F1 on the Brink: Liberty vs FIA in High-Stakes Andretti Entry Battle
Oct.5 - Formula 1, the teams and the FIA are heading for a major dispute over the issue of green-lighting Andretti-Cadillac's entry to the sport.
The FIA has approved Andretti's bid, but the matter is now passing into the hands of F1 owner Liberty Media for what are set to be thorny commercial negotiations.
"Stefano Domenicali and FIA president Mohammed ben Sulayem are like cats and dogs," an unnamed insider told f1-insider.com.
"This dispute over a possible entry of the Andretti team could now cause the spark to explode."
It is clear that Liberty and many of the teams are basically opposed to Andretti's entry on the basis that it robs the existing competitors of value.
"An eleventh team means that not only does each team have to give up more of the money pie, but also that the value of each individual team falls," said Red Bull's Dr Helmut Marko. "Of course nobody wants that."
He also says there are logistical problems with Andretti entering F1.
"Most racetracks have maxed out space already," said the 80-year-old Austrian. "Where can we accommodate an additional team in the already very narrow pitlanes?
"The hospitality facilities in the paddock would probably have to be reduced as well. And the teams have no interest in that."
The exception, however, is Renault, who are keen to supply Andretti with engines and other technical support.
"There will be a power struggle," the unnamed insider predicts, adding that another problem is that Ben Sulayem has already indicated that there is the matter of European Union anti-competitive measures to factor in.
"It could also end in a long-running court battle," the insider added. "And the sport will be the loser."
Well-known Russian F1 insider Alexey Popov says he was taken aback by Liberty's reaction so far to the FIA's green-light for Andretti.
"The problem is that Formula 1 itself immediately said 'Well, we take note of that, now we'll look into it'. They've taken note! Imagine that," he said on his Youtube channel.
"You already know my opinion about the teams," Popov added. "All of them have wonderful people but their business interests are their business interests."
He also noted that F1 may be looking into eventually ending the entire phenomenon of the sport being shown by various broadcasters on free-to-air television.
"There is this rumour that Apple is offering two billion a year," said Popov. "But with the condition that they show everything. That is, no more television.
"No country will have its own television broadcaster," he explained. "Want to watch Formula 1? Login into Apple TV and pay a fee.
"I'm not sure that is good news for the fans."
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Once again, the same pit buildings had enough space to accommodate twelve teams in 2010-12, so one fewer will equally fit in the future.
"Login into Apple TV and pay a fee"
For me, absolutely no chance! If that comes to pass, I will not be blackmailed by Apple to watch F1 on their terms. I will read about it in magazines and newspapers after the race!
This suggestion from Apple is greed at the extreme level. IMO it will sound the death knell for F1.
On a positive note, it would be good for the planet. I like to think positively like Stroppy
Well, we've already established that you live on a different planet. lol
Smokey, just the 'greater fool' theory working its way to a climax. F1 will not disappear, but the next 'owner' will suffer a financial disaster. Probably 6-8 years from now.
One thing for sure, I'm not buying an Apple tv or subscription. After 55 yrs of fealty, the product is just not worth it. Sad.
Hell as long as i can see f1 on iptv i dont care
Shrop' tell me about this 'iptv'. Can I do that in the US???
That Formula 1 is "owned" by anyone is hugely disappointing. Concentration of control is never a good thing - unless of course you are a Dictator.
The existing 10 teams would disagree that an 11th team is a good idea - something about getting a smaller piece of the revenue-pie. Yet the Andretti team would draw in a broad spectrum of American viewers and a corresponding bump in revenue. So, I'm guessing the money would stay about the same.
So, Liberty is being a poo-poo head about it and should welcome as many teams as are able to make the grade.
And sharing of the $200 million price tag out as well.
My guess is a ploy to bump the 'franchise fee' big time. Mikey is using US investor $$$ so he is likely to pay. As for splitting the investor pie, that's hocum. Split the $$$ up among the top 10 in the WCC. Easy peasy, and would promote competition all the way through the field.
And as I understand it, the pie split would only take effect 3 years after a team enters, So no losses for three years, by which time new concorde agreement, where they can argue the case for/against , all blown up for the media Imo
Let's remember that Liberty IS the media...part of Malone's media giant. I suppose that they can easily manipulate the press since most journo's have no clue about F1. How a race team...any race team...can be a Billion $$$ franchise is beyond comprehension.
From an American perspective, I long for the old days when NBCsports covered F1. Better commentators, Wll Buxton was brillant covering the inside news of what was happening. SkySports sucks. It is anyone’s guess what appletv will provide. Liberty is going to ruin F1 with the chase for more revenue. What a shame! As far as Andretti, the big teams will never go for it. Too bad, the Andretti name was part of F1 for a long time. Money always trumps history. Change for change sake, not always for the best.
Susan, re Andretti,IMO this is just a money grab by Liberty & the big teams.and most likely Andretti/GM will be on the grid but at much greater expense. Since the money is coming from investors and not Andretti, Mikey will likely pay up. He shouldn't, but he will. This whole thing has a nasty taste. As Shrop' pointed out, there is no revenue sharing for a new team for 3 years, which post-dates the next Concorde agreement. The kerfuffle could end up a huge court battle. We'll see.
I still don't understand why Andretti didn't just take a pile of money to Gene Haas and pile it up on his desk.
I still don't understand why Andretti didn't just take a pile of money to Gene Haas and pile it up on his desk.
That would have been the first choice , ultimately cheaper and quicker, Gene obviously said No, and lets face it , GH could sell the team tomorrow for a huge profit to no end of interested parties
From what I’ve read Haas wasn’t interested. Strange since they don’t have such a limited budget.
Extend prize money payouts down to 11th place. Currently, the 10th place team supposedly gets 6% of the prize pool. I would allocate 4% for finishing 11th while adjusting the total pot to ensure it doesn’t impact the existing prize money distribution.
The participation of Andretti-Cadillac should bring about ample opportunities to attract new viewers and generate sufficient revenue to more than cover the costs.
And this called SPORT, I call it greed bottom line.
There is no more Sport in the world, money rules.
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