Circuits unite to wield political influence

The initiative taken last year by Ron Walker, the head of the Australian Grand Prix, has thus materialized into a formal association. At the time, he spoke on behalf of 17 circuits to announce that they refused the possibility of having four-cylinder engines, arguing that it would significantly harm the sound of these engines and thus the enjoyment of spectators gathered in stands around the world. They had clearly made it known that they would be prepared to leave the discipline in favor of IndyCar.

At the time, he had announced that 17 promoters had given him their power to oppose the new regulations during the World Council vote: This is the first showdown the promoters have had with the commission, and she fully understands where we stand. The World Council’s proposal has, for the first time, galvanized all the promoters, including Monaco. They gave me their voting rights so that I could vote against the engine. 17 circuits gave me their voting rights. The only ones who did not authorize me to vote on their behalf are Korea and China.

According to information from The Independent, the various promoters have now decided to formalize this alliance by creating the FOPA, which is based in Geneva (like the FOTA) and is led by Ron Walker. This initiative is widely supported by Silverstone, whose president, Neil England, stated: “Historically, we have lacked coordination, and the Formula One Promoters Association gives us the opportunity to have it. There are many issues of common interest, and I think it’s important that we express them.”

As often, the timing of this decision is no coincidence. Indeed, F1’s commercial agreements are currently under negotiation. However, the promoters are the primary source of F1’s revenue while they currently receive no financial compensation from the profits generated by F1. If they are united, a third of the $1.5 billion turnover is quite significant for Bernie Ecclestone. Especially since Ron Walker is a very skilled businessman and a close friend of Bernie Ecclestone, making him an ideal interlocutor for the latter.

The circuits currently in F1 also have a significant advantage: they have few potential replacements. Indeed, according to a FIA document reported by Pitpass, few other circuits have the FIA’s top-level certification. Currently, only the circuits of Dubai, Fuji, Imola, Magny-Cours, Mugello, Paul Ricard, and the Red Bull Ring hold this valuable credential, which doesn’t necessarily pose a great threat to existing circuits. These circuits can, therefore, leverage their collective influence much more significantly than the teams, which can easily be replaced by the up-and-coming GP2 teams.

The circuits were inspired by the teams that came together to speak with a united voice. Since then, they have once again fractured, with the departure of two heavyweights, Ferrari and Red Bull, which significantly reduces their sphere of influence. However, it seems that they have still managed to secure a larger share than the 47.5% provided for by the current Concorde Agreements.

It will therefore be necessary to see if the FOPA (not to be confused with the Formula One Photographers Association) will last longer than the initiative established by the teams…

With the participation of RacingBusiness.fr