Details Revealed on Ecclestone's 100-year Lease of F1

In light of The Economist's exposé on Bernie Ecclestone's F1 business, published today, FIA insiders in Austria revealed that the governing body had initially turned down an offer to lease the whole of the Formula One World Championship to Ecclestone. Instead, the FIA agreed to extend Ecclestone's current lease of the commercial rights to the next 100 years.

The 100-year deal has apparently been accepted by the European Commission Competition Directorate, but the FIA would not accept a deal to lease the entire World Championship, including the technical side.

Uncertainty remains, however, as to how the new deal will work under the current Concorde Agreement, which runs only until 2007. With increasing interest and participation from the major motor manufacturers, that could cause unrest as, currently, the teams' share in the profits is only 47 per cent. Furthermore, it was suggested in various reports that a conglomerate of car manufacturers, lead by Mercedes, had wanted to counter-bid Ecclestone's offer, but eventually backed off the idea.

Ecclestone, according to reports, is paying $360m for the 100-year lease, the payment conveniently spread over several years. According to Paddock reports, $60m of Ecclestone's payment are planned to go into moving expenses and the leasing of new offices for the FIA in the Place de la Concorde, back in Paris.

The Motor sport's world governing body left the French capital after a dispute with French tax authorities and relocated to Geneva, Switzerland. However, it now seems that the dispute has been resolved and a return to base at Place de la Concorde is possible. Some 12 members of staff who went to Geneva would be eager to return.