Sixth Concorde Agreement (2009)
On 7 December 2004, at a meeting attended by the bosses of all the teams but Ferrari, Ecclestone offered a payout of £260,000,000 over three years in return for unanimous renewal of the Concorde Agreement, which would guarantee the continuation of Formula One in its present form at least until the expiration of that contract.
On 19 January, Ferrari announced that it had signed an extension to the 1997 Agreement to expire on 31 December 2012. Later in 2005, Red Bull and Jordan/Midland also signed an extension. On the 7 December 2005, Williams F1 became the fourth team to sign an extension to the agreement.
On 27 March 2006, the five Grand Prix Manufacturers Association-backed teams submitted their applications for the 2008 season. On 14 May 2006, the five GPMA-backed teams signed a Memorandum of Understanding with the commercial rightsholders (CVC/Ecclestone) which formed the basis of the next Concorde Agreement. As such, a full Concorde Agreement was not in place for the 2008 season, with the Memorandum and other individual teams acting as a stop-gap solution.
On 29 July 2008, the ten currently competing teams created the Formula One Teams Association (FOTA) to negotiate the terms of contract. After a dispute between FOTA and the FIA in the first half of 2009, a new Concorde Agreement was signed by Mosley and all of the teams except BMW Sauber, which had announced its intention of withdrawing from the sport at the end of the season shortly beforehand. The new agreement provides for a continuation of the terms of the 1998 agreement, and runs until December 31, 2012. At the same meeting of the FIA World Motor Sport Council, a programme of resource restriction was also agreed upon, as were a revised set of sporting and technical regulations for the 2010 season.
Read more about this topic: Concorde Agreement
Famous quotes containing the words sixth and/or agreement:
“If you are willing to inconvenience yourself in the name of discipline, the battle is half over. Leave Grandma’s early if the children are acting impossible. Depart the ballpark in the sixth inning if you’ve warned the kids and their behavior is still poor. If we do something like this once, our kids will remember it for a long time.”
—Fred G. Gosman (20th century)
“That which corrodes the souls of the persecuted is the monstrous inner agreement with the prevailing prejudice against them.”
—Eric Hoffer (1902–1983)