Ron Dennis claims Ecclestone stole Formula One from teams
The Executive Chairman of the McLaren group Ron Dennis has accused Formula One CEO Bernie Ecclestone of stealing the sport from the teams, and as bold as that might sound, it makes perfect sense.
Bernie Ecclestone came to power in the 1970’s, as he grew his empire through the sale of television rights to the sport. That is when the Concorde Agreement came into being. Having the right to take full ownership of the television rights of all participating
teams, he offered them a fixed annual payment. Moreover, the Italian also has full control over the administration, set-up and logistics of Formula One races.
The Concorde Agreement signed in 1997 looks set to complete its 15-year maturity period. With the contract expected to expire at the end of 2012, Ecclestone’s power is once again being challenged, as Ferrari look set to take charge of a breakaway series.
Dennis’ recent statement suggests Ferrari isn’t the only team resisting Ecclestone’s stranglehold over the sport.
"Bernie effectively stole Formula One from us," the McLaren boss is quoted to have said in the CEO’s latest biography named ‘Bernie’.
Ron Dennis further added, “He used this commercial benefit to persuade the teams to accept a contract that eliminated them from the passing of rights as had previously existed."
With the evolution and increasing fan following of the sport, perhaps it’s safe to say that Ron Dennis does have a valid point there. Football clubs nowadays have their own TV channels – MUTV for Manchester United, Arsenal TV for Arsenal Football Club, etc.
With the rapid breakout of IT worldwide, the availability of information has become nearly a given. On that note, if teams were to have control over their own telecasting rights, the possibilities could be endless. The season might start from March and conclude
at the end of the year, but the decentralised telecast could allow teams to broadcast exclusive shows about the team, and news all year round.
Bernie Ecclestone though was unruffled by the allegations, and said, "It's only when things started to look good, and I invested the money and it started to work, that they thought maybe they should have done it."
With those words, perhaps it’s not entirely a one sided debate. The CEO might have a point there. Back in 1997 when the Concorde Agreement was signed, the situation was different. In all fairness, it was an investment on the part of Ecclestone for a venture
that could either fail or reap rewards in the future – In a nutshell, it was open to risk. The teams have been given a constant amount since the Agreement was signed, nullifying the uncertainty for teams. Formula One has established its own exclusive niche
in the world of motor sport, and it could be argued that Ecclestone used his entrepreneurial vision to cash in.
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