GPWC breaks off SLEC F1 negotiations

A GPWC statement at Imola cited a failure of the SLEC shareholders - Bambino, Bernie Ecclestone's family trust (25 percent), and the three so-called 'F1 banks' - to comply with a memorandum of understanding that was agreed at the end of 2003. In particular, GPWC is incensed that it has not secured any seats on the SLEC board of directors.

The statement said: "Despite all reasonable efforts to implement the memorandum of understanding between GPWC Holdings BV and the shareholders of SLEC Holdings Ltd, GPWC has decided to end negotiations on the future structure of F1, due to SLEC shareholders' failure to comply with key points agreed in the MoU. Accordingly, and in the best interests of the sport and the teams, GPWC has terminated the MoU with FOA and SLEC shareholders, thereby releasing GPWC from the standstill provision in the MOU."

GPWC chairman Jürgen Hubbert of DaimlerChrysler stated: "When we realised that our commitment to implement the memorandum was not met by the other parties, we had to make a decision in the best interests of the sport and end negotiations."

In the Imola paddock, Ecclestone told Autosport.com in an exclusive impromptu interview: "We were going to give about US$700 million more to the teams until 2007 than they would normally be paid under the Concorde Agreement. They were going to commit to 2014. But when we got down to signing an agreement, they couldn't commit to one year.

"The manufacturers just said they couldn't commit. So we said, if you can't commit, why are you wasting our time? All we want is the Concorde Agreement extended."

Asked by Autosport.com whether the breakdown in negotiations meant that the five GPWC manufacturers would now attempt to carry out their threat to organise their own championship, Ecclestone said: "I've no idea. Probably."

Ecclestone concluded: "What GPWC wanted was the money and all these other things, seats on the board and everything, but they didn't want to give any commitments to the banks. In fact they didn't want to give any commitments at all. What you might expect of big companies."