US Justice Committee launches F1 investigation

Formula 1 has fallen into a real crisis and is particularly hoping for the market in the United States of America. The FIA, which writes and oversees the rules for the sport, has given the green light to the Andretti organization’s F1 application to join the grid as early as 2025.

But F1 advertising rights holder Liberty Media subsequently rejected the Andretti offer, citing various reasons for its decision. The FIA ​​has not yet publicly responded to Liberty’s decision, but for now Andretti has been told not to leave and return until they have an engine manufacturer behind their offer.

The name Andretti is well known in the USA because Mario won the F1 championship in 1978. Since then, the family has built a motorsport empire, racing on three continents and in various racing series, but was initially rejected by F1.

Now the US Judiciary Committee has opened an investigation into Liberty Media’s refusal to include Andretti. Jim Jordan, the chairman, has written to Liberty Media requesting documents related to the Andretti decision. Twelve members of Congress have signed the document expressing concerns that antitrust laws have been violated. The document was sent to FOM CEO Stefano Domenicali and Liberty Chairman Greg Maffei.

“The Judiciary Committee is responsible for examining whether federal competition laws are sufficient to protect against monopolies and other unfair restraints on trade.” the letter said, according to NBC.

“Sports leagues such as Formula 1 operate in an important area of ​​antitrust law where a certain level of consultation is required to develop the product.

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“However, if a sports league deviates from its rules and practices in a way that reduces competition and weakens consumer interest in the product, the collusion may amount to anticompetitive conduct.”

Those behind the committee’s letter have done their homework and state the reasons why they were denied entry to Formula 1 before 2028.

“The excuses put forward for refusing Andretti Cadillac’s entry appear to be sham and arbitrary and have no connection with Andretti Cadillac’s suitability to compete in Formula 1.” It says.

“For example, Formula 1 claimed that a new team could only add value to Formula 1 by ‘fighting for podiums and race wins’. However, the FIA ​​​​had already analyzed and approved Andretti Cadillac’s technical capabilities to compete with current teams, and most current teams in Formula 1 do not meet the Formula 1 standard of regularly competing for “podiums and race wins” to fight.”

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This is a clear rejection of that statement made by Liberty in its response to the Andretti F1 application. Jordan is now attacking the FOM’s demands that Andretti find a new F1 engine manufacturer.

“Formula 1 also accused Andretti Cadillac of trying to use an existing engine manufacturer because it “could harm the image and reputation of Formula 1.” However, at the same time, Formula One stated that Andretti Cadillac would manufacture a new engine from General Motors in the team’s first year, a new engine would pose a challenge for the new team.”

Jordan recorded the FIA’s reaction when Liberty Media first rejected Andretti’s proposal. FAI president Mohammed Ben Sulayem was disappointed with the FOM’s decision and claimed the refusal to let Andretti in was wrong “Everything revolves around money” something Jordan alludes to next.

“Weak teams want to be protected from competition to the detriment of consumers and an additional team would compete for prize money and sponsorship.

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“If Formula 1 has to hinder competition and harm consumers to protect struggling competitors, then the entire Formula 1 model could be broken and the company cannot hide behind a sports league’s need to prosecute anti-competitive behavior. “

“Delaying Andretti Cadillac’s entry into Formula One for even one year would harm American consumers and benefit failing Formula One teams.”

The letter sets out a clear legal line of attack that the Judiciary Committee will pursue. In addition to requesting data and documents related to Liberty’s review of the Andretti Offer, Jordan has requested all communications between teams regarding new proposed listings, as well as information regarding dilution charges set forth in the Concorde Agreement.

Liberty Media has until May 21 to respond.

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Legal pressure from the US could well get Liberty Media out of the bind it finds itself in. Having fought several duels with the FIA ​​over the past two years, FOM found itself in the dubious position of representing the team’s opinion on Andretti.

The teams clearly don’t want an eleventh entrant as they have failed to set the entry fee appropriately. The Concorde agreement calls for entry after a $200 million anti-dilution payment to be divided among the ten existing teams.

At $200 million, that would mean one year of compensation, and from then on, 11 teams would share the money once it was divided among ten teams. There is currently talk that the new Concorde agreement in 2025 will increase the entry fee to around $600 million.

Of course, Liberty Media could increase the prize pot and silence any rumors of financial losses, and the holder of the commercial Formula 1 rights could secretly want Andretti to join the sport, as this will undoubtedly increase interest in Formula 1, particularly in the USA, would increase.

Although Liberty was forced by US authorities to admit Andretti into Formula 1, it was found to be defending the teams’ interests. This solves a political problem they are currently facing.

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Formula 1 has delivered on its return to the streets of Miami. Daniel Ricciardo achieved an unlikely fourth place in the sprint and Lando Norris finally prevailed in an eventful Grand Prix on Sunday.

Carlos Sainz regretted the timing of the safety car and claimed: “From then on, as I said, I had a good pace. If we could have extended another lap, we could have won this race like Lando, because we were only one lap ahead of the safety car and were ahead of Lando at that point, so I’m a little frustrated again.”…. READ MORE