Ferrari Boss Sets Deadline for New F1 Deal

Ferrari president Luca di Montezemolo has set a December 31 deadline for Formula One supremo Bernie Ecclestone, three investment banks and the Formula One carmakers to agree on the future ownership and financial structure of the sport, according to the Financial Times.

If the deal is not reached before that date, the carmakers involved in Formula One will commit to the GPWC championship which is set to begin in 2008.

"We [the manufacturers] would like a solution with Mr Ecclestone and the banks. If not, it will be bad, but it won't be a tragedy," di Montezemolo told the Financial Times. "While Bernie Ecclestone was the owner, everyone accepted most of the arrangements. But things have changed.

"The carmakers have a bigger presence, and the cost of racing becomes bigger and bigger. In no other sport are the teams deprived of a share of two of the three main revenue streams - trackside advertising and ticket sales - while having to share just 47 per cent of the gross income from TV rights."

According to the Financial Times, the GPWC would offer the teams up to a 75 per cent share of the revenues.

All 10 of the current teams signed a memorandum of understanding to work together with GPWC in planning the new championship. The existing Concorde Agreement between team principals, the FIA, and Ecclestone expires at the end of 2007, and the teams want a bigger share of the sport's revenues.

The carmakers are Jaguar owners Ford, Ferrari, Williams's partners BMW, McLaren's shareholders DaimlerChrysler and Renault.

Ecclestone sold a 75 per cent stake on SLEC, the company holding the commercial rights of Formula One, to German media groups that collapsed. The stakes were later bought by investment banks Bayerische Landesbank, Lehman Brothers and JP Morgan.