British teams in F1 takeover plan

[Super Tourer]

From Autosport.com


Britain's top Formula 1 teams have joined forces with the aim of taking control of F1's commercial rights. According to a story in The Times newspaper, five teams – McLaren, Williams, Jordan, Arrows and BAR – have formed a company called GPT Ltd.

GPT Ltd has been created in the hope of giving the teams a greater say in the running of the sport as well as a bigger share of its profits. This could be achieved by purchasing the 75 percent share of F1's commercial rights owned by the bankrupt Kirch media group. These rights have also attracted the attention of the major car manufacturers involved in F1, who have threatened to set up a rival series in 2007.

To help achieve its goal, GPT has appointed Neil Johnson, a former FIA vice-president and ex-director at Jaguar and Rover, to head up the operation.

"We have had this downward spiral in the reputation of Formula 1," Johnson told The Times. "There has been a concern that Formula 1 has not been managed well and things are out of control — even on the track things have been getting repetitive and boring — and that has reached such a pitch that everybody realises something has to change. Last Sunday might have been the seminal moment. We have to find a way of putting Formula 1 back where it used to be.

"There is too much secrecy. There was a time when that was probably quite beguiling, but it is not business reality. Everybody around this place, including Bernie, keeps saying that we need this business run by businessmen, but serious businessmen won’t come near anything shrouded in the mists of closed deals that Formula 1 currently is.

"Bernie has done a fantastic job, but that isn’t the point any more. We have an asset called Formula 1, the value of which is — in the pessimistic view — degenerating by the race at the moment."

Johnson hopes to persuade the manufactures behind the proposed breakaway series, and the remaining six teams, to unite with GPT. With Kirch's bankers seeking to sell off its assets and reduce debts the F1 rights are effectively up for sale so a deal could be in place fairly soon.

[Tristan]

Gosh. This is big stuff!! Whilst it seems like an interesting idea, I'm still not entirely sure what they're trying to acheive and what will change. I mean, what will "a greater say" mean in practice??

[calais]

1. how can jordan afford to do this. apparently they are in financial trouble.

2. imagine the fury at ferrari, having no say in how the sport is to be run.
i love it!!!!!!

[EvilPumpkin]

I don't know that it's true that Jordan are in financial trouble - reports are conflicting. But it doesn't cost very much to set up a company - depends on what the buy in price was. Also depends if Jordan paid for it as a company thing or if it came out of EJs own personal stash.

[philmann]

It's like the premier league TV rights being owned by Arsenal, Man Utd. and co. I'm not convinced that this is a good thing. Obviously someone needs to own them, but will we see a lack of focus on smaller teams? Will the teams mentioned above use their "Greater say" to dictate terms to tracks, drivers, sponsors? I'm not really knowledgable about F1 and the politics/business issues involved, but I am sceptical about this potential buy-out. (Unless anyone can clarify to me what this could mean for the sport?)

[Maxmil]

This is a strange development. The Times' article is quoted with great accuracy so nothing seems to have been lost in the translation. What is strange is that McLaren (Daimler/Chrysler) and Williams (BMW) are also members of the "manufacturers" group who have been reported to be trying to buy up the TV rights to F1 from Kirsch. Jaguar is also a member of this group, but, interestingly enough, not of the British group reported in The Times. Ferrari and Renault are also in thre "manufacturers" group. I would guess there has been some sort of a falling out in the "manufacturers" group, but I am really just speculating on this.

[Super Tourer]

I think there is a general under current that Bernie's tenure over F1 will gradually decrease over the years, purely on his age factor if nothing else, therefore F1 has to move into a different era of control.

I would certainly be in favour of the teams owning F1 as opposed to manufacturers or merchant bankers. Bernie's made alot of money out of F1, that's not to say that the F1 team owners haven't either, but none of them are billionaires.

As we have seen in the UK with league football, big paydays from TV rights aren't going to turn out to be the golden egg we all imagined, so its likely that in the future the money F1 receive's from this avenue will decrease.

If F1 is run and owned by F1 teams for the benefit of F1 as a whole, including the fans it could make it more sustainable. The manufacturer have had ample opportunity to buy Kirch's stake, if they are beaten to it by the above -tough!

I can't see them forming a breakaway series, we are all having discussions about the shaky condition of ONE f1 series, without potentially THREE trying to make a living (if Prem 1 ever gets off the ground).

[Stephen Green]

I see Chelsea signed for the Premier F1 series yesterday

[EvilPumpkin]

In which country is F1 actually "registered" - and who's law do they come under.

If I was involved in one of the "non-participating" teams I would be wondering if this came under any of the monopoly laws...

[Super Tourer]

The EU have been trying to nail Bernie for years for the control he has had over F1 and got nowhere.

I think that if commercial rights are available for sale on the open market and the 'non-participating' teams choose not to buy them, and the others do - it will not be regarded as monopoly - simply tough luck really!

[Super Tourer]

Stephen

Saw the bit about Chelseas joing PF1, from what I've read it doesn't cost them anything to enter and they don't have to pay to run the car - so they don't have anything to lose by entering, should it not happen.

I don't think anyone has yet worked out who pays for it yet and as Reynard has gone broke, not sure who's going to be making the cars. I think we should file under the 'believe it when we see it' category.

[Stephen Green]

Oh I had put it in that category the day after it was announced to the world. I don't think it will ever happen personally.

[philmann]

Just as a matter of interest, being as monopolies have been brought up here, does this definition below remind anyone of the actions taken in the past by any number of F1 teams?

"The word `monopoly' has a special meaning under the Fair Trading Act (`the FTA'). For the precise legal definition please refer to sections 6 and 7 of the FTA.
Broadly speaking, the Act provides for two different kinds of monopoly situations: scale - when an individual or a single company, or companies within the same group, accounts for at least 25 per cent of the supply or acquisition of particular goods or services; and complex - when individuals or companies, which together account for at least 25 per cent of the supply or acquisition of particular goods or services, follow a course of conduct, by agreement or not, that prevents, restricts or distorts competition."

[Stephen Green]

What it does remind me of is the old FIA/FOCA war. When was that, back in the 70's I believe?