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COOPER: FOTA Future A Hot Topic In Brazil
In recent weeks it has become clear that there is tension at the Formula One Teams Association...
Adam Cooper  | http://www.speedtv.com  |  Posted November 22, 2011   Balen (BEL)
Christian Horner has his concerns about the future of FOTA. (Photo: LAT Photographic)
It’s hard to believe that we are nearly in December and there’s still one more Grand Prix to go before this season draws to a conclusion. The championships were both settled long ago, but there’s still plenty of scope for action in Interlagos this weekend, especially if as forecast we get some rain through the weekend. Don’t forget we had a Williams on pole this time last year!

There will also be much going on behind closed doors as the team bosses get together for a crucial meeting.

In recent weeks it has become clear that there is a little tension at the Formula One Teams Association, the organization that was in essence established to further the interests of the teams through common negotiations with Bernie Ecclestone and the FIA.

FOTA has done some good things. It’s helped to foster a much friendlier atmosphere in the paddock, and create better relationships between the top teams. When they were running Ferrari and McLaren, Jean Todt and Ron Dennis were not exactly best buddies, and now yet it’s not unusual to see Stefano Domenicali and Martin Whitmarsh chatting and joking together in the paddock.

But behind the scenes, the organization has some challenges to deal with, and two in particular.

First, there is the issue that prompted its foundation in the first place – the Concorde Agreement, and the buildup to the signing of a new one for 2013. And secondly there is the single biggest achievement of FOTA, which is the Resource Restriction Agreement, a genuine attempt by those involved to keep a lid on costs.

The problem is that as ever, the 11 FOTA teams (HRT is not a member) have their own views on what direction things should take, and recent discussions have brought those to the surface – to the extent that some have questioned whether the organization can survive for much longer

“I think that FOTA has reached a crossroads where it needs to deal with some of the key issues moving forward, or we’ll stop. It’s a simple as that,” Red Bull’s Christian Horner said recently. “The principal issues are obviously the Concorde Agreement moving forward, what direction that goes in, and fundamentally the RRA. And if we can’t find agreement on that, then what is the purpose of FOTA?”

Asked if a collapse was really possible, he added: “I think if a solution isn’t found, and a direction that the teams want to go in with that, then yes. I’d be wrong to comment on the content of the meeting, but those are the fundamental issues that need to be addressed.”

The team bosses were supposed to meet in Abu Dhabi, but that meeting was postponed to Brazil, which represents a chance for them to come to a common position. So what is at the root of the current tensions in the FOTA camp?

“The principal thing that we are working on for the longer term of F1 is the Concorde Agreement,” says Nick Fry of Mercedes GP. “That needs to be agreed in the next year or so. The teams were very successful last time in sticking together and negotiating quite successfully with the promoter. Obviously, we are hoping to do the same again.

“We’re really at a very preliminary stage where we’re just talking about what we do want out of the new Concorde Agreement, and at the moment we’re gathering that information. So it’s still at a very early stage.”

So is it simple a question that the teams have different ideas of what slice of the pie they are entitled to?

“I think it goes without saying that all teams would like a bit more money; that’s always going to be so," Fry said. "I’m sure FOM would say they’d like more money, too, and the FIA the same. So that’s a very simple and obvious point.

“The thing that I would like sorted out better than it is at the moment are some of the more complicated issues about ownership of electronic media, for example. It was something that last time we deliberately put on one side because we didn’t have time to sort it out, and there are some grey areas where it’s not very clear who owns what and who benefits from what. I think that’s one we can pick up from last time and do a more comprehensive job.”

The RRA is a bit more contentious. The main problem is that the teams struggle to trust each other when it comes to sticking to the agreed rules in terms of how much can be spent. There’s also the delicate balancing act between wind tunnel time and the use of CFD supercomputers, and exactly how that is measured.

“Clearly one of the items that is difficult between the teams is the RRA,” says Fry. “It’s almost inevitable that when teams start to discuss anything that affects their competitive position, it’s bound to be more difficult than when we can act together and we all benefit equally.

Interlagos will host the season-ending F1 Brazilian GP again in 2013. (Photo: Getty Images)
“With the RRA, it really only affects four teams significantly, because they are the only ones big enough to reach the limit. If those four teams that do have enormous backing end up with a free situation, it’s only going to be to the detriment of the whole sport. We will end up even more than we have already with the same position as the English Premier League, where there are four or five wealthy teams at the top. That’s not good for anyone.”

Fry admits that leaving it to the teams to police themselves is difficult: “It’s simply that we’re all intensely competitive, and if you look at any academic study, people are always suspicious in competitive situations of what everybody else is doing. The amount of prestige, the amount of money that’s in F1 means that everyone’s trying their hardest, and it’s of course going to be slightly nervous about what other people are doing. In addition, some of the teams have different ideas on items such as staffing levels.

“We want to make sure that it’s a level playing field. It’s always going to be the same. I don’t think that we should be naive enough to believe that we can find the perfect solution. People will always be suspicious of others, because if someone’s winning and you’re not, many people’s first idea is that the other person must be doing something that’s now allowed or I can’t do, it’s not far. It’s usually the situation that somebody’s done a better job than the other one.”

Inevitably, other teams have been eyeing Red Bull, given its recent success. Company financial accounts show in black and white that the team has spent more than anyone else - £175m as opposed to the £120-130m by the likes of McLaren and Mercedes – and the issue is made more complicated because Red Bull Technology is separate from the actual team, Red Bull Racing.

However, Fry plays that down: “I don’t think there’s anything particularly suspicious about RBT; it’s just that Red Bull have done incredibly well over the last couple of years, and people would like a system whereby someone can independently verify that we’re all doing things the same way. I don’t think there’s anything particularly Machiavellian or suspicious about it. It’s just, let’s be transparent.”

Intriguingly, RBR recently announced increased cooperation with Infiniti/Nissan in the future, including access to R&D facilities in Japan. Horner says that doesn’t come under the auspices of the RRA.

“It just puts us on a par with the likes of Mercedes-Benz, or Fiat and Ferrari,” Christian insists. “It still has to be done at an affordable cost. Obviously, RRA is something that’s under discussion, under debate for the future, and it’s something that needs to be addressed to take away some of the paranoia that currently does exist.”

Despite the apparent problems in the group, Fry says it will all come right in the end: “I have to say in the last four years FOTA has stuck together really well, and we’ve benefited from that. And I think we will meet again no doubt in Brazil to discuss these items. The thing that is most important is that we find a solution that’s good for F1.”

Fry says Horner is wrong to say that without the RRA, there’s not much point in having FOTA.
“I think the key to FOTA is – as it was last time round – a solid negotiating position for discussions with the promoter about our financial situation. And that was the making of FOTA. I personally think that we need to refocus FOTA on that. Areas which do govern sporting differentiation should be with the FIA.

“We should look at the successes and not look at the difficulties. Over the last four years intensely competitive teams have agreed with each other on pretty much everything, and that’s a huge achievement. With regards to the RRA, the overall cost of F1 has undoubtedly come down. The numbers show that. That’s great because in this economic environment we should be spending a sensible amount of money and not a crazy amount of money.”

Will the teams be able to solve all their issues? It’s unlikely to all be sorted in the Brazil meeting – but clearly that is an important step toward the future of the organization.

Adam Cooper notched up his 26th season as a racing journalist in 2010. He has written about F1 for SPEED.com since 2005. Follow him on Twitter.

The opinions reflected herein are solely those of the above commentator and are not necessarily those of SPEED.com, FOX, NewsCorp, or SPEED
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