Carmakers Want Control of F1 Revenues from 2008

Formula One teams want control of the sport's revenues from 2008 but will respect existing agreements, says Ferrari boss Luca di Montezemolo.

Montezemolo said he and the chairmen of the major carmakers had met at the Frankfurt motor show on Wednesday to discuss plans to run their own championship.

"We are not talking of the possibility between now and 2007 to have, like in the United States, a parallel or different formula," he told a media briefing at the Ferrari factory on Wednesday evening. The U.S. CART series has split into two with Champ Cars and the Indy racing League (IRL).

"We have signed an agreement, we will respect the contract," said Montezemolo, referring to the so-called Concorde Agreement between the teams, Formula One supremo Bernie Ecclestone and FIA. "But it is a contract that will expire. At the end of 2007 we are all free.

"(In 2008) the deal with the FIA (International Automobile Federation), for the TV rights, for the commitment with the organisers is finished."

Mercedes chairman Juergen Hubbert had suggested earlier this year that a breakaway series could be launched before 2008 if the European carmakers decided it was in their best interests.

Pay Television

The European-based carmakers involved in Formula One - FIAT, Renault, Ford, DaimlerChrysler and BMW - have set up a company to prepare for a series run by them. The move followed Ecclestone's sale to Germany's Kirch media group and EM.TV of 75 percent of his holding company SLEC, which has Formula One's commercial rights for the next 100 years.

Kirch is heavily involved in pay television while the carmakers are adamant that Formula One must remain free to all. FIA head Max Mosley has said he expects the two sides to reach a deal before 2008. Di Montezemolo said the new Formula One would have "the same situation with two differences".

The first was for the teams and manufacturers to get all the television and merchandising revenue. The second would be the appointment of a management group to take on Ecclestone's role.

"Instead of Mr Ecclestone, a good management group will be appointed...and all the revenue will go back to the teams," said Montezemolo, whose own World Championship winning team is owned by FIAT. The Ferrari boss said the aim was to "have 100 percent of the income for the teams, for the players in a modern formula and to have a strong federation, political body, on top".

"Instead of investing huge amounts of money, (they will) generate from the competition the money to invest in their own teams. Today the cake is divided between the new owners, with a big percentage, and a small percentage for the players.

"In the future it can be completely different and this will be used...to give even small teams a possibility to be more competitive and to give to the car manufacturers the possibility to generate the finance to invest in the competition from the competition itself.

"It's not such a big job to organise a championship," continued Montezemolo, who was in charge of the 1990 soccer World Cup in Italy. "We cannot accept to give the potential financial utilisation of our own activity to somebody else."