Richards Says Tobacco Law Could Drive BAR Abroad

BAR Formula One boss David Richards warned on Sunday that anti-tobacco legislation in Britain could drive his Formula One team out of the country.

Richards, whose Honda-powered team have British American Tobacco (BAT) as the main shareholder, said measures due to come into force at the end of July next year were "a disaster in the making".

"It's a major concern to me," Richards said at the launch of his team's 2004 car in Barcelona. "And it should be a major concern to everyone involved in Formula One now because the knock-on effect will be significant."

The European Union is due to extend a ban on tobacco advertising to radio, newspapers and the internet next year while also outlawing tobacco sponsorship of sporting competitions with cross-border interest.

Richards said British legislation went further and could expose his team to prosecution if it raced anywhere in the world and tobacco branding and the images were seen in Britain.

"Because we are a British team, because we are based in England and because our sponsor is based in England, we could not run cigarette advertising in China," said Richards.

"Yet foreign-based teams outside the UK with foreign sponsors can do it. It's completely prejudicial to British Formula One teams and is a real disaster in the making."

Global Ban

Formula One is British-dominated, with seven of the 10 Formula One teams either based in the country or having significant operations there. Only three British teams - BAR, McLaren and Jordan - have tobacco backing and they run unbranded already at the British and French Grands Prix.

The other two tobacco teams are Italy's World Champions Ferrari, with American tobacco giant Phillip Morris on board, and French carmaker Renault backed by Japan Tobacco. Richards insisted moving abroad was a potential option, however unlikely it sounded.

"You couldn't move the actual structure but you could move parts of the team," he said. "I know that it has been discussed in other quarters as well."

Formula One has been at loggerheads with the EU over tobacco for years and has cut back on European races, with the San Marino Grand Prix to be axed next year, while chasing new markets in the developing world.

Richards said BAT, who have pumped hundreds of millions of dollars into BAR since the team started in 1999, were committed to withdrawing in October 2006 when a voluntary global ban on tobacco advertising is due to come into force.

He said that, while BAT could continue to own the company indefinitely as an asset, the management preferred to consider an eventual sale.

"I have regular discussions with them about this and it is an issue that will be resolved in due course," he said when asked if he was interested in a takeover.