F1 reaches agreement to quell breakaway

Fears of a rival series to Formula One being set-up looked to be over today after a breakthrough in talks aimed at resolving the future of the sport.

The GPWC, made up of five major car manufacturers with links to teams, agreed to prepare a Memorandum of Understanding with Bernie Ecclestone’s F1 holding company (SLEC) at a meeting in Geneva.

A joint statement read: “We are very happy that today we reached a breakthrough in our negotiations about the future of Formula One.

“The outcome is in the best interests of Formula One and the millions of its fans around the world.”

The GPWC – made-up of BMW, DaimlerChrysler, Ferrari, Ford and Renault – had threatened to break away unless they had a greater say in the future of the sport and received an increased share of the millions of pounds it generates.

The rival series would have been set-up from 2008 after the present Concorde Agreement, the secret contract which governs the sport, runs out at the end of 2007.

Ecclestone attended the meeting along with representatives of the major banks which have the majority shareholding in SLEC.

All the parties agreed to prepare a Memorandum of Understanding regarding the future structure of the sport before the end of this month.

The news is a major boost for F1 which has had the threat of a rival series hanging over its head in recent years although the prospect of a second championship getting underway has always seemed remote.