Ecclestone says breakaway could ruin everything

The five European-based F1 engine-suppliers - Fiat (Ferrari, Ford (Jaguar), Mercedes-Benz, Renault and BMW - have announced plans to form their own championship after a breakdown in talks between them and the German media groups with a controlling stake in the commercial and broadcasting rights for F1, Kirch and EMTV.

Kirch and EMTV recently secured a 75 percent holding in SLEC, the trust set up by Ecclestone which holds the rights until 2110.

The manufacturers have expressed concerns that the sport could be transferred to pay-per-view TV - something Kirch rigorously denies - and also want a greater say in the running and direction of the sport.

Kirch, which became involved in the F1 deal after original share-buyer EMTV ran into financial problems, has offered the teams the chance to buy a 25 percent stake. But insiders say the 'Big Five' are unhappy about having to buy into something they see as theirs by right anyway and by having little or no say in the make-up of the F1 calendar.

Speaking to the Financial Times newspaper, Ecclestone said: "It has taken me 30 years to build up Formula 1 into what it is today and it could take just six months to destroy it."

Kirch and EMTV became majority holders after buying an extra 25 percent stake from Ecclestone last month, but the F1 boss claims that the manufacturers had figured Kirch would be unable to finance the purchase of the extra share, believed to worth around £600 million.

"They bargained on Kirch not being able to come up with the money and now their noses are out of joint," he said. "The bottom line is that the manufacturers had the opportunity to come in, through EMTV, long before Kirch came on the scene. It was a good proposal that they didn't take up."

In an effort to appease the manufacturers, Ecclestone issued a prepared statement yesterday that backed up Kirch's claims that F1 would remain on free-to-air TV and explained that he would run SLEC for a further five years.

"I have been assured that my policy of securing worldwide, extensive, live, free over-the-air television coverage remains unchanged," he said, "and that races will only be allocated into countries which will be in the best interest of the teams, manufacturers and sponsors. From my point of view, this was a necessary precondition for taking on the position for a further five years."

It is believed that as well as being offered a 25 percent stake, the car makers will also be offered veto rights over such issues as broadcast arrangements and the location of races.

The sport's governing body, the FIA, will not become involved in any feud over commercial matters, according to its president Max Mosley, but he said: "If there came a point where we could do something useful to help, we would. At the moment we are just hoping that the two sides can get together and come to a sensible arrangement.

"You need to have a pinnacle in any sport, but there can only be one. We will do all we can to encourage everyone to reach a settlement. But in the end, one has to recognise that if the manufacturers are united and do control the teams and drivers, they are in a strong position and hold the cards - possibly a lot more than Kirch."

The FIA, which gave SLEC the commercial rights until 2110, has power of veto on any matter it sees as damaging to F1 and can, in theory, strip SLEC of the rights should it see fit. The governing body chose not to take any action over Kirch securing a majority stake and only last week, the German monopolies commission also gave the deal a green light.