Ecclestone labels Mosley claims inaccurate

Ecclestone said publicly on Thursday that he is not 'at war' with Mosley and dismissed suggestions that he, as the commercial rights holder, and his financial backers CVC, are seeking to take authority of F1's regulatory power.

"The CRH (commercial rights holder) does not wish to have control over the Formula One regulations," wrote Ecclestone in the letter. "We believe that the Formula One regulations should be drawn up by the Formula One Technical and Sporting Working Groups, subject to the approval of the FIA Formula One Commission and the FIA World Motor Sport Council.

"To the extent any changes to the Formula One regulations may have a material commercial impact on the CRH and its interests, such changes should be discussed and agreed with us.

"Imprudent changes to the Formula One regulations, if adopted, could have a dramatic adverse impact on the attractiveness of the sport, to promoters, to broadcasters, to sponsors and to the fans; they could add significantly to the cost of participating in the Championship at a competitive level; they could also undermine or depart from the Championship's traditional values. We believe that a clear regulatory framework would minimise the risk of such problems."

Mosley sent a letter to FIA members last week suggesting that should he be removed from his presidency, following a vote of confidence meeting in Paris on June 3 regarding allegations made about his private life in a Sunday tabloid newspaper, then the FIA could lose control of F1.

But Ecclestone, representing the sport's financial backers CVC, has dismissed this notion and stated that the FIA should remain the 'sole body governing international motor sport, which governs the sporting organisation of the FIA Formula One World Championship.'

"We recognise the obligation conferred upon the FIA by you, its membership, to safeguard its authority over all safety, sporting and technical matters relating to the Championship, as well as its traditional values," he stated in the letter.

"We support and concur with the requirement of the European Commission that regulatory functions relating to international motor sport be separate from the associated commercial interests and that the FIA's role in Formula One should be that of the sporting regulator, uninvolved in its commercial exploitation."

Ecclestone also dismissed Mosley's suggestions that the sports commercial rights holders and financial backers are in negotiations over a new '100 Year Agreement' which maps out F1's sporting and commercial future, adding that the deal has been in place since 2001, and that the FIA was under no obligation to accept changes suggested by CVC.

"You will recall that this set of agreements (the 100 Year Agreements) was entered into between the FIA and SLEC Holdings Limited in April 2001," said Ecclestone. "Those agreements are valid and binding on the parties and will in all material respects become operative in 2011.

"They do not need to be altered or renegotiated unless both parties wish to do so.
There are some ambiguities in the drafting of these agreements, however, and we have sought discussions with the FIA President to clarify these points and to avoid unintended consequences.

"We have also raised with him a number of other issues which we considered would improve the agreements without damaging the FIA' s interests, but we accept that is a matter for the FIA to judge, it is not obliged to make those concessions to us and should it consider it is against its interests to do so, we would be content to leave the agreements in their present form and when the time comes, to operate within their existing scope, without amendments."

Ecclestone also called for an immediate renewal of the Concorde Agreement, which binds the competing teams to the current regulatory framework and sets in stone the annual prize fund.

"There has been a Concorde Agreement since 1981," he said. "The most recent Concorde Agreement expired at the end of 2007 and we desire that it be renewed, not as a way for the CRH to exercise control over the sport, but because it will provide the financial and regulatory stability desired by the Formula One teams and the motor manufacturers who sponsor and invest significantly in them.

"The commercial and financial arrangements, including the distribution of the annual prize fund, have been agreed between the CRH and the Formula One teams, with the full knowledge of the FIA."

Ecclestone concluded his letter by disputing Mosley's suggestions of a looming financial crisis in Formula One, arguing instead that the sport was in rude health, and that while team's operating costs had grown out of control, measures have already been taken to curb this.

He added that Formula One Management, the commercial rights holders and CVC would continue to support Mosley should he remain in power beyond June, but outlined the need for a strong, 'credible and respected' president to lead the FIA into the future.

"We intend to continue our successful relationship with the FIA," he said. "We believe it benefits Formula One as a whole.

"We have no reason to undermine the FIA or its President, on the contrary we believe a strong FIA led by a respected President is good for all key constituents of Formula One: the fans, the teams, the sponsors and suppliers, the promoters, the media companies and us, the CRH."