To all FIA Club Presidents
16 May 2008

Dear President,

Having asked the Senate to call an Extraordinary General Assembly on 3 June, I feel I owe you a letter of explanation.

Firstly, I should like to say that I am very sorry that publication of details of my private life, which I had always intended should remain entirely private, has caused so much trouble and embarrassment. Despite a press campaign against me, I gave only one interview myself. This was to the UK Sunday Telegraph four weeks ago. We could send you a copy with translations if you wish.


The question of resignation

Following recent press publicity, I received spontaneous and entirely unsolicited letters from FIA member clubs representing a total of 85 of our votes. Of these, representatives of 13 votes suggested I should consider resigning. However, representatives of the remaining 62 all urged me to stay. A number of informal communications from clubs which had not written indicated a still greater majority in support. Given this majority, it would cleary have been wrong to ignore the views expressed and step down with no further discussion. At the very least, I felt bound to ask the membership of the FIA as a whole to express a view. This is why I asked the Senate to call and Extraordinary General Assembly.

Furthermore, were I to resign before my mandate ends in 2009, an election for a new president would have to be held within two to four months (FIA Statutes Art 12.1). Candidates for the job would stand on their own. Literally anyone could stand and there would be no list to stabilise the process and ensure that each candidate had the support of a real cross-section of FIA member clubs.

During the two to four month election period, the complex negotiations which are mentioned below would necessarily slow or even cease. A new president would then take over with no knowledge of the background and, worse, might perhaps have been elected with the support of the very people with whom we are negotiating.


The negotiations

In addition to the obvious need to seek the views of those who elected me, I believe that unless invited to do so by the clear majority of FIA member clubs, it would be irresponsible, even a breach of duty, to walk away from a number of negotiations currently under way, all of which are of fundamental importance to the FIA.

We are in the middle of a renegotiation of the 100 year commercial agreement between the FIA and the Formula One Commercial Rights Holder. In effect, this agreement governs Formula One. The CRH originally asked us to accept changes to the agreement in order to reduce the CRH's liability to tax. These we can probably concede. But the CRH has also now asked for control over the Formula One regulations and the right to sell the business to anyone – in effect to take over Formula One completely. I do not believe the FIA should agree to this.

To do so would be the abandon core elements of the FIA's patrimony including, for example, our ability to protect the traditional Grands Prix. We would also be weaker financially but, even more importantly, we could put at risk the viability of the FIA as the regulatory authority of international motor sport and lose a valuable communication for the wider interests of the organisation.

(We could perhaps grant the CRH greater freedom to sell the business but only if, in return, the FIA takes control of all sporting aspects of a Formula One Grand Prix including, for example, the allocation of passes to all working areas. However, there is so far no sign of agreement on this).

The CRH also wants a new Concorde Agreement. So do the Formula One teams. A new Concorde Agreement would give the Formula One teams a greater say in the rule-making process, including various rights of veto. Because of its influence over the teams (which comes mainly from its ability to offer favours in and around the paddock), the CRH sees a Concorde Agreement as another way to exercise control over the sport. Again, however, I do not believe we should concede. The sport and the commercial interests should be kept separate. The teams and the CRH should be consulted and listened to at all stages, but it must be the FIA, not the CRH or the teams, which decides the regulations. My refusal to concede on this has led to a difficult situation and compounds the problems with the CRH over the 100 year agreement.