New Exposure for WRC
18 July 2000 | 10:42 AM
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The following is a -long- clipping from FT.COM
Rival to Formula One planned
By John Griffiths
Published: July 17 2000 20:30GMT | Last Updated: July 17 2000 21:22GMT
A new World Rally Championship designed to rival Formula One is being launched with the support of leading motor manufacturers.
David Richards, the entrepreneur who has bought the media rights to world championship rallying from Bernie Ecclestone, the Formula One promoter, plans a global television schedule that would alternate rallies with grand prix.
The move is backed by Ford, Toyota, Peugeot, Subaru and other leading car manufacturers which use rallying as a key part of their marketing.
Mr Richards, chairman of Prodrive, a motor sport engineering group, is to set up a company in London next month to promote the championship.
Mr Richards paid an undisclosed sum to Mr Ecclestone for International Sportsworld Communicators, which holds the media rights to world championship rallying.
The sale was forced on Mr Ecclestone as part of an imminent deal with Mario Monti,the EU Competition Commissioner. This will end a four-year dispute between the European Commission and the Federation Internationale de l'Automobile (FIA), the world governing body of motor sport, over broadcasting rights arrangements between the FIA and Mr Ecclestone.
Commission officials complained that the long exclusive rights granted by the FIA to Mr Ecclestone for both F1 and WRC events breached EU competition rules.
Now Mr Ecclestone no longer controls the commercial rights to rallying, Mr Monti is understood to have accepted in principle a deal between the FIA and Mr Ecclestone on F1's broadcasting and other commercial rights.
The FIA would effectively sell the rights in perpetuity to Mr Ecclestone for a one-off payment - expected to be in excess of $300m (£200m) - and would confine itself to its regulatory role. It is responsible for drafting motor sport rules, licensing, safety and related issues.
The FIA and competition department officials are understood to be drawing up the final terms of the arrangements, which will lead to the Commission formally dropping its complaints.
The dispute has been an important factor in frustrating plans by Mr Ecclestone to mount a $2.5bn-plus flotation of his Formula One promotion companies. Instead, he has sold a 50 per cent stake in the enterprises to EMTV, the German media group.
Mr Richards, who sold a 49 per cent stake in Banbury-based Prodrive six months ago to venture capital group, Apax, said an overhaul of the structure of WRC events has already begun, aimed at making it more easily packaged for television.
He said discussions were under way with a number of leading TV networks, although he declined to identify them.
Rival to Formula One planned
By John Griffiths
Published: July 17 2000 20:30GMT | Last Updated: July 17 2000 21:22GMT
A new World Rally Championship designed to rival Formula One is being launched with the support of leading motor manufacturers.
David Richards, the entrepreneur who has bought the media rights to world championship rallying from Bernie Ecclestone, the Formula One promoter, plans a global television schedule that would alternate rallies with grand prix.
The move is backed by Ford, Toyota, Peugeot, Subaru and other leading car manufacturers which use rallying as a key part of their marketing.
Mr Richards, chairman of Prodrive, a motor sport engineering group, is to set up a company in London next month to promote the championship.
Mr Richards paid an undisclosed sum to Mr Ecclestone for International Sportsworld Communicators, which holds the media rights to world championship rallying.
The sale was forced on Mr Ecclestone as part of an imminent deal with Mario Monti,the EU Competition Commissioner. This will end a four-year dispute between the European Commission and the Federation Internationale de l'Automobile (FIA), the world governing body of motor sport, over broadcasting rights arrangements between the FIA and Mr Ecclestone.
Commission officials complained that the long exclusive rights granted by the FIA to Mr Ecclestone for both F1 and WRC events breached EU competition rules.
Now Mr Ecclestone no longer controls the commercial rights to rallying, Mr Monti is understood to have accepted in principle a deal between the FIA and Mr Ecclestone on F1's broadcasting and other commercial rights.
The FIA would effectively sell the rights in perpetuity to Mr Ecclestone for a one-off payment - expected to be in excess of $300m (£200m) - and would confine itself to its regulatory role. It is responsible for drafting motor sport rules, licensing, safety and related issues.
The FIA and competition department officials are understood to be drawing up the final terms of the arrangements, which will lead to the Commission formally dropping its complaints.
The dispute has been an important factor in frustrating plans by Mr Ecclestone to mount a $2.5bn-plus flotation of his Formula One promotion companies. Instead, he has sold a 50 per cent stake in the enterprises to EMTV, the German media group.
Mr Richards, who sold a 49 per cent stake in Banbury-based Prodrive six months ago to venture capital group, Apax, said an overhaul of the structure of WRC events has already begun, aimed at making it more easily packaged for television.
He said discussions were under way with a number of leading TV networks, although he declined to identify them.
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