Ferrari will retain its veto right for new commercial agreements
Ferrari CEO Louis Camilleri announced that the Scuderia will retain its right of veto in the new Concorde Agreements from 2021.
This veto right in favor of the Maranello team is historical. It was established during the Ecclestone era in the 1980s, during the first Concorde Agreements. Indeed, Ferrari was isolated from the other teams, which were all British. At that time, it was the only team to manufacture its own chassis and engines. Enzo Ferrari was thus up against private teams such as Williams, Lotus, and McLaren, all of which used the same Ford Cosworth engine. He therefore had this clause included in the Concorde Agreements, and it was accepted by the chief financial officer of Formula 1.
However, the Italian manufacturer can only exercise it if it can prove that its commercial interests are threatened. This advantage that Ferrari has is criticized by some teams and Formula 1 officials, like Jean Todt, who now finds it unfair as he is the president of the FIA, but had no objections when he worked in Maranello.
The last time the Maranello team decided to use this veto right was in 2015 when the FIA wanted to cap the price of engines and gearboxes. Retaining this advantage in the commercial agreements was a sine qua non condition for Ferrari to remain in Formula 1 after 2020.
The president of Ferrari, who spent many years at Philip Morris, explains in an interview with the Financial Times that this veto right is essential not only for Ferrari but also for Formula 1.
« Will we ever use it? I doubt it. Does having it draw people’s attention? I think so. It’s something important, I think. Some of the teams think it’s anachronistic and shouldn’t be in place, but on the other hand, some think it’s a good idea to have an ‘adult’ in the room. »
While these agreements are being discussed between the teams and the governing bodies of Formula 1, Louis Camilleri indicates that everything is on track for his team to remain in Formula 1: « We are very involved. The Concorde Agreements are really a beginning, it’s not even the end of the beginning. Things will evolve in the coming months but everyone agrees on the basic principles and that’s healthy. There are still many things to do. »
