Ferrari Mailing List: F1 Lawsuit

[Larry B (larrybard]

Formula One in Turmoil as 8 Teams Break Away 
By THE ASSOCIATED PRESS

Filed at 4:52 p.m. ET

 

SILVERSTONE, England (AP) -- Formula One intends to sue the eight teams that 
announced plans for a rival series next season -- the biggest crisis to engulf 
the sport since the championship began in 1950.

 

The governing body accused the Formula One Teams Association of ''serious 
violations of law.'' The breakaway came after Ferrari, championship leader 
Brawn GP and six other teams failed to resolve a dispute over the introduction 
of a budget cap for next season.

 

The ruling body, known as FIA, cited ''willful interference with contractual 
relations, direct breaches of Ferrari's legal obligations and a grave violation 
of competition law.''

 

Ferrari has been part of Formula One from the outset. In addition to Brawn GP, 
the rebel group includes McLaren, Renault, Toyota, BMW Sauber, Red Bull Racing 
and Toro Rosso.

 

F1 would lose some of its biggest names to the rival series, including reigning 
world champ Lewis Hamilton, championship leader Jenson Button of Brawn, 
Ferrari's Felipe Massa and Kimi Raikkonen and Red Bull rising star Sebastian 
Vettel.

 

FOTA said its new series will have ''transparent governance, one set of 
regulations, encourage more entrants and listen to the wishes of the fans, 
including offering lower prices for spectators worldwide, partners and other 
important stakeholders.''

FIA has delayed publishing the final entry list for the 2010 season and said it 
will begin legal proceedings ''without delay.'' Ferrari is already countersuing 
to ''protect its contractual rights.''

 

FIA president Max Mosley is ''completely confident'' the breakaway series will 
not come to pass, predicting sponsor pressure will end the revolt.

 

''In the end, people do what it's in their interests to do and it's in the 
interest of teams to be in F1 world championship, and there is actually no 
fundamental, or even important issue, preventing them from taking part,'' 
Mosley said.

 

''It's all about personalities and power and who can grab what from whom, which 
is easy when nothing's at stake. But, when it comes to the first race and it's 
make-your-mind-up time, they will be there.''

 

Mosley plans to stay as FIA president beyond October to ensure the 2010 
championship begins as usual -- with the eight breakaway teams.

 

''I'd be much more likely to step down if there was peace because I am nearly 
70,'' he said.

 

Negotiations stalled over plans for a voluntary $65 million budget cap. The 
FOTA teams entered the 2010 series provided there would be changes to the 
budget cap. But FIA did not give ground, saying the sport cannot survive in 
this economy without such restrictions. The eight FOTA teams said they would 
not ''compromise on the fundamental values of the sport.''

 

Brawn GP chief executive Nick Fry said Friday his group negotiated ''at some 
length in good faith and not quite got to where we want to be.'' He said he 
would like talks to continue, but the ''ball is now in Max's court.''

 

Of the existing teams, Williams and Force India have broken ranks with FOTA and 
are unconditionally entered for 2010. They will be joined by three new outfits 
-- Campos Racing, Team US F1 and Manor F1 Team. The exodus means that teams 
that were overlooked for 2010 may now get another chance.

 

The split will have serious ramifications for broadcasters with rights to what 
will be a diminished F1 without big-name teams and drivers. Also, the venues 
hosting F1 races may want to hold breakaway events.

 

The breakaway teams announced their decision after meeting Thursday night near 
Silverstone. Red Bull team principal Christian Horner said there was ''no 
alternative.''

 

''If you want to keep competing then you've got to look at something else,'' he 
said.

 

FOTA criticized the FIA's ''uncompromising'' stance and its attempts, along 
with the commercial rights holder group headed by Bernie Ecclestone, to divide 
its member teams.

 

Fry said that because Brawn is a smaller team, complying with FIA restrictions 
wouldn't have been a problem. But he wanted to keep the new team aligned with 
the sport's leading entrants.

 

''We want to compete against the best in the business,'' said Fry, whose Brawn 
team emerged from the ashes of Honda this year. ''The reason that we were very 
keen to be with the group of eight is that it contains the best motor racing 
teams in the world.''