Max Mosley sends out a warning

Max Mosley is determined to stay on as FIA president until the end of his term in 2009. Even if that means leaving the public representation to two Deputy Presidents. This is one the things he states in his four page letter to all FIA club presidents. The more interesting however are the reasons why he wants to continue. One is Mosley’s concern about the election of his successor. And this question is directly connected with the next point. The negotiations… Mosley’s letter may be going on for four full pages but the points that will sure stir the biggest controversy and discussions are his revelations about the current negotiations between FIA and the Formula One Commercial Rights Holder.

“We are in the middle of a renegotiations of the 100 year commercial agreement between the FIA and the Formula One Commercial Rights Holder (CRH). In effect, this agreement governs Formula One. The CRH originally asked us to accept changes to the agreement in order to reduce the CRH’s liability to tax. These we can probably concede. But the CRH has also now asked for control over the F1 regulations and the right to sell the business to anyone – in effect to take over F1 completely. I do not believe the FIA should agree to this.
To do so would be to abandon core elements of the FIA’s patrimony including, for example, our ability to protect the traditional grands prix. We would also be weaker financially but, even more importantly, we would put at risk the viability of the FIA as the regulatory authority of international motor sport and lose a valuable communication platform for the wider interests of the organisation.”

So Max Mosley is basically saying, that if he is forced to resign, FIA is about to loose the control over Formula 1. In the part of his letter where he talks about the election of new president he openly expresses concern that a person may be elected that would actually support the interests of the Commercial Rights Holder in the current negotiations.

I wonder why FIA even negotiates with the Commercial Rights Owner ? The agreement with Ecclestone was made in 2000. If it is a “100 year” deal, why FIA enters into renegotiations in 2008 especially if the demands from the other party are not favourable to FIA … I understand that the dealings behind the scenes are complicated and complex. But FIA is basically being asked for a favour “to accept changes to the agreement in order to reduce the CRH’s liability to tax”. Why it gets drawn into further talks that may result into something not exactly favourable to FIA ? Why then simply FIA does not take a stand “take what we can offer or leave it” ? If the story goes as Mosley describes it I kind of have a feeling that he is not exactly doing the right job here …

So is there a conflict between CRH (Ecclestone and CVC) and FIA and Mosley really has a case here ? Or is this all made up by Mosley in a desperate attempt to survive the vote of confidence in 3 weeks time ?

You can read the full letter here

8 Comments Post a Comment
  1. KotenokNo Gravatar says:

    Back to the events in 2000? What was there signed down?

    If Mosley is scared the FIA can lose the control, why he should event take a step into the deals, or did he give the wrong step? Hopefully he didn’t sign any clause to renegotiate the deal between Formula One Commercial Rights Holder and the FIA government rights if he flies away from the presidential elect, hopefully he didn’t…

    In any case he is not the right person to govern and decide about who will rule the F1 Rules. As the FIA is build as a committee he will have to wait that the events happen arround him. He can’t take a decision himself, can he? Well, a “little” dictatorial past he have… Yes, indeed.

    I think he tries to make us think he is indispensable, but my mind isn´t easy to change (not only because the last events with the favourite video of The News of the World, I’ve been in disagreement of his politics since many years ago). So, it is his game again as for me!!

  2. marcNo Gravatar says:

    I started to post this when it first broke then lost interest in the subject.

    Which come to think about it may be part of the reason there’s such a delay in the Paris meeting.

    Anyway, not sure what to make of his allegations and whether much of it is rumore and a way to shift the meetings emphasis away from the real topic at hand or whether there’s some fire under this smoke worth considering.

    marc’s last blog post..Hamilton Heads Paul Ricard Timesheets

  3. zblkhwkNo Gravatar says:

    Who owns FIA? Is Mosley a hired employee, or does he have an ownership interest? I have long thought (but never verified) that Mosoey was in a similar position with the FIA that Ecclestone has with F1 (ie-he owns it). Does Mosley have an interest in F1?

    Obviously the relationship between F1 and the FIA is not that of a normal vendor/customer. F1 can easily survive without FIA, I am not sure the reverse is true. It seems to me that F1 basically makes the rules and FIA nods their head anyway.

    • F1WolfNo Gravatar says:

      Mosley does not own FIA, he is just a president. That however does not stop him from acting like he owns it …

      Can F1 survive without FIA – well, good point for all new debate :-)

  4. KotenokNo Gravatar says:

    It can survive, but then F1 will have to be ruled as a an international company.Vending shows worldwide and acting as organizer and management of the events is FOM in colaboration with FIA. So there woud be more bigger part of the cake to Bernie’s hands if we delete the FIA. Anyway, some have to apply the rules as comittee, could it be individual federations from every country? Yeah! But only if they get a neutral view about events and how to apply the rules. I’ll look later how’s a steward comittee formed for a GP, in the case of Spanish one there are only 3 people whcih come from the same country as the GP organizer.

  5. zblkhwkNo Gravatar says:

    Doesn’t F1 and Bernie in reality set the rules anyway. It seems that they control the sport anyway, so why not just eliminate FIA and do what they do anyway.

    Does the FIA have any other role in F1 races except rule authority. I still don’t completely understand the role each place in individual grand prix and the overall season.

    • F1WolfNo Gravatar says:

      Actually Bernie does not really set the rules. Bernie can decide where the races will be held and how much the organizers have to pay him. He is running the commercial side and makes sure he makes money out of F1. Rules and rule changes come out of Max Mosley’s head.

  6. […] Max Mosley sent the letter to the FIA presidents and that letter was not exaclty Bernie Ecclestone friendly. So it is no surprise that Bernie Ecclestone is not too happy. His response did not take too long to come: […]

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