There’s plenty of articles to be found where F1 people are for it, against it and mostly there is an agreement that costs should be controlled. Yet there is nothing out there that defines the scope of the RRA.

Formula 1 has in the past been most profligate in the area of spending. Rumours have it that Ferrari in their dominant era were spending $100m a year on tyres that were bullet proof. Honda allegedly spent $1bn during 2008 on the present car and the design of the 2009 car. Ironically following Honda’s last minute withdrawal from the sport at the end of 2008, the car they had designed for 2009 won both WDC and WCC titles under the badge of Brawn GP.

At the other end of the spectrum teams have regularly run out of money and ceased to exist and even more that sell out and change their names due to funding problems. In the last 10 years alone, these teams have gone from the Sport: Jordan, BAR, Renault, Jaguar, Arrows, Minardi, Toyota, Honda, BMW-Sauber, Midland, Super Aguri, Spyker, Brawn and Virgin. So the casualty rate is high, and its mostly to do with a lack of funding.

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A Race with over 300 cars, Lotus developing 3 cars at once, Mallya’s license suspended, more F1 News….

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Mallya: The judge13 has been following more closely than elsewhere the events unfolding that affect the Indian owner of Force India. Having sold a chunk of the Kingfisher empire this week, paid overdue airport dues and had the warrant for arrest withdrawn, Mallya has now had his airline license withdrawn. The suspension signalled the regulator’s lack of patience with Kingfisher after months of cancelled flights and staff walkouts, and marked a rare tough stance by the government against a high-profile corporate (Reuters)

The move had been widely expected after Kingfisher failed to respond properly to queries from the regulator regarding its ability to provide a “safe, efficient and reliable service”. The airline has never made a profit since its inception in 2004, and a well know airline commentator suggests it could take $1bn to turn Kingfisher Airlines around. (Force India: How the card tower will collapse)

Max Mosely: A very plausible and knowledgeable guest on the Sky F1 show admitted the expose of his by the News of the World of ‘spankgate’ weakened his hand in pushing through cost reforms.  In 2003 Mosely, then head of the FIA, cancelled the use of special qualifying cars and engines in a move to level the playing field for the competing F1 teams. He instigated a ‘parc ferme’ following qualifying that meant the teams could not change engines and other components designed to provide ultra 1 lap speed but not be capable of lasting the full race distance.

In 2008-9 Mosely was trying force the teams to agree to a cost cap on expenditure, and Ferrari in particular were refusing to comply, there were threats of a breakaway series and Moseley admits he should have faced them down as he did in 2003. The reason he gave for avoiding all out confrontation was that Williams and Ferrari in particular had supported Mosely during the highly embarrassing matter of ‘spankgate’ and he felt he owed them for this loyalty. So Max agreed not to stand for re-election and the fudged Resource Restriction Agreement was accepted, something Mosely now admits is not working.

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German Indictments imminent for Ecclestone

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Today Suddeutsche.de reports the following.

The German Bank – Bayern LB – that once held the commercial rights to F1 and paid Bernie Ecclestone 41million Euro’s in commission to find a buyer – is looking to recover its money.

We now know this money actually just circulated on to Gerhard Gribkowsky, a board member of Bayern LB, who was apparently tasked by Ecclestone to ensure the bank sell to Mr. Ecclestone’s client – CVC. On conclusion of this deal Gibkowsky received an alleged $44m from for his troubles from Mr. Ecclestone but he is now serving nearly 9 years in a German jail for his part in the collusion. His conviction is for participating in bribery.

Bayern LB have applied to see the records of the Munich prosecutors who won the Gibkowsky conviction saying, “We are preparing everything to make possible damage claims.” The prosecutors are apparently more than inclined to offer these files up, however, it appears lawyers for Mr. Ecclestone have sought an injunction with the Munich District Court to prevent this.

This may not be the only troubles on the horizon for Mr. Ecclestone, as representatives of Ruth Kirch, widow of the late media tycoon Leo Kirch, also wish to lodge a half a billion dollar lawsuit against Mr. Ecclestone. Kirch used to be the main shareholder of the F1 commercial rights before entering into loan arrangements with Bayern LB offering the rights as collateral.

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