http://pitpass.com/fes_php/pitpass_news_item.php?fes_art_id=38220 When Max said "go ahead start you own series" he really meant - "NO"
I'm sure FOTA has contemplated this possible threat and are ready to deal with it. FIA grasping at straws? Bring it on!
I am pretty sure FOTA lawyers were working on it for weeks. Yesterday was just a check - "are we ready ?"
FIA to launch legal action against FOTA By Pablo Elizalde Friday, June 19th 2009, 14:44 GMT Max MosleyMotorsport's ruling body, the FIA, has announced it will be launching legal action against the Formula 1 teams trying to set up a breakaway championship. The Formula One Teams' Association (FOTA) announced on Thursday night that, after failing to reach an agreement with the FIA, will start its own series next year. But the governing body has responded to FOTA with a legal threat, saying the teams, and Ferrari in particular, have binding commitments that they cannot break. The FIA also said that it will delay the publication of the 2010 entry list, expected tomorrow. "The FIA's lawyers have now examined the FOTA threat to begin a breakaway series," said the FIA in a statement. "The actions of FOTA as a whole, and Ferrari in particular, amount to serious violations of law including wilful interference with contractual relations, direct breaches of Ferrari's legal obligations and a grave violation of competition law. "The FIA will be issuing legal proceedings without delay. "Preparations for the 2010 FIA Formula One World Championship continue but publication of the final 2010 entry list will be put on hold while the FIA asserts its legal rights."
No joke. AND with FOTA's members being some of the largest automotive companies in the world, you better believe the lawyers have been on this for a while, probably even longer than we realize. A good risk manager would have contemplated the bearings of this action on their contractual obligations years ago.
But the action was taken by FOTA, implying that they have done due diligence regarding the anticipated outcome of any litigation. At the worst, they would have weighed the cost vs. benefit of their action. Of course, Mad Max might believe he is calling a bluff. Is FOM in on this litigation, too? If not, that would be an interesting angle.
Actually, considering how the FIA has been handling this whole ordeal...if they weren't prepared it wouldn't surprise me.
One would think they have an estimated cost that litigation/settlement would be and that was part of the deciding factor to go ahead with the breakaway.
"Preparations for the 2010 FIA Formula One World Championship continue but publication of the final 2010 entry list will be put on hold while the FIA asserts its legal rights." Double speak from the FIA/Max. Earlier they were going to publish the entry list on Saturday. Now, it's on hold. How convient is that.
Kind of lame to publish the entry list of 5 teams with 3 teams that never raced in F1 and call it the pinnacle of motorsport
Nothing new there! They don't have any (OK, two) teams to really include - How much of a joke would it be with those two plus a bunch of non-existent no-names. Even assuming they had some sponsors, I'll bet the money men are saying "we're not interested unless we're racing Ferrari and the real teams". I actually believe that despite MM's hubris the FOTA announcement caught 'em by surprise - "They'll never really pull out"..... Ha! This is not the GPMA/FISA wars of years gone by..... This is some of the biggest corporations with limitless budgets that are pissed off. Very different scenario. Cheers, Ian
FIA is giving Ferrari an out. Please please dont let it be Ferrari with their separate deals which scuttles FOTA. That would be it for me with Ferrari. I thought FIA gave the teams till tonight to make an entry. Either they are already commited and thus no entry needed (contract) or they are not
+1. He's so screwed!...... I wonder what exactly an "unconditional" entry means? There have to be clauses that protect the entrant as well as the FIA in the event of "force majeure" (sp?) - Maybe he can get out of it...... As I said somewhere else, Dr M seems to be hedging his bets already. And the only one that really matters to me is Sir Frank, and he's ominously quiet...... Cheers, Ian
There should be clauses to protect entrants, but the other side is Max & Bernie and they are known not to like these clauses.
The action was first taken by the FIA when they placed Ferrari and both Red Bulls on the list. I would think that meant that the FIA's attorney's believe that the Ferrari agreement is in full force and has not been breached by the FIA. Or it could have been a bluff call by Max, just like FOTA saying they were starting another series. There are people within the FIA, that quietly pass on information to people within FOTA, and there are people within FOTA thatquietly pass on information to the FIA. By the time we in the peanut gallery hear any news, it is no longer a surprise to them. To think that only FOTA is prepared is a mistake. FOM and the FIA, either separately or together are just as prepared, and I would even suggest that FOM is the most prepared of anyoone in this soap opera. Besides, attorneys get fees when there is more litigation, so don't think that because anyone of these groups makes some major announcement its because they have any DD to support themselves. This is negotiation. At first this was business negotiation, now its ego negotiation. Absolutely ridiculous attitude by FIA and FOTA.
Months ago the folks in Montreal said that a new series was in formation. Who do you think it was/is? While Bernie was telling us that Max had Ferrari right where he wanted them, the reverse was probably true. One blunder at a time Max has been setting the table for FOTA's lawyers. That being said, there is no guarantee that FOTA will win in court. A lot of this will be open to interpretation when it gets in court and politics will play as much of a role as law will. If you want an example, check out the move of the Seattle Supersonics to Oklahoma City. Howard Schulz of Starbucks sued the new owner for breach of contract for moving the team without making a good faith effort to keep them in Seattle. He had pretty close to an ironclad case but the judge basically said, "grow up Howard, this is a contract between major league sports team owners. It means nothing. You're all a bunch of liars. That's business." The next day Schulz withdrew his suit. So what does this mean for the current situation? I'm betting that European governments will get involved. Which ever side they're on will likely win, unless they are split. The next question I have is 'what is Max's role from here on out?' Just my take on it.
I re-read this article: http://www.pitpass.com/fes_php/pitpass_news_item.php?fes_art_id=37912 If it's true that FIA doesn't really have the power to write the rules what case do they have? If FOTA and FOM can come to an agreement surely the FIA's left hang out to dry?
"Send lawyers, guns and money. The **** has hit the fan." Either we are approaching the endgame or the kind of mess that only the courts can create.
Speed TV should have canned his a@@ after what he said on TV and even admitting to the world he said congratulations in a cynical way to Howett and he was SHOCKED that Howett took it in a congratulatory celebratory manner.....duh! Varsha was not much better either. Sounds like sour grapes to me......hope he has fun in GP3 with the other 4 teams.... Carol
Speed has always treaded very gently whenever talking about the FIA and related matters. BTW while I think there is a serious conflict of interest regarding Windsor's reporting I do feel sorry for him. He finally has his own team and the whole sport turns to ****.
