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It all started with an errant fax to the PaddockTalk headquarters about 30 days ago.
The address on the letterhead read:
Formula One Management Ltd
6, Princes Gate
London SW7, United Kingdom
As we read the copy, it became quite clear that a major shift in the future of Formula One was about to take place…. and very few people knew about it, or understood the enormity of the change.
As we dug, and dug… We were able to establish a whole host of other items that made many of the recent strange rulings by Max Mosely and the FIA very clear. Customer cars, the spec ECU, eliminating traction control, and freezing engines. These were just the tip of the story.
An exciting announcement will be made Thursday at the Malaysian Grand Prix. Bernie Ecclestone, and Max Mosley will be the sole individuals present for the FIA’s Thursday pre-race press conference.
At it - PaddockTalk can exclusively reveal - Formula One will announce that the Formula One series will be split into two divisions beginning in 2008 – One made up of the big money automotive manufacturers (w/ one top privateer), the other made up exclusively of privateers.
The manufacturer division will be made up of Ferrari, BMW, Honda, Mercedes, Renault, Toyota and privateer Williams (apparently because of its history, though it is likely to be a rotating position based on performance in the privateer division.)
The newly established privateer division will be Red Bull, Spyker Super Aguri, Toro Rosso, and the new Pro Driver team and two new applicants.
Each team in each series will run three cars.
Fewer cost controls, and restrictions will be put on the big teams in the manufacturer division. Their $250-500 million annual budgets will likely only get bigger. Meanwhile, the privateer division will keep many of today’s restrictions and work to keep annual operating budgets under $100 million.
Though at this time, it is unclear if there will be a new bidding process for the new teams, or if the front-runners of the 2006 FIA’s team application process will be reviewed again with two chosen from that group of 22. Either way, previously rejected candidates Jordan, Direxiv, Carlin Motorsport will be the obvious leading applicants for admission into the new division.
So why has this come about ?
Several reasons.
First and foremost, the recent multi-year battle for control of the future of the sport between Ecclestone’s Formula One and the GPMA revealed that there is plenty of money begging to get into F1. Be it teams, venues, or drivers, and manufacturers.
And there are plenty of teams, venues, and driving talent for a second world championship caliber series. The GPMA actually had a good idea (thought they used it as a threat), but splitting out of spite would have hurt the sport, while splitting out of agreement can only help it.
Everyone wants to be part of the Formula One show and its success.
But clearly – as has always been the case in racing – money means wins, and not every organization has enough cash to make the grid let alone be competitive once they reach the pinnacle of racing.
Wouldn’t it be great to know that Spyker, or Toro Rosso could win a race when racing against peers on a more level playing field ?
Just as clearly, NASCAR in the United States runs 36 races a year while Formula One runs just 17 or 18 – despite the fact that another 10-15 venues have talked about, or been rumored with an interest in hosting a Grand Prix each season.
But F1’s global hopping is a far different circus to setup and take down, than moving around from state-to-state. The extensive world travel has limited Formula One’s ability to add more Grand Prix weekends.
But the obvious indication is there. If there were more Formula One races, people would watch them in the grandstands, and on TV. Each race weekend over 300 million viewers watch Formula One – though recent figures suggest that number may be smaller – the number is still huge no matter the measure.
By adding a second division and racing on weekends that F1 is dormant, Formula One can continue to expand and meet the huge demand for the sport. Even if half the Formula One fans tuned in to watch the new extremely credible division, it would be a huge boon!
In 2008 & 2009 Formula One will add Singapore, Korea, and Abu Dhabi to the schedule. The thinking has been that more European venues will have to be sacrificed in order to maximize the return for Ecclestone.
But tradition is important. Not just to drivers, teams, and the manufacturers themselves, but also Ecclestone. He doesn’t want to be seen as the kill joy, greedy schmuck that took Formula One out of Europe.
And that’s apparently where the new privateer division will help ease the transition. The new division will race at traditional and new venues and initially will be less costly to host: venues expected to host races in the inaugural season include Imola, Hockenheim, Spa, Magny Cours, and Suzuka.
It will also add some new venues to the schedule which couldn’t afford to bid on a manufacturer division race. That’s why we’ve been seeing rumors of Formula One in South Africa, Paris, Qatar, and Valencia. They are all vying for a place on what is initially expected to be a 10-race schedule.
In the United States, our understanding is that given the great support Laguna Seca has seen for the MotoGP series - with 50,000 fans on race day - it will soon be very close to signing to host a privateer Grand Prix. It apparently wasn’t just a coincidence that a 2005 Toyota Formula One car was demonstrated at the venue last year. And though rumors of another USGP at Las Vegas fizzled out last year, our understanding is that Ecclestone’s Formula One Administration continues to evaluate a street race in the city.
There is apparently more coming in the pipe. And much less concrete items than we can report at this time.















