FIA–FOTA dispute
Encyclopedia
The FIA–FOTA dispute was a series of ongoing political clashes between the Fédération Internationale de l'Automobile
Fédération Internationale de l'Automobile
The Fédération Internationale de l'Automobile is a non-profit association established as the Association Internationale des Automobile Clubs Reconnus on 20 June 1904 to represent the interests of motoring organisations and motor car users...

 (FIA) and Formula One Teams Association
Formula One Teams Association
The Formula One Teams Association is a group of Formula One teams that was formed at a meeting in Maranello on 29 July 2008. This organisation gives the teams a united voice in their ongoing discussions with the FIA and The Formula One Group regarding the future of Formula One. It is headed by...

 (FOTA) over proposed changes to the rules and regulations for the 2010 Formula One season
2010 Formula One season
The 2010 Formula One season was the 61st Formula One season of World Championship motor racing competition. Red Bull Racing won its maiden Constructors' Championship with a one-two finish in Brazil, while Red Bull Racing's Sebastian Vettel won the Drivers' Championship after winning the final race...

. The debate began over the introduction of a budget cap and culminated on the eve of the 2009 British Grand Prix
2009 British Grand Prix
The 2009 Santander British Grand Prix was the eighth race of the 2009 Formula One season. It was held on 21 June 2009 at Silverstone Circuit in Northamptonshire, England. This was scheduled to be the last British Grand Prix to be held at Silverstone, before the event moved to Donington Park for the...

 with the FOTA teams announcing their intention to form their own rival breakaway series
Grand Prix World Championship
The Grand Prix World Championship, often abbreviated to GPWC, is a general term used to describe any proposed alternative world championship auto racing series to rival Formula One.-1997-2005:...

. From that point onwards, the dispute was eased to the point at which a new Concorde Agreement
Concorde Agreement
The Concorde Agreement is a contract between the Fédération Internationale de l'Automobile , the Formula One teams and the Formula One Administration which dictates the terms by which the teams compete in races and take their share of the television revenues and prize money...

 was signed in August 2009.

Introduction and pre-history

The origins of the dispute may be traced as far back as the middle of 2008 when regulations that would see the single biggest overhaul in the sport's sixty-year history were approved for the 2009 season. Early in 2009, FIA President Max Mosley
Max Mosley
Max Rufus Mosley is the former president of the Fédération Internationale de l'Automobile , a non-profit association that represents the interests of motoring organisations and car users worldwide...

 put forth a proposal for 2010 intended to secure the sport's future in the face of the ongoing economic situation. The proposal included an optional budget cap of thirty-million Euros, with greater technical and design freedoms allowed to teams who nominated to use it. This was a point of contention among the teams, who objected to what was essentially two different sets of rules within the championship.

In response to this, Ferrari
Scuderia Ferrari
Scuderia Ferrari is the racing team division of the Ferrari automobile marque. The team currently only races in Formula One but has competed in numerous classes of motorsport since its formation in 1929, including sportscar racing....

 filed an injunction with a French court in Paris in an attempt to stop the proposed regulations from being implemented. The courts ruled that Ferrari's objections were baseless; given its history and close association with the sport, the team had been awarded a technical veto a decade beforehand that would have allowed them to prevent any regulation changes they disagreed with, but the court ruled that as Ferrari had not used the veto at the previous meeting of the FIA World Motor Sport Council
FIA World Motor Sport Council
The World Motor Sport Council is the most powerful body of the Fédération Internationale de l'Automobile . It decides on rules and regulations for the FIA's various racing series, from karting to Formula One. Its membership is chosen by the FIA General Assembly, which contains representatives from...

, they did not have grounds for a legal challenge.

FOTA's objections and withdrawal

Six of the FOTA teams – Ferrari
Scuderia Ferrari
Scuderia Ferrari is the racing team division of the Ferrari automobile marque. The team currently only races in Formula One but has competed in numerous classes of motorsport since its formation in 1929, including sportscar racing....

, BMW Sauber
BMW Sauber
BMW has been involved in Formula One in a number of capacities since the inauguration of the World Drivers' Championship in . The company entered occasional races in the 1950s and 1960s , before building the BMW M12/13 inline-four turbocharged engine in the 1980s...

, Toyota, Renault
Renault F1
Lotus Renault GP, formerly the Renault F1 Team, is a British Formula One racing team. The Oxfordshire-based team can trace its roots back through the Benetton team of the late 1980s and 1990s to the Toleman team of the early 1980s. Renault had also competed in various forms since , before taking...

, Red Bull
Red Bull Racing
Red Bull Racing is a Formula One racing team based in Milton Keynes, England which currently holds an Austrian licence. It is, along with Scuderia Toro Rosso, one of two teams owned by beverage company Red Bull GmbH. The team have won two Constructors' Championship titles, in and , becoming the...

 and Toro Rosso
Scuderia Toro Rosso
Scuderia Toro Rosso , also known simply as Toro Rosso or by its abbreviation STR, is an Italian Formula One racing team...

 announced their intentions to withdraw from the 2010 championship by virtue of not submitting entries. At the time, Bernie Ecclestone believed a compromise with the teams may be possible, but on May 15, the FIA failed to reach a settlement with the teams.

The ten FOTA teams met on the weekend of the Monaco Grand Prix
2009 Monaco Grand Prix
The 2009 Monaco Grand Prix was a Formula One motor race that was held on the 24 May, 2009 at the Circuit de Monaco, in Monaco. The race, which was contested over 78 laps, was the sixth round of the 2009 Formula One season...

, where they unanimously decided to withdraw by the end of the 2009 season unless the budget cap rules were changed, citing their opposition to the "two-tier" system and the need for continuity within the rules from one season to the next as their reasons. However, Williams submitted an unconditional entry to the FIA less than three days later, claiming that they existed solely for the purposes of racing and that withdrawing was against their purpose as a racing team. They were subsequently suspended from FOTA while negotiations continued. Force India
Force India
Sahara Force India Formula One Team, the trading name of Force India Formula One Team Limited, is a Formula One racing team based in Silverstone, United Kingdom which currently holds an Indian licence. The team was formed in October 2007 when a consortium led by Indian businessman Vijay Mallya and...

 submitted an unconditional entry of its own on June 5. They, too, were suspended from FOTA for their actions. All of the remaining FOTA teams eventually submitted conditional entries for the 2010 season.

New teams for 2010

Concurrently to this, the FIA intended to open the 2010 grid up to three new teams, and received entries from fifteen interested parties, including Prodrive
Prodrive F1
Prodrive F1 Team is the name of a proposed Formula One team to be run by Prodrive. The team was selected by the FIA in 2006 to be the 12th entry into the 2008 Formula One world championship...

, Lola, USF1 and Brabham. The 2010 entry list was published on June 12, and included new teams Campos Grand Prix
Campos Grand Prix
HRT F1 Team, formerly known as Campos Meta 1 and Hispania Racing, is a Spanish Formula One team founded by former driver Adrián Campos. It was sold to José Ramón Carabante before its debut in 2010, and to then to investment group Thesan Capital in July 2011...

, Manor Grand Prix and USF1. The FIA also claimed that Ferrari
Scuderia Ferrari
Scuderia Ferrari is the racing team division of the Ferrari automobile marque. The team currently only races in Formula One but has competed in numerous classes of motorsport since its formation in 1929, including sportscar racing....

, Red Bull
Red Bull Racing
Red Bull Racing is a Formula One racing team based in Milton Keynes, England which currently holds an Austrian licence. It is, along with Scuderia Toro Rosso, one of two teams owned by beverage company Red Bull GmbH. The team have won two Constructors' Championship titles, in and , becoming the...

 and Toro Rosso
Scuderia Toro Rosso
Scuderia Toro Rosso , also known simply as Toro Rosso or by its abbreviation STR, is an Italian Formula One racing team...

 were contractually bound to compete until 2012 and so included them on the entry list, and gave remaining teams Brawn
Brawn GP
Brawn GP Formula One Team, the trading name of Brawn GP Limited, was a Formula One motor racing team and constructor, created by a management buyout of Honda Racing F1 Team. It only competed in the 2009 Formula One World Championship, with drivers Jenson Button and Rubens Barrichello. The team...

, McLaren
McLaren
McLaren Racing Limited, trading as Vodafone McLaren Mercedes, is a British Formula One team based in Woking, Surrey, United Kingdom. McLaren is best known as a Formula One constructor but has also competed and won in the Indianapolis 500 and Canadian-American Challenge Cup...

-Mercedes
Mercedes-Benz in motorsport
Throughout its long history, Mercedes-Benz has been involved in a range of motorsport activities, including sportscar racing and rallying, and is currently active in Formula Three, DTM and Formula One.-Early history:...

, Renault
Renault F1
Lotus Renault GP, formerly the Renault F1 Team, is a British Formula One racing team. The Oxfordshire-based team can trace its roots back through the Benetton team of the late 1980s and 1990s to the Toleman team of the early 1980s. Renault had also competed in various forms since , before taking...

 and Toyota one week to remove the conditions attached to their entries. As many as four provisional teams were said to be in negotiations with the FIA in the event of one or more FOTA teams withdrawing for 2010; whether over the budget cap, a downturn in their road car division or other extenuating circumstances, Renault were reported to have informed suppliers of a potential withdrawal at the end of the season.

On June 16, the FIA announced its intentions to continue ahead with the budget cap, now raised to forty-five million Euros after talks with FOTA once again failed to find a resolution. Claiming that a solution had been put forth a week previously, the FIA accused factions within FOTA of sabotaging the negotiations, and further claimed that the organisation was attempting to gain control over the governance and commercial rights to the sport, a practice it declared unacceptable.

Threat of breakaway series

In the week preceding the British Grand Prix
2009 British Grand Prix
The 2009 Santander British Grand Prix was the eighth race of the 2009 Formula One season. It was held on 21 June 2009 at Silverstone Circuit in Northamptonshire, England. This was scheduled to be the last British Grand Prix to be held at Silverstone, before the event moved to Donington Park for the...

, the eight remaining FOTA teams wrote to the FIA, calling for an urgent compromise to the situation and requesting an extension to the deadline in order to negotiate a new Concorde Agreement
Concorde Agreement
The Concorde Agreement is a contract between the Fédération Internationale de l'Automobile , the Formula One teams and the Formula One Administration which dictates the terms by which the teams compete in races and take their share of the television revenues and prize money...

. The letter made it clear that the FOTA teams were willing to commit until 2012 and supply new teams with technical knowledge and advice. The FIA replied within two hours, indicating that it was willing to deal with FOTA, but stated that the June 19 deadline would stand owing to obligations to the potential new teams and the inability to agree on a new Concorde Agreement in such a short period of time. Mosley's proposal would see the introduction of a budget cap, engine and gearbox rules remaining fixed and the allowance of tyre warmers which were previously expected to be banned for 2010. In addition, Mosley stated a willingness to review the FIA's International Court of Appeal and abandon a controversial appendix to the 2010 rules that would give the FIA the unconditional authority to set rules.

However, after a meeting at Renault's base of operations in Enstone, the eight FOTA teams announced their intentions to press ahead with a breakaway series, similar to the divisions in American open-wheel racing leagues between USAC and CART
Champ Car
Champ Car was the name for a class and specification of open wheel cars used in American Championship Car Racing for many decades, primarily for use in the Indianapolis 500 auto race...

 in 1979 (similar in that most "name" teams and drivers left for the new championship), or CART and the IRL in 1996. After threatening legal action, the FIA renounced its position, offering to talk with the teams. FOTA, however, disagreed, claiming that the decision had already been made and that they would not be changing their minds, though Red Bull's Christian Horner stated that he felt it was foolish to commit to everything too soon. Commercial rights holder Bernie Ecclestone later vowed to ensure the future of the sport, claiming that the ongoing issues between the FIA and FOTA amounted to "basically, nothing".

The conflict came to an apparent head on June 24 at the meeting of the World Motorsport Council in Paris, with FOTA agreeing to remain within the championship and FIA President Max Mosley agreeing not to stand for re-election in October. However, the resolution was thrown into potential jeopardy just twenty-four hours later, with Mosley demanding FOTA in general and Luca di Montezemolo
Luca di Montezemolo
Luca Cordero di Montezemolo is an Italian businessman and Chairman of Ferrari. He was also Chairman of Fiat S.p.A from 2004 to 2010 and President of Confindustria from 2004 to 2008 and FIEG. He comes from an aristocratic family from the region of Piedmont in Italy...

 in particular apologise for misleading the media, suggesting Mosley to be a 'dictator' and that he would have no involvement in Formula One until he stepped down as President, no involvement in the FIA afterwards and that he was forced out of office.

Further complications

On 8 July, the FOTA group of teams walked out of a meeting with the FIA about future rules.
FOTA were informed that they were not entered for the 2010 season and could therefore have no input on regulatory discussions. It was later announced that plans for a breakaway series were still being pursued. However, on the weekend of the German Grand Prix, FOTA teams expressed confidence in ending the ongoing debate, stating their intentions to negotiate the terms of a new Concorde Agreement directly with CVC, the company that controls the commercial rights to the sport, with a resolution possibly being found in time for the Hungarian Grand Prix. Later that same day, Bernie Ecclestone announced that he would be involved in the process and vowed to have the sport's future secured with a new Concorde Agreement signed within forty-eight hours, ending the breakaway threat, and on July 15, it was confirmed that Max Mosley would step down from the FIA Presidency.

On July 6, an un-named team made accusations against the FIA that new teams had been selected on the basis that they had no association with the current manufacturers. On July 12, unsuccessful applicants N.Technology
N.Technology
N.Technology is an Italian auto racing team, founded by Mauro Sipsz and Monica Bregoli.- Team history :N.Technology were set up to manage the worldwide sporting activities of the Fiat Group...

 filed a legal challenge against the FIA in Paris, claiming they had been informed that the only way to receive an entry for 2010 was to nominate the use of a Cosworth
Cosworth
Cosworth is a high performance engineering company founded in London in 1958, specialising in engines and electronics for automobile racing , mainstream automotive and defence industries...

 spec-engine when the team felt it stood a "real chance" of securing a deal with a current engine supplier. The case was heard on October 13, with the decision released on November 10, the French courts rejecting N.Technology's claims.

2009 Concorde Agreement and BMW's withdrawal

On the weekend of the 2009 Hungarian Grand Prix
2009 Hungarian Grand Prix
The 2009 Hungarian Grand Prix was a Formula One motor race held on July 26, 2009 at the Hungaroring in Mogyoród, north of Budapest, Hungary. It was the tenth race of the 2009 Formula One season. The race, contested over 70 laps, was won by world champion Lewis Hamilton for McLaren-Mercedes,...

, the thirteen teams met with commercial rights holder CVC
CVC
- Science and Industry :*Compact Video Cassette - a quarter-inch video cassette format*Card Verification Code - a security feature on credit cards*Card Verifiable Certificate - a format for digital certificates usable by smart cards...

 to discuss a new Concorde Agreement
Concorde Agreement
The Concorde Agreement is a contract between the Fédération Internationale de l'Automobile , the Formula One teams and the Formula One Administration which dictates the terms by which the teams compete in races and take their share of the television revenues and prize money...

 which would guarantee the sport's future until 2012. The FIA announced that it was willing to sign the agreement provided that all thirteen teams could agree to cost-cutting measures, but two teams – Williams and Manor – had raised late objections to the proposal. Proposed cost-cutting regulations include homologation
Homologation
Homologation is a technical term, derived from the Greek homologeo for "to agree", which is generally used in English to signify the granting of approval by an official authority...

 of front and rear wings, a limit on the number of upgrades a team can introduce over the course of a season, a continuation of the in-season testing ban introduced in 2009, restrictions on the number of personnel able to attend a race, and the teams agreeing to completely close down their factories during the summer break.

On 29 July 2009 BMW Sauber
BMW Sauber
BMW has been involved in Formula One in a number of capacities since the inauguration of the World Drivers' Championship in . The company entered occasional races in the 1950s and 1960s , before building the BMW M12/13 inline-four turbocharged engine in the 1980s...

 announced they were withdrawing from Formula One at the end of the 2009 season. They cited "current developments in motor sport" as the reason for their decision
. Three days later on August 1, it was announced that the FIA had signed the Concorde Agreement, thus bringing an end to the dispute. The new Concorde Agreement is said to return to the system used in 1998, restoring voting rights to the teams and the establishment of working groups and commissions to make decisions. Included in the document is a clause allowing BMW Sauber an additional week to sign up in the event that they accept a rescue package to keep them in the sport.

Zoran Stefanovic and the European Commission

Following N.Technology's lawsuit against the FIA, a complaint was made to the European Commission
European Commission
The European Commission is the executive body of the European Union. The body is responsible for proposing legislation, implementing decisions, upholding the Union's treaties and the general day-to-day running of the Union....

 by Zoran Stefanovic, an aspiring team principal supporting N.Technology's claims that the FIA had required new teams to nominate a Cosworth engine if they wanted to join the 2010 grid. Stefanovic had intended to field a team to be known as Stefan Grand Prix and that he had explored the possibility of acquiring engines from a current manufacturer. His complaint to the European Commission claimed that the FIA demonstrated bias in the selection process and was in violation of anti-competition laws, and he requested that the selection process be carried out again.

Stefanovic had attempted to enter Formula One on two previous occasions, including an attempt to purchase the remains of Lola's disastrous 1997 attempt
Lola T97/30
The Lola T97/30 was the car with which the MasterCard Lola Formula One team attempted to compete in the 1997 Formula One season. It was driven by Vincenzo Sospiri, the 1995 Formula 3000 champion, and Ricardo Rosset, who moved from Footwork. However, the team's tenure in F1 was brief. The first...

. He claimed that the FIA had not simply shown bias against non-Cosworth teams, but also against teams that would be classified as manufacturers, citing that new teams Manor, Campos
Campos Grand Prix
HRT F1 Team, formerly known as Campos Meta 1 and Hispania Racing, is a Spanish Formula One team founded by former driver Adrián Campos. It was sold to José Ramón Carabante before its debut in 2010, and to then to investment group Thesan Capital in July 2011...

 and USF1 were forced to outsource the design of their chassis to other firms and design studios whereas Stefan Grand Prix had the support of Serbian aircraft manufacturer AMCO, and thus could build their own cars independently. This bias, he claimed, was supported by Prodrive's
Prodrive F1
Prodrive F1 Team is the name of a proposed Formula One team to be run by Prodrive. The team was selected by the FIA in 2006 to be the 12th entry into the 2008 Formula One world championship...

 failure to make the grid; like Stefan, Prodrive would have the facilities to build their own chassis. Stefanovic, however, had the support of Mike Coughlan
Mike Coughlan
Mike Coughlan is a race car designer. On 3 May 2011 it was announced that Coughlan will become the Chief Designer for Williams F1...

, the disgraced
2007 Formula One espionage controversy
The 2007 Formula One espionage controversy, also known as "Spygate," or "Stepneygate" involves allegations that the McLaren Formula One team was passed confidential technical information from the Ferrari team, and that the Renault F1 team was passed confidential technical information from the...

 McLaren
McLaren
McLaren Racing Limited, trading as Vodafone McLaren Mercedes, is a British Formula One team based in Woking, Surrey, United Kingdom. McLaren is best known as a Formula One constructor but has also competed and won in the Indianapolis 500 and Canadian-American Challenge Cup...

 engineer.

Despite Stefanovic's planned action against, he announced his intentions to field a team in time for the season-opening race in Bahrain
Bahrain Grand Prix
The Bahrain Grand Prix is a Formula One Championship race which first took place at the Bahrain International Circuit on 4 April 2004.The Bahrain Grand Prix, sponsored by Gulf Air, made history as the first Formula One Grand Prix to be held in the Middle East...

 and compete despite not having a grid position in a move similar to the stillborn Phoenix Finance
Phoenix Finance
Phoenix Finance was a British banking company which attempted to enter the 2002 and 2003 Formula One seasons. Charles Nickerson was Managing Director of the company.- Takeover from Prost :...

 team and their failed attempt to purchase a grid position in 2002
2002 Formula One season
The 2002 Formula One season was the 53rd FIA Formula One World Championship season. It commenced on March 3, 2002, and ended on October 13 after seventeen races....

. Stefanovic cited the FIA granting a precedented fourteenth grid position to Peter Sauber's Qadbak Investments
Qadbak Investments
Qadbak Investments Ltd is a British Virgin Islands registered company which has served as the vehicle for the purchase of English football club Notts County for £1, and for the failed attempt to purchase Formula One team BMW Sauber...

 team as his inspiration, claiming that in the event that any one of the 2010 teams withdrew, the FIA may grant another special entry to Stefan Grand Prix. This was at odds with the FIA's assertion that in the event that a team were to withdraw, special provisions would not be issued.

See also

  • FISA-FOCA war
    FISA-FOCA war
    The FISA–FOCA war was a political battle contested throughout the early 1980s by the two representative organizations in Formula One motor racing, the Fédération Internationale du Sport Automobile and the Formula One Constructors Association...

    , a similar disagreement between the sport's governing body and its participants in the early 1980s.
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