Agreement reached on Formula One's future 19 Dec 2003
As promised earlier this month, a Memorandum of Understanding on the future structure of Formula One racing has been agreed. It follows further discussions between GPWC, the company formed by five of the main car makers involved in the sport, and SLEC, the parent company of the Formula One Group of companies, including Formula One Administration (FOA).
Under the new understanding, the Formula One teams are expected to get a significant increase in the revenue they receive under the current Concorde Agreement. An extension of that Concorde Agreement, which expires in 2007, will also be part of the overall solution.
"Obviously my main interest has always been to secure the long-term future of Formula One," said Bernie Ecclestone, who will continue in his role as CEO of FOA. "With an amended and extended Concorde Agreement about to be signed, and a general consensus on the key issues, I am very optimistic."
Though the shareholdings in SLEC are not expected to change significantly, the GPWC will now be represented by three Directors on the company's board. "This Memorandum of Understanding incorporates GPWC's core objectives and is in the very best interests of the teams and the fans," commented Professor Juergen Hubbert, Chairman of GPWC.
Dr. Gerhard Gribkowsky, representing the SLEC shareholders, added: "With this Memorandum of Understanding we have created a stable and long-term platform for all constituents of the Formula One Sport, most importantly the Teams. At the same time, we have secured the commercial basis for the financial stability of Formula One."
Definitive agreements are now being prepared and are expected to be signed mid-2004 with effect from the 2004 season. A joint press conference will be scheduled for mid January 2004, when further details will be announced.