7 replies to this topic

[prpr]

If the Formula One field falls below 20 cars, is Formula One Management in breach of its contract with the FIA? What, if any, are the consequences for FOM? Could the FIA seek compensation from FOM? What would it take for the F1 rights to revert to the FIA (aside from buying them back)? Similarly, is FOM in breach of its contracts with the circuits?

[Imateria]

I've not heard of any clause in the contract between the FIA and FOM regarding car numbers, Todt has previously described it as water tight which isn't good, but I do believe there requirements between FOM and the TV companies and race promotors for about 20 cars to compete. I've not read of anything specific regarding penalties if there isn't 20 cars on the grid, the contracts tend to be very hush-hush, but I'd assume it's a case of "no cars, no pay".

 

For the last few races I assume it's a case of force majeure, but for next I expect there wouldbe problems if the sport can't get back to 20 for Melbourne. 

[kledaras]

its 16 cars, bernie has to pay some if it falls below that.

[BRG]

Todt has previously described it as water tight which isn't good

 

Didn't they say that about the Titanic?

[Collombin]

Not until after it sank, bizarrely.

[PeterGrahamQuill]

If the Formula One field falls below 20 cars, is Formula One Management in breach of its contract with the FIA? What, if any, are the consequences for FOM? Could the FIA seek compensation from FOM? What would it take for the F1 rights to revert to the FIA (aside from buying them back)? Similarly, is FOM in breach of its contracts with the circuits?

Just dug this up and if you scroll to the bottom there are links to what seem to be pages from F1 contracts saying that 16 cars is the minimum. Theyre still some way off that:
http://www.forbes.co...administration/

[Felix]

This

 

Said clause calls on teams to enter third cars in the event that entries drop below 20 (defined as the minimum number), and that they would be required do so with "sufficient advance notice (not less than 60 days) [being] given in order for additional cars to be prepared [for a race]". Thus the CRH could, by rights, instruct selected teams to enter third cars as late as early January next year ahead of Melbourne's season opener on March 15.

 

Clause 4.2 also outlines compensation for third cars, namely 50 per cent of the travel and freight benefits enjoyed by qualifying teams for two cars, but with a crucial caveat:

No team which enters an additional car shall be entitled to any points in the [two FIA championships] arising out of the additional car's performance in any event, and any points which the additional car would have earned but for this provision shall be declared null and void and shall not be awarded to any other car or team in the same event. Thus points notionally scored by a third entry fall away completely.

 

from http://plus.autospor...appen-overnight

 

and this

 

However, at the heart of much of this confusion are clauses that on one side commit teams to entering third cars if grids drop to below 20 cars, while broadcaster and race promoter contracts have 16-car triggers. By the same token, suggestions that Marussia could qualify for £40m in FOM monies if it places ninth in the championship are wide of the mark: Last year Sauber, which placed seventh, earned £32m.

A draft race contract seen by this writer states: "The Commercial Rights Holder shall use reasonable endeavours to ensure either that at least sixteen cars participate in the Event or [new team clauses] are observed by the parties thereto", and it is believed TV contracts contain identical clauses.

 

from http://plus.autospor...ere-predictable

 

provides both sides to a complex story

[PeterGrahamQuill]

This

 

Said clause calls on teams to enter third cars in the event that entries drop below 20 (defined as the minimum number), and that they would be required do so with "sufficient advance notice (not less than 60 days) [being] given in order for additional cars to be prepared [for a race]". Thus the CRH could, by rights, instruct selected teams to enter third cars as late as early January next year ahead of Melbourne's season opener on March 15.

 

Clause 4.2 also outlines compensation for third cars, namely 50 per cent of the travel and freight benefits enjoyed by qualifying teams for two cars, but with a crucial caveat:

No team which enters an additional car shall be entitled to any points in the [two FIA championships] arising out of the additional car's performance in any event, and any points which the additional car would have earned but for this provision shall be declared null and void and shall not be awarded to any other car or team in the same event. Thus points notionally scored by a third entry fall away completely.

 

from http://plus.autospor...appen-overnight

 

and this

 

However, at the heart of much of this confusion are clauses that on one side commit teams to entering third cars if grids drop to below 20 cars, while broadcaster and race promoter contracts have 16-car triggers. By the same token, suggestions that Marussia could qualify for £40m in FOM monies if it places ninth in the championship are wide of the mark: Last year Sauber, which placed seventh, earned £32m.

A draft race contract seen by this writer states: "The Commercial Rights Holder shall use reasonable endeavours to ensure either that at least sixteen cars participate in the Event or [new team clauses] are observed by the parties thereto", and it is believed TV contracts contain identical clauses.

 

from http://plus.autospor...ere-predictable

 

provides both sides to a complex story

Thanks! But it doesn't tell anything about whether Formula One Management in breach of its contract with the FIA if the field falls below 20 cars which is what the OP asked. The only place Ive actually seen any evidence for that is in the piece I linked to. Here's the direct link to the page from it
http://www.scribd.co...rella-Agreement