Who holds the reins in F1? (Part 1)

The last two seasons of Formula One have been among the most contentious, every day we have heard of the problems within the sport, be it technical, financial or the very real fact that its popularity is waning.

The reasons for all these issues according to a large percentage of the media, rests with a variety of organizations, companies and individuals. We have read that the controlling body the FIA should take back control, that CVC Capital Partners are not reinvesting in the sport that has made them millions or that Ecclestone is pricing F1 out of the market.

But when did it all start to go wrong and how did so many organizations and individuals become involved and achieve such power? To attempt to find an answer to that we have to go back many years.

SHANGHAI, CHINA – APRIL 10: Ferrari Team Principal Maurizio Arrivabene looks on during practice for the Formula One Grand Prix of China at Shanghai International Circuit on April 10, 2015 in Shanghai, China. (Photo by Clive Mason/Getty Images)

The entire structure of F1 is, to say the very least, extremely complex and it would appear that the complexity has grown with the sport. Along with the growth of the structure we have witnessed the change from a sport to a very lucrative investment, sadly very few actively involved in the sport are beneficiaries of these spectacular returns.

The very nature of motor racing is competitive so it follows that no one wants to play second fiddle, but there has to be winners and losers and right now it appears that the economically limited smaller teams and the loyal fans fit into the latter category.

The smaller teams, many privately owned, were the backbone of the sport since its inception in 1950. Names such as Lotus, Brabham, McLaren, Williams and Tyrell spring to mind and they fought against the might of the Ferrari, Matra and Alfa Romeo factory teams. Even then there were issues within the sport and as usual it was the non works competitor that was getting the raw end of the deal.

During the late 1940’s and early 1950’s a young man tried his hand at motorsport with limited success and after a few significant accidents turned to team and driver management and eventually team ownership. In the mid 1960’s a young university student pursued a similar path initially racing with reasonable success and then into team ownership. These two individuals were destined to meet and ultimately play a significant role in the future of F1, they were of course, Bernard Charles Ecclestone and Max Rufus Mosley.

Ecclestone had purchased Brabham in 1972 and was acutely aware of difficulties within the sport and a lack of strong representation for the teams. Organizations such as the Grand Prix Constructors Association (GPCA), F1CA, FICA and subsequently FOCA (Formula One Constructors Association) were to allow Ecclestone and Mosley an entry into the politics and financial assets of the sport. Mosley, now a qualified barrister had become a part owner of the March team where his legal experience was a valuable asset.

Formula 1 boss Bernie Ecclestone stands in the paddock during the first practice session at the Spa-Francorchamps circuit in Spa on August 22, 2014 ahead of the Belgium Formula One Grand Prix (AFP)

In 1978 Ecclestone became the CEO of FOCA and Mosley joined him as his legal advisor. This was the combination that took on the autocratic Jean-Marie Balestre the President of the Fédération Internationale du Sport Automobile, a division of the FIA and the controlling body of international motor sport. The Frenchman was renowned as a volatile, dictatorial egotist whose reign as President had certainly been contentious and had created a very difficult situation in relationships between FISA and FOCA.

Ecclestone amazed everyone when he made a deal with FISA in which he secured the right for FOCA to negotiate all future television contracts this was a major milestone in the history of F1 governance. It was also the start of a new era for the teams. The deal would result in the teams receiving 47% of the income, the FIA 30% and 23% to Formula One Promotions and Administration. If the acronym FOPA seems a little strange the purpose of the association was not, FOPA was Ecclestone’s personal repository for that 23 percent.

Finally the teams were receiving a decent return for the entertainment they provided for millions of fans worldwide, the financial situation for all teams was greatly improved and this was due to the foresight and dynamism of Ecclestone and his ally Mosley.

In the ensuing years Ecclestone continued to improve the situation for all the teams and the sport in general, as well as bolstering his own rapidly swelling coffers. All involved appeared to accept this scenario, it meant that the teams could get on with racing and leave the financial side to Ecclestone. The fact that his position within the F1 world was also strengthening seemed to have been overlooked or not considered as significant  by the other members of FOCA, after all the money came in and that’s all that mattered. Or was it?

Ecclestone and Mosley had more ambitious plans for the future of Formula One.