Dispute OVer F-1 Racing Settled

Dispute over Formula 1 Racing's European TV Rights Settled

EU's antitrust complaint dropped after F-1 pays one-time fee

London, January 30, 2001 -- A five-year-long battle has ended, as a disagreement between the European Union (EU) and the Formula International Association (FIA) over the broadcasting and commercial rights for Formula 1 (F1) racing was settled.

According to the Financial Times, the settlement means the EU agrees to drop its complaint that the commercial arrangements between the FIA and F-1 (an arm of the Formula One Association) were anti-competitive. The major provisions of the agreement are that the FIA agrees to withdraw from any commercial involvement in F1 and other motor sports, confining itself to simply the role of regulator. The Formula One Administration will make a one-time payment of $360 million dollars to the FIA for F1's broadcasting rights "in perpetuity."

The settlement will also limit the duration of its own broadcasting contracts to a maximum of five years and remove contract provisions regarded as having penalized broadcasters wanting to show other forms of "single-seater racing." The European Commission signaled the end to its lengthy anti-trust investigation after F-1's CEO agreed to "loosen his grip on the sport." With the deal, FIA "has satisfied" EU concerns that it no longer has a commercial interest in Formula One's success.

J. Martinez