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April 30, 2009
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Ecclestone To Cut F1 Prize Money By 50% If Teams Do Not Commit

Ecclestone Says Money Saved
Could Reduce Hosting Fees
F1 Management Chair Bernie Ecclestone "plans to cut by 50[%] the prize money paid to the sport's 10 teams unless they sign a contract committing them to race," according to Sylt & Reid of the FINANCIAL TIMES. The money saved would be used to "reduce hosting fees paid by circuits -- a move that could prevent Europe from losing Grand Prix to emerging nations, which use the races to promote themselves internationally." Ecclestone said the teams "want to be paid in the same manner as if they had agreed to be committed (to race) for five years but they don't want to be committed." He added that while several teams "refused to sign the new contract, they are paid at the higher rate." Ecclestone: "They shouldn't get the prize money. We are now running more of a cash-on-delivery service. You sign the contract and we will pay you in full." Ecclestone noted that he "would not rule out acquiring more race tracks for his portfolio ... if the teams do not sign a new Concorde agreement and their payment is cut" (FINANCIAL TIMES, 4/30).

JUDGMENT DAY: The FIA yesterday handed down a suspended three-race ban for the McLaren F1 team for “lying to race officials at the season-opening Australian Grand Prix.” The sanction will be applied “if further wrongdoing emerges or if there is another rules breach by the team in the next 12 months.” The FIA said it suspended the penalty in part because of “the open and honest way” in which McLaren Principal Martin Whitmarsh handled yesterday's hearing in Paris (BLOOMBERG NEWS, 4/29). In Manchester, Maurice Hamilton wrote a "suspended three-race sentence is the best [McLaren] could have hoped for as punishment." While McLaren "will deny it, a substantial factor behind what ...  is a welcome but surprisingly lenient decision, has been the complete removal" of former McLaren Principal Ron Dennis from the team. The suspicion "remains that the hand of Dennis was behind the hopeless attempt at deception, which explains his hasty departure... and the FIA's willingness to accept [Whitmarsh's] word that his team has turned over a new leaf" (GUARDIAN.co.uk, 4/29).


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