Works continues on new deal with FIA, Formula One teams

The FIA has thrown some light on progress with the new Concorde Agreement, the contract that deals with the commercial arrangements between the governing body, the Formula One group that holds the rights for the next 100 years, and the participants.

The previous such document expired at the end of 2007 and FIA president Max Mosley has since then been resisting efforts by Formula One and the teams to finalize a new contract giving them more influence in the governance of Formula One.

Formula One's majority owner, CVC Capital Partners, is increasingly anxious to get team signatures on a firm contract, and new proposals have been coming from the Formula One Teams Association.

An FIA statement on Thursday continued criticism of the teams.

"The deal that the FIA reached with FOTA in Paris [on June 24] was to extend the 1998 Concorde Agreement with some minor amendments to the governance section. This would have put in place a Formula 1 Commission to deal with future rules with any major question going to the FIA Senate. However, on June 25, instead of the 1998 Agreement with some minor amendments, the FIA received 350 pages of a completely new Concorde Agreement. It being wholly impractical to involve the Senate in such detailed negotiations, the contract was handed over to FIA lawyers, who worked on it tirelessly over the weekend June 27-28 and gave comments during a three-hour conference call on Monday, June 29. Then the 350 pages of June 25 turned out not to be the final FOTA/FOA version and elements of a new version appeared, partly on July 2, partly on July 3. Again, FIA lawyers worked over the weekend on July 4-5, as did FIA president Max Mosley and FIA deputy president for sport Nick Craw. Further comments were then given on a three-and-a-half-hour lawyers' call on Monday, July 6 and again in a conference call yesterday, July 8, following the circulation of further drafts. Further significant progress was made yesterday evening in yet another conference call. At present it seems probable that a final draft of the 2009 Concorde Agreement will be agreed and ready for signature in the coming days."

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Max Mosley meets with Formula One teams as deadline looms

Max Mosley is meeting the Formula One Teams Association team principals in London on Thursday--although it is believed that not all of them may be present--as both sides of the 2010 entry dispute try to hammer out a resolution.

The entry list is due to be published Friday with Williams, Force India and Ferrari (against its will) expected to be on it, and possibly some other teams that have indicated at the last minute that that they are willing to switch to an unconditional entry. The field will be bumped up to 13 by a selection of the new teams.

Mosley's position was made public with the disclosure of a letter he wrote to FOTA founder and Ferrari chairman Luca di Montezemolo on May 26, five days after his meeting with team owners at the Monaco Grand Prix and three days before the entry deadline for the 2010 season. AutoWeek obtained a copy of the letter.

In the letter, Mosley confirms that in 2010, a higher-than-planned cost cap--to a maximum of e 100 million, or about $140 million at current exchange rates--would have to be in place. The cap would be then reduced to the published figure of £40 million, or $65.8 million, in the second season.

This presumably is an answer to those teams who insist they cannot downsize their staffs by next season, and would give them more time to do so.

In addition, the letter confirms that there would be no special rules advantages given to teams that adhere to the cost cap, and that the FIA would help the transfer of "know how" between current teams and new entrants for 2010 and possibly beyond.

There also is the so-called "Adrian Newey rule," which allows one team member's salary to be outside the cost cap, in addition to the drivers.

Intriguingly, the FIA concedes that it is willing to call the new arrangements something such as "financial regulations," as the cost-cap label is not popular with teams.

It remains to be seen whether either side will move far enough in Thursday's meeting to reach a compromise, but there remains a chance that some teams will jump the FOTA ship. Brawn GP and the two Red Bull teams are not hamstrung by the $70 million (e 50 million) penalty agreed to among the five factory teams after Monaco.

MAX MOSLEY'S LETTER TO LUCA DI MONTEZEMOLO

Dear Luca,

As you probably know, Simone Perillo and Tony Purnell have done considerable work on a possible resolution of our current difficulties.

I have now had an opportunity to look in detail at their ideas and to consult both within the FIA and among other actual and potential Formula One stakeholders.

Although it contains much that is useful, the document as it stands is rather too complicated. I hope you will agree that what we need now is simplicity, clarity and above all certainty. Have also reflected carefully on our meeting last Friday we could, at the limit, go as far as to propose the following to the teams which have applied to enter the 2010 Championship.

1. A cap in 2010. This could be as high as 100 million euros, but we must have a cap and we must have certainty.

2. For 2011, again we must have certainty with a cap at 40 million pounds (or, if preferred, 45 million euros).

3. We can agree that all teams race under the same 2010 rules. These would be as published, but with the technical and sporting advantages originally offered to cost-cap team deleted.

4. Instead of these advantages, we will facilitate know-how transfer between certain current teams and new entrants at least for 2010 and possibly for 2011.

5. We can agree that one employee per team in addition to the drivers can outside the cap for 2011 and thereafter.

6. We are prepared to negotiate a new Concorde Agreement along the lines of the partial draft which was sent to us with the teams' letter of 24 May. Our (very) preliminary view is that this draft is broadly acceptable.

7. We are happy to call the cost cap "financial regulations" or any other sensible term, as the teams prefer.

I understand you have a meeting tomorrow. It would be excellent if you were able to agree the above so that we could make a joint announcement.

Yours sincerely,

Max Mosley

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Formula One: Hamilton apologizes, blames suspended team member for incident

Formula One world champion Lewis Hamilton apologized to the FIA, the media and his fans in the aftermath of his disqualification from the Australian Grand Prix results for deliberately misleading race stewards who looked into the events that led to Toyota's Jarno Trulli passing Hamilton behind the safety car with just a few laps remaining in the race.

Hamilton, speaking at a press conference in Malaysia ahead of this weekend's race, also laid blame at the feet of McLaren sporting director Dave Ryan, who the team has suspended for his role in the incident.

"In Melbourne, I had a great race. As soon as I got out the car, I had the television interviews at the back of the garage, and straight away I gave them a good account of what happened during the race," Hamilton said.

"Straight after that, we were requested by the stewards, and while waiting for the stewards, I was instructed and misled by my team manager to withhold information [about a radio conversation regarding letting Trulli by me], and that is what I did. I sincerely apologize to the stewards for wasting their time and for making them look silly. I am very, very sorry for the situation: for my team, for Dave, because he has been a good member of the team for many years, and whilst I don't think it was his intention--he is a good guy.

"I went into the meeting . . . I just wanted to tell the story and say what happened. I was misled and that is the way it went. I would like to say a big sorry to all my fans who have believed in me, who have supported me for years, who I showed who I am for the past three years, and it is who I am. I am not a liar. I am not a dishonest person. I am a team player.

"Every time I have been informed to do something [by the team], I have done it. This time I realize it was a huge mistake and I am learning from it. It has taken a huge toll on me. I apologize to [the media]; I didn't speak to you yesterday, but there was a lot to take in and a lot to deal with. I am here to apologize to everyone and I assure you it won't happen again.

"For me, the situation is definitely the worst thing I've experienced in my life. That is why I am here. It is right for me as a human being and as a man to stand in front of you all and tell you exactly what went on and put up my hands. I cannot tell you how sorry I am. I'm sorry to my team and my family for the embarrassment. It is a very, very embarrassing situation."

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