Feature: F1 Money Men Come to the Fore

Formula One may have rewritten the rule book over the off-season and calmed some of the critics but the future remains unsettled.

An extended points system and revamped single-lap qualifying format, as well as technical measures agreed this week, should help cut costs and boost excitement.

But, as one front calms down, another flares up and the battle for control of Formula One's revenues and commercial rights is picking up pace.

The sport's carmakers declared last week that they have finalised plans to set up their own championship from 2008 if there is no agreement with the existing rights holders.

While most people believe a compromise solution will be found to prevent any split, there is still a way to go and a lot of talking to be done.

Renault motorsport head Patrick Faure, who is on the board of the GPWC company set up by the carmakers to prepare for their own series, mapped out the battlefield at the track debut of his team's new car in southern France this week.

More Money

"We (the GPWC) have finalised a solution for the future, we have an organisation agreement for Formula One replacing the Concorde Agreement," he said.

That secret Concorde Agreement between the teams, rights holders and the International Automobile Federation (FIA) - which governs the running of Formula One and distribution of revenues - is at the heart of the matter.

It expires at the end of 2007 and the teams want a renogotiated agreement to give them far more money than at present.

"We are not fighting a war, we want the majority of the money generated by Formula One to go to the teams. That's the only thing we want," said Faure. "It is the way it is going to happen in Formula One in the future. It is impossible that it doesn't go this way now. There was the first era, there will be a new one now."

He said the GPWC would try to find a solution with the banks that control 58 percent of the shares in Formula One holding company SLEC, as well as Bernie Ecclestone's own family holdings.

The banks need a return on their investment, having recovered the shares from the failed Kirch Group, but might be persuaded to take less revenue in exchange for a longer interest in a rewritten Concorde Agreement.

Continuity would meanwhile save money for the manufacturers, who could buy a stake in the existing business and protect the Formula One brand from a damaging split.

"If we can find it, I think it will be extremely good for Formula One and the future of Formula One is in the right direction," said Faure of a possible solution. "If we can't find it, we'll wait for 2008 and then we'll launch our championship.

"We have a meeting with teams, probably in February, to explain to them the positions, to show them the business plan, to explain what we are going to do in the future.

"I have the feeling now that things are very clear. I am not pessimistic. I hope we will have a compromise. I don't expect it to last very long now," he said. "Either we arrive at an agreement or not. If we don't, you will still see GPWC at the end of the year, I can promise you that."

Engine Changes

The manufacturers are also at loggerheads with the FIA over a proposed move to make engines last for six races from 2006, an idea that Faure said was totally unacceptable.

There remains a suspicion, however, that the six-race suggestion is merely a bargaining ploy - along the same lines as an idea mooted last year for drivers to swap cars - designed to prompt agreement on less radical measures.

"That's the interest of negotiations. You have always a starting point and a different arrival point. The only thing we will not compromise on will be the six races, that's not acceptable for us," said Faure.

"One engine per weekend is perfectly acceptable."