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Leagues and Governing Bodies

F1 On 'Edge Of Seat' In Light Of Potential European Commission Investigation

The world of F1 "is currently on the edge of its seat waiting for regulators in Europe to decide whether to open an investigation following a complaint from two teams over the allegedly anti-competitive way the series is run," according to Christian Sylt for FORBES. However, new opinion "has cast doubt on whether there is actually anything to investigate." If the European Commission "decides to investigate it could lead to an overhaul of the contracts at the heart of F1 but the latest views from one of the most seasoned observers of the sport suggest that one of the beneficiaries of the allegedly anti-competitive behaviour may have actually lost out, rather than gained." There "are two issues at the heart of the complaint." The first concerns the terms of F1’s prize fund, which was revealed to have hit $863.1M last year. Three of the 10 teams -- Ferrari, McLaren and Red Bull Racing receive 44% of the total "thanks to bonus payments for their prior success." If the complaint to the EC triggers an investigation by the regulator "it could demand that this money is distributed more fairly in future which would give F1’s minnows more of a chance on track." Adding to the alleged hurdle against F1’s smallest teams "is the fact that the top six have seats on the sport’s decision-making body the Strategy Group." In April last year the Strategy Group vetoed a $200M cap on team budgets which would have leveled the playing field and in turn "boosted the chances of the smaller teams." The EC "is now deciding whether to proceed to a formal investigation and it could have significant consequences if it does." It would not be the first time this has happened (FORBES, 10/14).

EXPANDED CALENDAR? REUTERS' Alan Baldwin wrote F1 teams "will have to reach unanimous agreement in the coming weeks if the sport is to expand to 21 races next year and manufacturers are to be allowed to supply customer teams with older engines." The latest draft calendar has 21 races, but the '16 sporting regulations published on Wednesday stipulate, as ever, that "the maximum number of events in the Championship is 20." The definitive calendar "will not be published until December." Any changes to the published regulations can now be made only "with the unanimous agreement of all competitors entered in the 2016 championship, save for changes made by the FIA for safety reasons." Teams "are likely to approve an expanded calendar if it brings them more money but allowing the use of older engines is more controversial" (REUTERS, 10/14).

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