Carmakers Confirm Contacts with Kirch Bankers

Bankers for the troubled Kirch media group have approached Formula One carmakers with a proposal that could lead to a deal over the sport's commercial rights.

The GPWC, a new company set up by carmakers planning their own Grand Prix World Championship from 2008, confirmed the contacts in a statement issued after a meeting at the San Marino Grand Prix on Saturday.

"GPWC Holdings BV have been approached by banks representing the Kirch Group," it said. "The Board will examine any proposal made by those banks provided that it is consistent with GPWC's objectives."

Paolo Cantarella, the Italian chairman of the GPWC board, told reporters separately that the banks had presented a proposal but gave no details. The statement did not spell out why the banks had approached GPWC.

But part of the Kirch group, which effectively controls 75 percent of the Formula One holding company SLEC that owns the commercial rights for 100 years, filed for insolvency this week.

Although the rights are held by a division that remains solvent, Kirch is expected to sell certain assets and the company has said in the past it would be open to offers.

The GPWC was set up last year with directors from BMW, FIAT, Renault, Ford and DaimlerChrysler to lay the groundwork for a new championship once an existing agreement with SLEC expires at the end of 2007.

Circuit Contacts

Of the 11 current teams, FIAT own World Champions Ferrari, Renault have their own operation and Jaguar belong to Ford. Williams and McLaren are partners of BMW and Mercedes respectively.

Ferrari also provide engines to Sauber and Jaguar do the same for Arrows. BAR and Jordan have a deal with Honda while Toyota have their own team but neither of the Japanese manufacturers are on the GPWC board.

International Automobile Federation (FIA) president Max Mosley said earlier on Saturday that Kirch's troubles were likely to increase the chances of a deal being reached between Kirch and the manufacturers. The GPWC statement also confirmed that contacts had been established with 23 circuits and promoters in order to plan their new championship.

"Media experts and analysts were also recently contacted to define proposals and contracts regarding television rights," it added. "The first meeting with the current Formula One teams was held on November 27, 2001.

"A second will be held this summer when a detailed contractual and economic proposal will be presented to the teams."

The meeting at Imola, before the first European race of the season, was also attended by Ferrari president Luca di Montezemolo. GPWC said managers, legal advisers and media specialists had been working for almost a year on the project.