Flavio Briatore says he was betrayed, over scandal

Former Renault Formula One team manager Flavio Briatore could lose out on at least $9.1 million a year after resigning because of a cheating scandal, company accounts show.

The 59-year-old Italian was banned for life from the auto racing series on Sept. 21 for conspiring to fix a race. He collected $7.6 million in consultancy fees from selling series television rights in Spain in 2007 on top of his $1.5 million salary. He also benefited from management contracts with drivers including Red Bull’s Mark Webber and McLaren’s Heikki Kovalainen. The team escaped with a suspended ban.

“They’ve isolated him,” Mark Borkowski, a public relations consultant in London, said in an interview. “His brand is damaged: He’s got an uncertain future.”

Briatore’s troubles extend to his other holdings. He may face a ban from co-owning English soccer’s Queens Park Rangers under league rules. He denies wrongdoing, according to Formula One’s ruling body, Federation Internationale de l’Automobile, which says he has 14 days to appeal.

This weekend is this year’s Singapore Grand Prix, the race where Briatore and Renault team engineering chief Pat Symonds conspired with driver Nelson Piquet Jr. for him to crash last year to help teammate Fernando Alonso win, according to the FIA. Piquet Jr., dropped by the team in August, and a whistleblower dubbed “Witness X” gave evidence about the plot, the FIA said.

Briatore left his post last week. The FIA then ruled drivers managed by Briatore must end their contracts with him and he will be denied access to races for life. He also manages Renault’s Romain Grosjean.

Left Without Means

“He has been left without his means to earn a living,” Carlos Gracia, president of the Spanish motor racing federation, told the newspaper As. Briatore may sue the FIA because there was no clear evidence to incriminate him and he didn’t have a chance to defend himself, Gracia added.

Briatore couldn’t be reached for comment for this story.

Renault’s removal of Briatore and Symonds helped mitigate its sanction, the FIA said. The FIA also took into account an apology by Renault and a “significant” contribution it agreed to make to FIA road safety projects.

Briatore, who entered Formula One in 1989 as commercial director of Benetton SpA’s team, has multiple interests in Formula One, some of them stemming from his friendship with series Chief Executive Officer Bernie Ecclestone, former Minardi team manager Paul Stoddart said.

Tied at Hip

“Flavio and Bernie are inextricably tied at the hip,” Stoddart said.

Ecclestone ceded Briatore the television rights to Formula races in Spain, the Italian said in an interview in 2006. The rights are exploited via Stacourt Ltd., a unit of Briatore’s Formula FB Business, which is based in the British Virgin Islands. In 2007, Briatore received 4.7 million pounds ($7.6 million) in consultancy fees, company filings of Stacourt in London show.

Ecclestone, 78, didn’t immediately respond to an e-mail sent to his London office seeking comment and an FIA official didn’t return an e-mail seeking comment about whether the deals were affected.

Ecclestone and Briatore in 2003 set up the GP2 series, which runs on Formula One race weekends, with the Italian’s associate Bruno Michel. The series was sold to CVC Capital Partners Ltd. in 2007 for an undisclosed amount. The private equity firm bought Formula One a year earlier after taking out $2.5 billion in loans.

Soccer Issues

In soccer, Briatore and Ecclestone bought second-tier Queens Park Rangers for 14 million pounds in 2007. Steel billionaire Lakshmi Mittal bought a 20 percent stake four months later. Earlier this month, league officials asked the FIA for documentation about Briatore’s case. League rules say team owners or directors should be barred if subject to a ban from a sports governing body.

Neither Ecclestone nor Mittal has condemned Briatore and the possibility of repairing his public image isn’t out of the question, Borkowski said.

“He has a lot of powerful friends and Formula One is one of the most unpredictable sports,” Borkowski said.

Schumacher back in Formula One as Massa's replacement!!!

After several days of speculation, Ferrari announced on Wednesday that seven-time Formula One world champion Michael Schumacher will indeed replace the injured Felipe Massa in next month's European Grand Prix in Valencia, Spain.

An announcement on Ferrari's Web site said that Schumacher, 40, will begin training immediately to make sure he is in shape for his comeback and that he is ready to go. Schumacher suffered some injuries during the winter after crashing a racing motorcycle, and the team needs to be sure he is fit. Regardless, the news comes as a strange contradiction to what the 40-year-old German's manager, Willi Weber, told the Daily Mail in comments published Tuesday. Webber said that he was "200 percent" sure that Schumacher would not fill the vacant seat. However, AutoWeek reported on Sunday that Schumacher topped the list of candidates for the job.

Sorry, Willi.

"The most important thing first: Thanks God, all news concerning Felipe are positive. I wish him all the best again," the most successful F1 driver of all time said.

"I was meeting this afternoon with [team boss] Stefano Domenicali and [Ferrari president] Luca di Montezemolo and together we decided that I will prepare myself to take the place of Felipe.

"Though it is true that the chapter Formula One has been closed for me since long and completely, it is also true that for loyalty reasons to the team, I cannot ignore that unfortunate situation. But as the competitor I am, I also very much look forward to facing this challenge."

The European Grand Prix on Aug. 23 will mark the first time that Schumacher races alongside Ferrari's Kimi Raïkkönen, and it will be the first time that he experiences F1's new slick tires and kinetic-energy-recovery system. In his favor, upcoming races take place at tracks known to be among Schumacher's favorites: Spa-Francorchamps, Monza and Suzuka. Schumacher has not raced at Valencia, Singapore or Abu Dhabi, which also are among the upcoming events.

Talks Breakdown Puts F1 Future ‘In Jeopardy’ Again,

The threat of a Formula One breakaway was revived after eight teams walked out of talks with the sport’s governing body and said the future of the racing series was again at risk.

The Formula One Teams Association said its members left yesterday’s discussion on next year’s rules after being told by the Federation Internationale de l’Automobile that they hadn’t entered the 2010 championship and therefore had no voting rights on technical and sporting regulations.

Ferrari, McLaren, BMW Sauber, Renault, Toyota, Red Bull Racing, Toro Rosso and Brawn GP -- who had threatened a rival series before reaching an agreement on a unified championship June 24 -- said their lack of say left them with “no option other than to terminate their participation” in the discussion at Germany’s Nurburgring circuit.

All eight FOTA members “were included on the ‘accepted’ entry list as endorsed by the World Motor Sport Council and communicated by FIA press statement on June 24,” the association said in a statement. “To subsequently go against the will of the WMSC and the detail of the Paris agreement puts the future of Formula One in jeopardy.”

The standoff over planned budgetary and technical changes looked to have been resolved last month when the FIA agreed to scrap its proposed budget cap of 40 million pounds ($64.3 million), which would have given smaller teams more engine and design freedom. FOTA members said the plan would have resulted in a two-tier championship.

Mosley U-Turn

The teams won concessions on rule changes and governance, while FIA President Max Mosley agreed not to stand for re- election in October. Mosley has since reconsidered because of what he said were misleading statements made by FOTA to the media, the U.K.’s Daily Telegraph reported.

Yesterday’s meeting before the July 12 German Grand Prix was attended by the Williams and Force India teams, who are suspended from FOTA after submitting unconditional entries to race next year before an agreement was reached. The new Campos Grand Prix, Manor and US F1 teams were also present.

The FIA said the aim of the meeting had been to agree changes to 2010 regulations in line with last month’s decision to revert to the sporting and technical rules in place before April 29 this year.

“Unfortunately, no discussion was possible because FOTA walked out of the meeting,” the FIA said in a statement.


Press Release
2010 FIA Formula One World Championship
08/07/2009

Following the decision of the World Council on 24 June to revert to the pre-29 April version of the 2010 F1 Sporting and Technical Regulations, the FIA today met the teams which have entered the 2010 Championship to seek their agreement to these changes.

All changes have now been agreed subject only to the maintenance of the minimum weight at 620 kg and the signing of a legally binding agreement between all the teams competing in 2010 to reduce costs to the level of the early 1990s within two years, as promised by the FOTA representative in Paris on 24 June.

The eight FOTA teams were invited to attend the meeting to discuss their further proposals for 2010. Unfortunately no discussion was possible because FOTA walked out of the meeting.

FOTA's "New Formula" eyes 17-race calendar

Rumours that plans for FOTA's breakaway championship are moving forwards abounded on Sunday.

In the paddock of the Silverstone circuit, even a possible name for the series emerged - 'New Formula' - as well as a potential 17-race 2010 calendar.

Former F1 venues including Buenos Aires, Mexico City, Jerez, Imola, Montreal, Indianapolis, Silverstone, Magny Cours and Adelaide were listed on the theoretical calendar, published by the German news agency SID.

Current tracks were also mentioned: Monaco, Silverstone, Monza, Abu Dhabi, Singapore and Suzuka, while potential new venues are Jerez, Portimao, the Lausitzring, Surfer's Paradise (Australia) and even the Finnish capital Helsinki.

But while some suggest that F1 chief executive Bernie Ecclestone is moving towards the rebel team's plans, he told Britain's Daily Star newspaper on Sunday that he fears for the breakaway.

Despite earlier sympathising with the teams' dislike of the proposed budget cap, he now believes unfettered spending "could be the curse of our sport".

"It could ruin it. It would be a disaster and they'd destroy the sport," he said.

"I would hate to see any kind of takeover happen because it would be badly managed. They can't even run their own teams. They can't agree on anything. If the teams owned it they would destroy it," Ecclestone, 78, added.

He also scoffed at the leaked FOTA calendar, wondering how the body can compete with the structure operated by his businesses.

"We organise the venues which don't cost the teams a penny," said Ecclestone. "I reckon Ferrari and McLaren need us more than we need them.

"All they have to do is pitch up at a track with their sponsors' names all over their cars in exchange for millions of quid and race in front of a worldwide television audience -- which I have set up and keep going.

"The bottom line is they can't afford to set up a rival championship," he added.

Fota Vs Fia – the Dispute Explained

What prompted this crisis?

Max Mosley, president of the FIA, had been asking the formula one teams for suggestions on how to cut budgets, some of which exceeded £250m per annum. When the teams failed to respond to Mosley's satisfaction, the FIA announced a voluntary £40m budget cap for 2010 with greater technical freedom for those teams accepting the restriction, effectively creating a two-tier championship. The Formula One Teams Association (Fota), which was formed last September, said it could not accept the proposal. As part of a compromise, the FIA said it would drop the two-tier idea, though the teams still resisted. When entries opened for the 2010 championship, Williams and Force India were thrown out of Fota when they accepted the FIA's conditions and entered. The remaining eight teams made a block entry on the understanding that certain conditions were met. Mosley refused but further discussions appeared to be heading for another compromise. Negotiations failed and the teams were given until tonight to accept his terms. In the meantime, the FIA had received entries for several new teams. After a four-hour meeting yesterday, the eight Fota teams said they would form a separate championship.

How serious are the Fota teams?

Very serious. They object to Mosley's methods of governance just as much as the immediate £40m budget cap which the large teams say would be impossible to apply in a short space of time.

How difficult would it be to set up a rival championship?

Extremely difficult, but not impossible. A massive infrastructure is needed. The equivalent of Bernie Ecclestone, the FIA's commercial rights holder, would be needed to establish television contracts and revenue streams as well as negotiating with prospective venues.

Would there be sufficient circuits?

Yes. Tracks such as Silverstone, Montreal, Indianapolis and Magny-Cours, currently unable to meet Ecclestone's demands, would be only too pleased to stage races, particularly if big names such as Ferrari and leading drivers were on the entry list.

Would the tracks be granted the necessary license by the FIA?

Yes, provided they met the necessary safety standards. Similarly, the FIA, as the governing body of all motor sport, would be obliged to license the Fota championship if all the regular conditions were met.

How would the existing championship fare?

Badly. Williams, Force India and a number of small, unknown teams would not attract sufficient interest.

Would the existing television companies be contractually obliged to cover the championship?

Good question. It depends on the terms of their contract with Ecclestone and, more important, what he is supposed to deliver to them in terms of entries.

The FIA say that Ferrari, Red Bull and Toro Rosso, whether they like it or not, are contractually bound to be part of their championship until 2012.

Ferrari dispute this, claiming that the FIA broke the terms of the agreement by unilaterally establishing the 2010 rules. The FIA does not agree. A lengthy legal battle would ensue.

Is a split a good thing?

Definitely not. Splits rarely work in any sport and motor racing is no exception. A split in Indycar completely destroyed top-level single-seater racing in North America. Both sides in formula one realize this and it will be the one thing driving the need to find a solution.

So, will this be solved?

Ecclestone could be the peacemaker. The betting is we will be watching world championship racing in 2010, much as we're seeing it now. In the meantime, this unnecessary stand-off is doing nothing for the image of formula one.

Future Of F1 In Doubt, Apocalypse Inevitable?

The simmering feud between the major Formula 1 teams and the sport’s sanctioning body has erupted into a full-blown civil war, with eight of the 10 teams announcing they are leaving at the end of the season to launch their own race series.

The Formula One Teams Association has been at odds with the Federation Internationale d’Automobile over a proposal by FIA President Max Mosley to adopt a budget cap. Mosley has long been obsessed with reining in the stratospheric cost of racing, but the big teams - led by Ferrari - strenuously opposed his plan to limit spending to 100 million Euros next year and 45 million Euros a year thereafter.

Proving he’s one of the dumbest guys to come down the pike, Mosley thought he could stare down the teams. On the eve of the British Grand Prix, the teams poked him in the eye.

The teams had provisionally agreed to compete next season and were willing to work with Mosely to meet his cost-cutting goal, but said, in effect, “Ditch any talk of the cap and and we’ll be on the grid for sure. Until then, we’re signing up conditionally.”

Mosley and F1 capo di tutti capi Bernie Eccelstone essentially told the teams, “Sign up unconditionally and then we’ll talk.” The FIA gave the teams until today to sign on the dotted line.

Instead, they voted to bolt.

“The wishes of the majority of the teams are ignored,” FOTA said in a statement. “These teams therefore have no alternative other than to commence the preparation for a new championship which reflects the values of its participants and partners.”

The FIA isn’t backing down. It says today’s the deadline for signing up to compete next season, and it fully intends to enforce it. What’s more, it plans to sue FOTA.

“The actions of FOTA as a whole, and Ferrari in particular, amount to serious violations of law including willful interference with contractual relations, direct breaches of Ferrari’s legal obligations and a grave violation of competition law,” the FIA said in a statement. “The FIA will be issuing legal proceedings without delay. Preparations for the 2010 FIA Formula One World Championship continue but publication of the final 2010 entry list will be put on hold while the FIA asserts its legal rights.”

That final entry list could be mighty short. The teams heading for the exit are Ferrari, McLaren Mercedes, BMW Sauber, Toyota, Renault, Red Bull, Toro Rosso and Brawn GP. The teams aren’t likely to back down - especially since Ferrari boss Luca di Montezemolo leads FOTA. Mosely’s hardball approach is doomed to failure.

“That’s not negotiating at all,” David Hobbs, a SpeedTV commentator and multiple racing champion, said recently. “That’s what’s been passing for diplomacy on the world stage these past few years. It’s like saying to those guys, ‘OK Iran, get rid of your nuclear program, and then we’ll talk about whether you should have it.’ That’s not diplomacy at all. Who’s going to agree to that?”

Hey Max and Bernie — when an elder sportsman of your sport compares your diplomatic skills to those of the Bush Administration, you’re doing it wrong.

It might just cost Mosley his job. The FIA World Council meets Wednesday, and his future as president could be up for discussion.

“I think the trouble is that Max has gone too far with this and the teams have suddenly said ‘I’m sorry, we can’t take it any more’,” Jackie Stewart, the three-time world champ and a longtime critic of Mosley, told Reuters today. “It may well be that Max Mosley has to go.

“I think a lot of people are kind of fed up with the dictatorial attitude,” Stewart added. “He has a great position of power but big trees do blow over.”

It isn’t just the teams and pundits coming down hard on the FIA. Some other heavy-hitters are siding with FOTA. The organizers of the Monaco Grand Prix — the premier event of the season — reportedly won’t stage a race next year if Ferrari isn’t on the grid. Eccelstone, who seems to exist only to squeeze every last cent out of F1’s global popularity, didn’t have much to say about the sport’s future.

“No idea. Speak to Max,” he told reporters at Silverstone, site of this weekend’s British Grand Prix, according to Reuters. Looks like Eccelstone is backing away slowly and leaving Mosley to fend for himself.

As of now, the teams officially signed up for next year are Williams and Force India alongside newcomers Team US F1, Campos Grand Prix and Manor Grand Prix. The upstarts have never competed at this level before and God only knows how far along they are in development of their cars. What’s more, everyone will be running Cosworth engines - even Williams and Force India, because they currently get their engines from Toyota and Mercedes, respectively.

So unless Mosley comes to his senses, what we’re left with is essentially a spec series featuring a bunch of teams that generate zero excitement and almost certainly won’t be racing in Monaco.

Heck of a job, Maxie!

Jenson Button Snatched Pole With Brawn F1 Car

Briton Jenson Button snatched pole position and his Brawn teammate Rubens Barrichello took second as the F1 newcomers seized starting grid control in Australian GP in Melbourne on Saturday. Button, backed by just three days' testing with a Brawn team hastily put together in the wake of a management buy-out of the Honda team, claimed his fourth career pole.

The 29-year-old, with just one victory in 153 GPs over nine seasons, has a marvelous chance for only his second GP triumph in Sunday's Melbourne race. It is the first time since 1970 that a new team has captured the pole in its first F1 race.

Button swept around the Albert Street circuit in one minute 26.202 seconds, ahead of Barrichello's best of 1:26.505.

Rising German star Sebastian Vettel was third quickest in his Red Bull in 1:26.830 in an eventful hour-long qualifying with world champion Lewis Hamilton forced to start off the back row of Sunday's grid after gearbox problems.

The British star failed to come out of the McLaren team garage for the second section of qualifying and was credited with 15th position, but he incurred a mandatory five-place grid penalty and was relegated to 20th.

On a day of drama, Toyota's Timo Glock and Jarno Trulli were also stripped of their grid positions after qualifying sixth and eighth respectively. It followed technical inspections by the sport's governing body, the FIA, which found a flexible wing infringement.

World constructors champions Ferrari were also left behind in the slipstream of the two Brawns with Felipe Massa to come off the third row and Kimi Raikkonen one row behind.

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pic 1: Sebastien Buemi Toro Rosso Australian GP, Melbourne
pic 2: Sebastien Bourdais Toro Rosso Australian GP, Melbourne

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pic 1: Robert Kubica BMW Sauber Australian GP, Melbourne 2009
pic 2: Nick Heidfeld BMW Sauber Australian GP, Melbourne 2009

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pic 1: Nico Rosberg Williams Australian GP, Melbourne 2009
pic 2: Nick Heidfeld BMW Sauber Australian GP, Melbourne 2009

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pic 1: Kimi Raikkonen Ferrari Australian GP, Melbourne 2009
pic 2: Kimi Raikkonen Ferrari Australian GP, Melbourne 2009

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pic 1: Jenson Button Brawn Racing Australian GP, Melbourne 2009
pic 2: Jenson Button Brawn Racing Australian GP, Melbourne 2009

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pic 1: Jarno Trulli Toyota Australian GP, Melbourne 2009
pic 2: Jarno Trulli Toyota Australian GP, Melbourne 2009

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pic 1: Jarno Trulli Toyota Australian GP, Melbourne 2009
pic 2: Heikki Kovalainen McLaren Mercedes Australian GP

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pic 1: Giancarlo Fisichella Force India Australian GP, Melbourne 2009
pic 2: Adrian Sutil Force India Australian GP, Melbourne 2009