F1 parties reach agreement

The GPWC was formed by five major F1 manufacturers - BMW, DaimlerChrysler, Ferrari, Ford and Renault, because they were unhappy with the distribution of the revenue generated by F1.

However following a series of "constructive agreements", the group has now signed a memorandum of understanding with Ecclestone and the shareholders of SLEC - the holding company which controls the rights to the sport.

The key points of the agreement include:

Teams will benefit from "significantly" increased revenue over that currently provided by the Concorde Agreement.

Three GPWC directors will be represented on the board of SLEC, enabling the manufacturer group to "contribute its expert knowledge to the sport and to support its long-term success."

Ecclestone will continue to serve as the CEO of Formula One Administration, ensuring that he will continue to run the sport for the foreseeable future.

A definitive agreement between the parties is being prepared, and is due to be signed in the middle of next year. As part of the overall solution the current Concorde Agreement, which expries in 2007, will be extended.

"Obviously my main interest has always been to secure the long-term future of Formula 1," said Ecclestone. "With an amended and extended Concorde Agreement about to be signed, and a general consensus on the key issues, I am very optimistic."

GPWC chairman Professor Jurgen Hubbert said: "This memorandum of understanding incorporates GPWC's core objectives and is in the very best interests of the teams and the fans."