Plans progress for breakaway F1 series

Formula One’s major car makers will press ahead with plans to launch a rival series “no later than 2008”, they revealed today.

The Grand Prix World Championship group, made up of BMW, Ferrari, Renault and Mercedes, have long threatened to launch a breakaway series and today insisted their plans will go ahead.

The four, who represent four of Formula One’s top five teams, are engaged in a dispute with the sport’s commercial rights holder Bernie Ecclestone over how much money he pays entrants.

At present only around 40% of Formula One’s huge income from commercial deals, including rights to hold races and broadcast them, goes to the teams.

Even Ferrari, who have dominated the sport in recent years, claim they cannot sustain their current expenditure without more cash from Ecclestone.

The planned new series, which could begin after the Concorde Agreement – the contract which governs Formula One – expires in 2007, has been planned to end Ecclestone’s stranglehold on the sport’s finances.

In Brazil last weekend, nine of the 10 teams agreed to massive testing cuts in an attempt to save money, with Ferrari the only dissenters.

Professor Jurgen Hubbert, chairman of the GPWC group, claims that illustrates the need for today’s show of unity among the major car manufacturers.

He said: “We have been more than patient with the current management and governance of Formula One, but recent developments have underlined the need for a structure that guarantees a stable and prosperous future of the sport.”

The GPWC have appointed International Sports and Entertainment to lay the groundwork for the championship.

Hubbert added: “GPWC is very satisfied to have secured the services of iSe. Its strong shareholder base and wide-ranging management experience with global sports events such as the FIFA World Cup and the Olympic Games makes iSe our clear partner of choice.”