F1 »

Ecclestone tells teams: No Concorde deal, no prize money

On the eve of the announcement of Formula 1's revolutionary new budget cap, Bernie Ecclestone is continuing to play hard ball with the top flight's teams in insisting that whilst there is no extension to the Concorde Agreement, they can equally expect to receive no prize money.

The Concorde Agreement is the tri-partite binding document by which the teams and Ecclestone's Formula One Management (FOM) commercial rights-holding organisation agree over the way F1's television rights are distributed – only since the expiration of the previous contract back in 2007, no new agreement has been forthcoming.

Under the most recent deal, the teams were entitled to 47 per cent of the TV revenue, but the stalemate has arisen as they have been demanding a greater share of the financial pie, whilst refusing to commit to F1 for the long-term – leaving Ecclestone fearful that other manufacturers will follow Honda out of the exit door as a product of the global credit crunch.

The sport's ringmaster has now threatened that – should the teams persist in refusing to sign a new Concorde Agreement – they will be lucky even to get half of the current figure, which is equivalent to roughly a quarter of the sport's annual profits.

Ecclestone has also joked that the long-running dispute is 'like Israel and the Palestinians, always about to reach an agreement but never quite signing it'.

“They (the teams) shouldn't get the prize money,” the 78-year-old blasted in an interview with the Financial Times. “They want to be paid in the same manner as if they had agreed to be committed for five years, but they don't want to be committed.

“We are now running more of a cash-on-delivery service. You sign the contract and we will pay you in full. We should revert back to the deal we originally had, and they can go where they like. We should be paying a lot less to the teams and charging the circuits a lot less.”

Indeed, Ecclestone explained that the money saved could be put to better use in bringing down the cost for venues of hosting grands prix, with many European and western countries currently struggling to retain their spots on the calendar with a raft of nations in the Middle and Far East willing to pay over and above the odds for the honour and prestige of welcoming the world's most glamorous sport – one that is regularly watched on TV by some 600 million viewers worldwide.

China, Singapore and Bahrain have joined the calendar in recent years, with Abu Dhabi, India and South Korea all either on the schedule or in the pipeline for the near future. By contrast, the French Grand Prix, US Grand Prix and Canadian Grand Prix have all disappeared and the German Grand Prix looks tenuous at best. The average annual fee to host a grand prix is reckoned to be $23.7 million.

Related Pictures

Click on relevant pic to enlarge
Bernie Ecclestone (GBR), Spanish F1 Grand Prix, Catalunya, 11-13th, May 2007
23.03.2017 - Detail  Sauber C36
23.03.2017 - Detail  Sauber C36
23.03.2017 - Detail  Sauber C36
23.03.2017 - Carlos Sainz Jr (ESP) Scuderia Toro Rosso STR12 and Daniil Kvyat (RUS) Scuderia Toro Rosso STR12
23.03.2017 - detail  Scuderia Ferrari SF70H
23.03.2017 - detail  Scuderia Ferrari SF70H
23.03.2017 - detail  Scuderia Ferrari SF70H
23.03.2017 - detail  Scuderia Ferrari SF70H
23.03.2017 - Steering wheel  Williams F1 Team FW38
23.03.2017 - detail Williams F1 Team FW38
23.03.2017 - detail Williams F1 Team FW38
23.03.2017 - detail Williams F1 Team FW38
23.03.2017 - detail Sahara Force India F1 VJM010
23.03.2017 - detail Red Bull Racing RB13
23.03.2017 - detail Red Bull Racing RB13
23.03.2017 - detail Mercedes AMG F1 W08
23.03.2017 - Valtteri Bottas (FIN) Mercedes AMG F1 W08

Join the conversation - Add your comment

Please login or register before adding your comments.

Although the administrators and moderators of this website will attempt to keep all objectionable comments off these pages, it is impossible for us to review all messages. All messages express the views of the poster, and neither Crash Media Group nor Crash.Net will be held responsible for the content of any message. We do not vouch for or warrant the accuracy, completeness or usefulness of any message, and are not responsible for the contents of any message. If you find a message objectionable, please contact us and inform us of the problem or use the [report] function next to the offending post. Any message that does not conform with the policy of this service can be edited or removed with immediate effect.

Phill T - Unregistered

April 30, 2009 11:34 AM

He really is an obnoxious little toad isnt he Again this raises a perfect opportunity for the teams to say ok sod you and go it alone The teams together could do a better job than the incompetent FIA & Bernie & his money grabbing cronies Bring on a new series with not ties to the FIA or Ecclestone!

the Lawman... - Unregistered

April 30, 2009 1:05 PM

I over heard Bernie's wife say to her lawyer, "we already have Bernies tomb stone made up for him and it reads: "Greed is blind, because it doesn't know when to stop," we thought of something nice for all of us to hold in our memories.

© 1999 - 2017 Crash Media Group

The total or partial reproduction of text, photographs or illustrations is not permitted in any form.