Formula 1's smallest teams have "finally lodged an official complaint" with the European Union over the sport's "unlawful" financial system, according to Daniel Johnson of the London TELEGRAPH. After "nearly a year of threats and grandstanding," Force India and Sauber, who are struggling financially, have registered their grievances "with what they view as the skewed distribution of prize money." Force India and Sauber complain that the biggest teams, Red Bull and Ferrari, "get tens of millions of pounds in prize money before they even complete a lap on track." They are also "furious at being locked out of the sport's premier decision-making body," the Strategy Group, although Force India does have a seat this year on account of last season's constructors' championship finish. A Force India spokesperson said, "Sahara Force India is one of two teams to have registered a complaint with the European Union questioning the governance of Formula One and showing that the system of dividing revenues and determining how Formula One's rules are set is both unfair and unlawful. Due to the ongoing legal discussions, it would be inappropriate to comment further at this time" (TELEGRAPH, 9/29).
GAINING MOMENTUM: In London, Oliver & Allen reported momentum toward a complaint "has been building for several months," with smaller teams saying that they have been pushed into a crisis. Caterham and Marussia, two U.K.-based F1 teams, went into administration last year. EU Competition Commissioner Margrethe Vestager "must now decide whether the case merits a landmark antitrust showdown" with F1 CEO Bernie Ecclestone. Weighing the merits of a complaint "can take several months and F1 will also receive a right to reply." The first element of the complaint "concerns financing." The smaller teams argue that media revenues are "disproportionately allocated to their bigger rivals, who all receive a large share of funds regardless of their performance on the track." The second element concerns the rule-making structure of the sport, "whereby the strategy group makes key decisions on technology, regulation and car design in the interests of the bigger teams." Vestager has gained a reputation as a "tough commissioner" and has already opened major antitrust cases against Google and Gazprom (FINANCIAL TIMES, 9/29). REUTERS' Alan Baldwin reported Force India Deputy Principal Bob Fernley confirmed that his team and Swiss-based Sauber were involved. The complaint comes at a "delicate time" for F1, with several teams "struggling to stay afloat while a major rules revamp is under discussion" for '17. The sport's ownership has "also been in the spotlight," with media speculation that RSE Ventures, the investment vehicle of NFL Miami Dolphins Owner Stephen Ross, and Qatar are lining up a potential $7B-$8B takeover deal. Ferrari, whose team receives "special payments" to reflect its status as the "oldest and most successful" in F1, is meanwhile lining up a flotation in N.Y. (REUTERS, 9/29).
TAKING ACTION: AUTOSPORT's Ian Parkes reported F1's "skewed financial payments model" was initially questioned by Anneliese Dodds, a U.K. member of the European parliament, following the demise of Caterham and Marussia, the latter "eventually saved from administration and now racing again as Manor." Dodds then directed her concerns to Vestager, who, while interested in the case, "was unable to act without a formal complaint being made." Force India and Sauber "have now decided to stick their heads above the parapet, with one source suggesting the team's necks are well and truly on the line" (AUTOSPORT, 9/29).
