Posted on July 27, 2013
XPB.CC

A statement issued this morning suggests that the protracted battle over the new Concorde Agreement, the contract that binds together the FIA, teams and commercial rights holder, is about to be signed.

The seven year deal should be formalised in the next weeks, according to the statement,

“The Formula One Group and the FIA have signed an agreement setting out the framework for implementation of the 2013 Concorde Agreement.

“This agreement will come into force upon approval by the respective governing bodies of the signatory parties in the coming weeks.”

It has taken a long time to get to this point and there have been plenty of wrangles and confrontations between Ecclestone and FIA president Jean Todt.

“There have obviously been lots of things we’ve had to sort out,” said Ecclestone. “It’s a longer term thing, and this forms most of the Concorde Agreement for the teams as well, so we can get the whole lot put to bed now.”

The teams are set to share around 63% of the profits of F1. Ecclestone has had commercial deals in place with the F1 teams – except Marussia – for over a year, but the details of the division between FIA and FOM have taken some time to resolve. The old agreement expired in December last year.

The devil will be in the detail in terms of what areas of responsibilty may have shifted – Ecclestone was very keen to get control of all press and photographer accreditation, for example – but it’s a positive for the sport if the agreement can be signed and for CVC, the majority owners of Formula 1 Group as they will be able to consider floating the company on the stock market, once the next steps in the situation over Ecclestone’s indictment in Germany is clarified.

The prosecutors have indicted him, now a judge must decide whether to bring him to trial and set a date.

At that point he may be asked to step down temporarily as CEO of the F1 business pending resolution of his legal position, or he may not, time will tell.

The paddock in Hungary has been buzzing with talk of who might succeed him if that were to happen, with names from the paddock like Christian Horner being bandied around by Ecclestone allies.

One name which seems to have widespread traction in the paddock is Peter Brabeck-Letmathe, the 68 year old Chairman and former Chief executive of Nestle, who is also chairman of F1′s board.

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F1 moves close to Concorde Agreement as Ecclestone and Todt come together
22 Responses

  1.   1. Posted By: Steve
        Date: July 27th, 2013 @ 11:51 am 

    James, how can the FIA be happy that Bernie is excluding the last placed team from Prize money?

    I just don’t see how anyone can think that is best for the sport..

    [Reply]


  2.   2. Posted By: Tornillo Amarillo
        Date: July 27th, 2013 @ 12:09 pm 

    James, is Marussia -all the teams- included in the Concorde Agreement this season and in the future?

    [Reply]

    Tornillo Amarillo Reply:

    * Actually the 11th team is Caterham, is it included?

    [Reply]


  3.   3. Posted By: Andrew Halliday
        Date: July 27th, 2013 @ 12:40 pm 

    Is that a strange handshake in the photo or are they arm wrestling?

    [Reply]

    Random 79 Reply:

    “You’ll get this agreement Bernie when you pry it from my cold dead fingers…”

    [Reply]


  4.   4. Posted By: Jake
        Date: July 27th, 2013 @ 2:58 pm 

    I hear Ross Brawn is looking for a job.

    [Reply]

    franed Reply:

    Well he doesn’t need a job, he is a multi millionaire from selling BrawnGP to Merc.

    [Reply]

    Jake Reply:

    People with the drive like Ross can’t retire cold turkey they have to edge into it, a new challenge will reinvigorate him.

    [Reply]

    Ben Reply:

    Bernie’s a multi billionaire, don’t suppose he needs a job either ;)

    [Reply]


  5.   5. Posted By: Briggykins
        Date: July 27th, 2013 @ 3:26 pm 

    Why does Bernie want control of press accreditation? Isn’t that a fairly minor piece of the f1 pie?

    [Reply]

    franed Reply:

    Controlling the press is the first step in forming a dictatorship. Once you cannot trust what you read, who do you believe?

    A man going to face charges that could have devastating effects on the value of FOM if he is found guilty. In fact Gribkowski’s evidence alone has been enough to start rumours of two separate legal actions, BLB and one in the USA (Bluewaters) the foundation of which might be that CVC has no right to own FOM shares and that they bid higher and have consequently lost billions in turnover that CVC raked in. Fortunately Bernie has a magic fax which looks like a get out of jail free card. But that won’t help him on the bribery charge, Grib has admitted receiving the money.

    [Reply]


  6.   6. Posted By: franed
        Date: July 27th, 2013 @ 3:45 pm 

    Ominous if Bernie controls the press accreditation, the start of restrictive reporting, the end of free press. Why else would he want it? Will that cover all media reporters?

    Does a float that has it’s assets buried under so many layers of holding companies really entice anyone?

    [Reply]


  7.   7. Posted By: Dai Dactic
        Date: July 27th, 2013 @ 4:49 pm 

    For heaven’s sake Bernie, Jean . . .

    Take your time and don’t rush into making hasty, ill-considered agreements . . .

    [Reply]


  8.   8. Posted By: Philip
        Date: July 27th, 2013 @ 7:34 pm 

    “The paddock in Hungary has been buzzing with talk of who might succeed him if that were to happen, with names from the paddock like Christian Horner being bandied around by Ecclestone allies.

    One name which seems to have widespread traction in the paddock is Peter Brabeck -Letmathe, the 68 year old Chairman and former Chief executive of Nestle, who is also chairman of F1′s board.”

    Seen this James? NBC says it will be an outsider
    http://motorsportstalk.nbcsports.com/2013/07/23/cvc-looking-outside-f1-for-ecclestones-replacement/

    [Reply]


  9.   9. Posted By: Elie
        Date: July 28th, 2013 @ 6:03 am 

    As much as I dislike hearing Bernie wants to control the media, photography & press coverage- he along with CVC are the commercial rights holders-so from that angle it makes perfect sense. I think where ithere s always conflict is when commercial considerations are prioritised over how the sporting codes codes.

    This Concorde agreement is Bernies last and how odd it must be that F1 is tied into the decisions of someone who won’t be around to control them – regardless of the indictment.

    [Reply]


  10.   10. Posted By: moxlox
        Date: July 28th, 2013 @ 9:59 am 

    They don’t look like they get on in that picture, do they?!!

    [Reply]


  11.   11. Posted By: Nick_F1
        Date: July 28th, 2013 @ 11:23 am 

    Hi James,

    I just wonder if Todt’s posisition became stronger in light of the last event where Bernie was indicted?

    And that is why now we see this agreement is to be signed, and possibly with some more benefits for the FIA than it could be without the case where Bernie being indicted?

    [Reply]

    Neil Jenney Reply:

    +1

    [Reply]


  12.   12. Posted By: Richard
        Date: July 29th, 2013 @ 6:22 am 

    In the picture, Bernie looks a bit desperate to me.

    [Reply]


  13.   13. Posted By: Mike from Colombia
        Date: July 29th, 2013 @ 1:45 pm 

    Superb photo….!

    Bernie reaching out and Todt ignoring him and focusing on the ongoing business of F1.

    [Reply]


  14.   14. Posted By: Chris C
        Date: July 29th, 2013 @ 2:28 pm 

    Hi James

    As I work for Nestle and I have met with Brabeck his name being considered seems a bit odd. He is a serious business man, very far away in terms of behavior from the tricks of the car dealer Bernie. So such a change would move the F1 in a different direction with less of under the table dealings.

    Of course if CVC wants to go public in a stock market having a succesful person originating from a long listed company makes sense but I feel many people that have a closer link to the sport or entertainment industry would fit the profile easier.

    On a different topic, in this pic but also on the footage of the Hungarian GP, Jean Todt looks quite frail. Is his health alright?

    [Reply]

    Aaron Reply:

    Considering it’s chief executive is currently being charged with bribery in a German court, I think a little bit less under the table dealings may be exactly what CVC is looking for.

    [Reply]

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