FIA and European Union Settle F1 Row
27.1.01

The dispute between the European Union and world motorsport's governing body over the million dollar broadcasting and commercial rights to Formula One racing was settled yesterday after a five-year battle. The preliminary settlement, signed in Brussels by the European Commission, the Federation Internationale de l'Automobile (FIA) and Formula One promoter Bernie Ecclestone, will result in the Commission dropping its complaints that commercial arrangements between the FIA and Mr Ecclestone's companies have been anti-competitive.

The agreement, expected to be made final within six weeks after a period of consultation, endorses a number of changes to motor sport's commercial arrangements. Its main provisions are that the FIA will withdraw from any commercial involvement in F1 and other motor sports, confining itself to the role of regulator.

Mr Ecclestone's Formula One Administration (FOA) will make a one-off payment of $360m. to the FIA for F1's broadcasting rights in perpetuity. It will also limit the duration of its own broadcasting contracts to a maximum of five years and remove contract provisions regarded as having penalised broadcasters wanting to show other forms of single-seater racing.

Other changes include a strengthening of the rights of motor sport organisers, circuit owners and participants, with the FIA also waiving any claim to broadcasting rights of all events that it authorises.

The path to a settlement has been opened mainly by Mr Ecclestone agreeing to sell FOA's interests in all other forms of motor sport except F1, and to disengage from his own close relationship with the FIA. He has served for many years as the FIA vice-president in charge of promotional matters.

Mario Monti, EU competition commissioner, said the new arrangements "amount in principle to a satisfactory solution". The agreement will end one of the most bitter and acrimonious battles to involve the EU's competition department.

Copyright: The Financial Times Limited

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