Grapevine: New Company Set Up by British Teams

Five of the Formula One teams based in Britain have set up a new company to help them exploit new commercial avenues, according to a report in the British press.

The Sunday Business newspaper reported that Williams, British American Racing, Jordan, McLaren and Arrows have created the GPT company as they bid to get more out of the sport and its merchandise. The report said that the company was set-up in December last year, at the same time as German media giants Kirch bought into the commercial rights of the sport through compatriot media company EM.TV.

It is believed that all the Formula One teams want more revenue from the commercial and broadcasting side of the sport and five car manufacturers - Ford, Fiat (who own Ferrari), DaimlerChrysler, Renault and BMW - have threatened to set up a rival series to get what they want.

The threat, which cannot be carried out until the current Concorde Agreement ends in 2007, is leaving a shadow over the sport and with a worldwide recession also expected to affect teams' finances, Formula One faces a tough period.