FOTA’S ROADMAP FOR THE FUTURE OF FORMULA ONE

FOTA’S ROADMAP FOR THE FUTURE OF FORMULA ONE Formula One Teams
Association (FOTA) reveals initial plans and framework for the future
of Formula One at landmark press conference GENEVA, 5 MARCH 2009: The
Formula One Teams Association (FOTA) today outlined its roadmap for
Formula One at a press conference at which senior management figures
from all 10 current Formula One teams shared the stage together.
Setting out its proposed agenda for the evolution of the sport, FOTA
unveiled a dynamic package of unanimously agreed proposals which,
pending the approval of the FIA, will take effect in 2009 and/or 2010.
These proposals are aimed at increasing the stability, sustainability,
substance and show of Formula One, and have all been developed as a
result of rigorous interrogation of a FOTA global audience survey
carried out in 17 countries earlier this year. The study canvassed
views of existing fans but also, for the first time, drew on insights
from a cross-section of general and infrequent followers of the sport,
in line with FOTA’s stated ambition to broaden as well as to deepen the
appeal of Formula One. The proposals can be classified under three
headings – technical, sporting and commercial - in line with the three
working groups inaugurated when FOTA was formed in September 2008.
These proposals will ensure the retention of Formula One’s unique and
essential sporting ‘DNA’, improve the show for all audiences, reduce
costs, and increase the value proposition to the major stakeholders.
Luca di Montezemolo, Chairman of FOTA, said: "This is an
unprecedented moment in Formula One history. Above all else, for the
first time the teams are unified and steadfast – with a clear,
collective vision. Thanks to this unity, all the teams have already
managed to make a significant reduction to their costs for 2009. And,
while we will continue to compete vigorously on track, we all share one
common goal: to work together to improve Formula One by ensuring its
stability, sustainability, substance and show for the benefit of our
most important stakeholder, namely the consumer. It is with this
mindset that we now intend to work hard, with our partners at the FIA
and FOM, our shared goal being to optimise the future of Formula
One." KEY PROPOSALS Technical 2009: ▪ More than 100% increase in
mileage per engine (eight engines per driver per season) ▪ Reduction in
wind tunnel and CFD (computational fluid dynamics) usage ▪ Engine
available at €8 million per team per season 2010: ▪ Engine available at
€5 million per team per season ▪ Gearbox available at €1.5 million per
team per season ▪ Standardised KERS (put out to tender, with a target
price of €1-2 million per team per season) ▪ Target a further 50%
reduction of the 2009 aerodynamic development spend ▪ Specified number
of chassis, bodywork and aerodynamic development iterations
(homologations) during the season ▪ Prohibition of a wide range of
exotic, metallic and composite materials ▪ Standardised telemetry and
radio systems Sporting 2009: ▪ Testing reduction (50%) ▪ New
points-scoring system (12-9-7-5-4-3-2-1), to give greater
differentiation/reward to grand prix winners ▪ Race starting fuel loads,
tyre specifications and refuelling data to be made public 2010: ▪
Commitment to recommend new qualifying format ▪ Radical new
points-scoring opportunities (eg, one constructors’ championship point
to be awarded for the fastest race pit stop) ▪ Further testing
reductions (four four-day single-car pre-season tests plus one
single-car pre-season shakedown) ▪ Reduction of grand prix duration
(250km or a maximum of one hour 40 minutes) pending the approval of the
commercial rights holder Commercial 2009: ▪ Increased data provision
for media ▪ Explore means by which the presentation of Formula One
action can be more informatively and dynamically presented, common to
other sports such as tennis and cricket, to dramatically improve
engagement with the public ▪ Nominated senior team spokesman available
for TV during grand prix ▪ Commitment to enhance consumer experience via
team and FOTA websites ▪ Mandatory driver autograph sessions during
grand prix weekends 2010: ▪ Commitment to enhance consumer experience
via TV coverage KEY DEMOGRAPHICS OF GLOBAL AUDIENCE SURVEY ▪ 17
countries surveyed ▪ First ever poll of Formula One devotees alongside
non-Formula One devotees (ie, marginal and/or low interest fans) ▪
Responses were weighted according to the size of viewing market in each
country (to avoid small markets skewing the results) ▪ Results were
segmented by interest level in Formula One, demographic profiles (age
and gender), country and region ▪ Total audience is comprised of: -
Regular fans (25% by volume, predominantly male, cross section of ages)
- Moderate fans (44% by volume, female and male, cross section of ages)
- Infrequent fans (31% by volume, unlikely to watch grands prix,
predominantly female, cross section of ages) KEY FINDINGS OF GLOBAL
AUDIENCE SURVEY 1. F1 isn’t broken, so beware ‘over-fixing’ it The
current race format is not viewed as fundamentally broken (across all
levels of Formula One interest) and therefore doesn’t require radical
alteration. There is a strong desire for Formula One to remain
meritocratic, while consumer interest is driven most by appreciation of
driver skill, overtaking and technology. Implication: there is no
evidence to suggest that grand prix formats need ‘ tricking up’ via, for
example, handicapping, sprint races, reversed grids or one-on-one
pursuit races. Formula One audiences appreciate the traditional
gladiatorial, high-tech nature of the sport and would not respond
favourably to a perceived ‘dumbing down’ of the current format. 2. F1
needs to be more consumer-friendly An individual’s view or understanding
of Formula One is framed almost entirely by their local broadcaster.
Unlike most global sports, the vast majority of ‘ consumption’ of
Formula One is via race-day TV coverage, supplemented in part by
traditional, non-specialist newspaper coverage. Formula One fans are
also mature consumers of new media channels (eg, on-line, mobile) and
other touch points (eg, gaming, merchandise). The global nature of
Formula One, although an attractive characteristic in itself, impedes
the uniformity of race schedules, and often results in consumption of a
race being limited to locally broadcast TV highlights programmes. Only
devotees (25% of the total potential viewing audience) are likely to
watch a race live if it occurs outside peak viewing times.
Implication: significant opportunities exist to build audience via other
channels such as internet and mobile. 3. Major changes to qualifying
format are not urgent When asked to consider alternative qualifying
formats, all fan types expressed a modest preference for a
meritocratically determined starting grid. There was some degree of
interest in allowing luck to play a part in shaping the starting order,
but the general sentiment was that the fastest driver should always
start from pole. Implication: there may be justification for minor
modifications to the current qualifying format, following further
trials; however, a major change to the format will not result in a
significant increase in audience. 4. Revisions to the points-scoring
system As with qualifying, all audiences want a meritocratic
points-scoring system. This means that they want winning grands prix to
count for more than it does currently. There is an indication that all
audiences would like to see a greater points reward for winning grands
prix. Implication: a minor adjustment to the existing points system is
justified 5. Evolution of pit stops and refuelling All audiences view
pit stops as integral to their enjoyment of grand prix coverage;
however, they rank the most important and compelling aspect of pit
stops as tyre changing rather than refuelling. Race strategies were not
highly ranked as a determinant of interest in Formula One.
Implication: audiences are unlikely to diminish if refuelling is
discontinued. Tyre changing is an important driver of audience interest
(in pit stops) and should not be further automated. TEAM PRINCIPAL
QUOTES Sir Frank Williams (Team Principal, AT&T WilliamsF1) “The
new FOTA group has the best of intentions in representing the teams’
best interests, both technically and commercially. FOTA wishes to enjoy
an open and productive relationship with both the FIA and FOM.” Dr
Mario Theissen (BMW Motorsport Director and Team Principal, BMW Sauber
F1 Team) “The FIA and FOTA are pursuing the same aims – to increase the
sporting value of Formula One and to cut the expenditure required to do
so. Reducing costs is definitely the way to go. The members of FOTA
have made great efforts to this end over recent months and have set out
a whole series of measures which will already allow substantial cost
savings in 2009. Further savings for the coming years will follow in
due course.” Dr Vijay Mallya (Chairman and Team Principal, Force India
Formula One Team) “Formula One is undoubtedly about competition and
striving to beat one’s opposition. While this is very much the essence
of the on-track action, unity and collaboration off-track is crucial.
The open spirit of discussion and co-operation to increase both the
spectacle and financial viability of Formula One are entirely positive
for the sport and its investors – ie, the teams, the sponsors and of
course the fans. I fully support the initiatives and hope that between
FOTA, the FIA and FOM we can find a balance to safeguard the wonderful
sport we have before us now.” Flavio Briatore (Team Principal, ING
Renault F1 Team) “Through FOTA we have found unity among the teams as we
strive to provide a sustainable future for Formula One. From a
commercial standpoint, we recognise that while our sport enjoys a
remarkable global reach, there is still room to improve its appeal as
an investment opportunity. It is clear that we need to strengthen
Formula One as a show and through our global audience survey we have
given a voice to the consumers of Formula One. The results confirm that
we must exploit the potential of new media, while continuing to enhance
the TV experience, which remains the most important interface with the
public. It is therefore essential to provide our audience with more
information and to make the teams and drivers more accessible to ensure
that we deliver a product that is always exciting, unpredictable and
compelling both on and off the track. I am confident that, working
together, and in a constructive spirit with both governing bodies FIA
and FOM, FOTA can help build a solid future for the sport in the years
ahead.” Tadashi Yamashina (Team Principal, Panasonic Toyota F1)
"FOTA has already achieved a great deal and we can be very
satisfied with the progress we have made, but there is a lot of work
still ahead of us. It is vitally important not to neglect the soul of
grand prix racing. Formula One is the pinnacle of motorsport and our
challenge is to retain the DNA of the sport as a technological as well
as a human contest, while also delivering value for money for all
stakeholders, and this includes the fans. We all embrace the need to
cut costs, and the significant savings achieved by FOTA and the FIA at
the end of last year are a promising start. FOTA’s strength lies in
the unity of the teams. This unprecedented joint initiative, which we
hope will work in combination with the FIA and FOM, can inspire Formula
One to conquer the challenges facing it and the wider world."
Christian Horner (Team Principal, Red Bull Racing) “Since FOTA was
established in the summer of 2008, the organisation has already made
strides, in conjunction with the FIA, towards achieving significant cost
savings for the 2009 season. Through FOTA’s working groups, the teams
are acting as a unit for the first time to ensure Formula One improves
its appeal to all generations of fans, while continuing to control
costs. Red Bull fully supports the work of FOTA.” Stefano Domenicali
(Team Principal, Scuderia Ferrari Marlboro) “United in our intentions
and with a common vision for the future of Formula One, while remaining
rivals on track: these are the key strengths of FOTA. It is thanks to
its creation that we have already achieved significant results in just
a few months. Racing is part of Ferrari’s DNA and will always be so,
which is why we are working very hard, along with all the other teams.
We must continue on this track to make our sport more exciting for the
fans and more attractive for our current partners and also potential
ones, while maintaining close links with the production of road cars.”
Franz Tost (Team Principal, Scuderia Toro Rosso) "FOTA has already
achieved a great deal in a short space of time, thanks to unprecedented
unanimity amongst the teams. The motto ‘united we stand, divided we
fall’ has been around for many years, but Formula One team owners took a
while to take it on board! FOTA should not rest on its laurels, but
continue to collaborate as closely as possible with the FIA and FOM to
ensure the continued success of Formula One as a sport, as
entertainment and as a business." Martin Whitmarsh (Team
Principal, Vodafone McLaren Mercedes) "FOTA has already achieved
more than any other assembly of Formula One teams in the history of our
sport, and those achievements are both a result of and a testament to
the strength of FOTA's unity. On track, Formula One teams remain as
competitive as ever; but, off track, in collaboration with the FIA and
FOM, motivated by our shared ambition to steer grand prix racing to
ever-greater successes, we're now devoting a great deal of time,
resource and radical thought to making a concerted effort to enhance
the benefits of all Formula One stakeholders – the teams, the
manufacturers, the sponsors, the media and above all the fans."
Ross Brawn “FOTA represents a hugely important initiative, all of the
Formula One teams working together to combine their strengths to the
benefit of all aspects of our sport, Formula One. Never before have I
experienced the level of unity and commitment of the teams that has
been demonstrated within FOTA under the leadership of Luca di
Montezemolo. This is a complementary process to the work of the FIA and
FOM and enables the teams to present unified views on how we can take
both our sport and the motorsport industry forward. As an ex-rugby
player, I was taught to apply the principles of competition on the
field and a spirit of co-operation and unity off the field. That is the
principle of FOTA." NOTES TO EDITORS SUMMARY HISTORY OF FOTA
WITH KEY DECISION TIMELINES 29 July 2008, Maranello  The F1 teams
unanimously agree to establish the Formula One Teams Association – FOTA
– to work with the FIA and FOM on regulations and commercial conditions
to provide a framework for a strong and dynamic sport 11 September
2008, Monza  Signature of the Articles of Association. FOTA becomes
fully operational  Luca di Montezemolo (Ferrari) and John Howett
(Toyota) are elected Chairman and Vice Chairman  Martin Whitmarsh
chairs the Sporting Working Group  Ross Brawn chairs the Technical
Working Group  Flavio Briatore chairs the Commercial Development
Working Group  All team principals are represented in the Executive
Committee  Decisions are taken with a 70% majority rule 4 October
2008, Shanghai  The teams agree a first package of measures to be
introduced in 2009; it is the first time ever that unanimous agreement
is reached among all the Formula One teams  In 2009, a critical year
for the difficult economic environment, the teams define a set of
measures tailored to addressing immediate concerns 4 November & 4
December 2008, London  The teams agree to further measures,
implementing substantial cost-cutting for 2009 and 2010, and additional
initiatives to improve the show 10 December 2008, Monaco  The
proposals are presented to the FIA and agreed with immediate
implementation thanks to the unanimity of the teams 8 January & 3
February 2009, London  The teams further refine their proposals  A
longer-term strategy is agreed to introduce stable regulations,
addressing the need to reduce costs and increase revenues. 5 March
2009, Geneva  FOTA’s Formula One roadmap is unveiled FOTA EXECUTIVES
▪ Chairman – Luca di Montezemolo ▪ Vice Chairman – John Howett ▪
Chairman, Sporting Working Group – Martin Whitmarsh ▪ Chairman,
Technical Working Group – Ross Brawn ▪ Chairman, Commercial Development
Working Group – Flavio Briatore ▪ Secretary General – Simone Perillo
Contacts: Tim Bampton +44 7825 189 201 Stuart Dyble +44 7599 835 700 media@teamsassociation.org