FIA World Motor Sport Council

The FIA and the World Motor Sport Council have been striving to reduce emissions from all their championships by changing championship regulations frequently.[9] The consistent rule changes have lead to Formula One engines to be the most efficient car engines in the world.[9] In October 2019 the World Motor Sport Council approved the 2021 Formula One regulations which intends to enlist major reforms to the sport especially towards a more carbon-neutral status.[6]

Formula One motor sport has one of the largest CO₂ footprints of any sport.[10] Between 1950 to 1984 and 1994 to 2010 the dominate engine design philosophy of the cars was to increase horsepower and revolutions per minute, as to maximise speed with little regard to the fuel consumption.[10] This is because for most of Formula One history Grand Prix's were conducted with refuelling permitted. Following 2010 when refuelling was re-banned, an emphasis on fuel efficiency and fuel cooling was once again considered as an integral factor in race-winning.[10] This new meta (optimal strategy'(s)) gave rise to the implementation of TERS (thermal energy recovery system) and KERS (kinetic energy recovery system)[10] in Formula One Grands Prix. Mourao's study shows a reasonable relationship between the period of non-refuelling and considerably less CO₂ emissions per car.[10]

In 2014 the Mercedes-Petronas World Championship winning car was estimated to achieve the same speed and covering the same distance with 1/3 of the fuel usage- in combination with the hybrid power engines utilising KERS and TERS.[10] It was estimated that the 2014-spec engine attained a thermal efficiency of 45%, for reference the average thermal efficiency of a coal fire-power station is 33%. Thus, "the power used to drive an electric car is likely to come from a less efficient source than an F1 engine."[10] Reducing net greenhouse gas emissions from Formula One cars is ideal for the FIA and the sport. Environmental standards are noted to be one of the key issues of the World Motor Sport Council going forward.[1][10]

The FIA Formula One World championship is the second biggest sporting business in the world, with an estimated annual turnover of 4.5 to 8 billion US dollars per annum.[11] The World Motor Sport Council approved FIA F1 rule that provides 'heritage payments' to a select few Formula One teams that, serve as a "proxy for fame[d] and pass successes" of those teams for the spectators and sponsors.[11] In 2015, Formula One teams Force India and Sauber F1 submitted a complaint to the competition directorate of the European Commission.[12]

The complaint was regarding the "allocation of revenues from the collective sale of media rights".[11] This resulted in the European Parliament requesting the European Commission to enact an official examination into the Formula One motor sport industry.[11] Force India's and Sauber F1's allegations to the FIA, WMSC and FOM were:

1. It is alleged that FIA, WMSC and Formula One Group "exploit their market power by imposing discriminatory contracts in the distribution of media revenue that specifically disadvantages smaller teams".[11]
2. It is alleged that this practice is synonymous to the formation of a cartel. Which promotes an "unfair competitive advantage" in both a competition and financial sense.[11]

Budzinsk and Kock believe that this case requires significantly further investigation to correctly understand and resolve the alleged affair.[11]

Bernie Ecclestone 2012 Bahrain Grand Prix

The FIA's Formula One Group is a multinational enterprise that has major global partners and stakeholders: Including:

• Aramco
• DHL
• Emirates
• Heineken
• Pirelli
• Rolex
• Mercedes AMG
• Amazon
• Liquid Moly
• 188BET
• Petronas
• Champagne Carbon
• Cyber1
• Securitas
• Hotels for Hope

Source:[13]

The FIA, the World Motor Sport Council, stakeholders, and partners of Formula One all agreed upon the introduction of a universal team budget cap to promote impartiality in Formula One. This is particularly due to the exceedingly diverse expenditures across all F1 constructors. Additionally, it has been agreed that an overhaul of circuit design, like that of Vietnam, will create "spectacular racing and good passing moves".[14]

At the beginning of 2017, the approval from the World Motor Sport Council was given to sell Formula One Group to Liberty Media. At the conference each sitting member of the World Motor Sport Council was able to make any inquires they may have about the details of the arrangement. According to InsiderRacing.com the approval implies that the FIA WMSC "Believes that Liberty [Media] is well positioned to ensure the continued development of its pinnacle Championship [F1]".[15]

The FIA as a shareholder in the former company Delta Topco, thus, is thereby involved in the sale of the Formula One Group to Liberty Media. The FIA is apart of the new commercial contract with Liberty Media and remains a shareholder of Formula One Group.[15]

Bernie Ecclestone was the former Chief executive office of the Formula One Group and thus was a sitting member of the World Motor Sport Council. Christian Horner, Red Bull Racing Team principal commented on Liberty Media's acquisition of Formula One, stating how he hopes that both Bernie Ecclestone and Liberty Media will work together to help F1 to continue to grow as a sport.[16] In a similar way to what Ecclestone achieved in the expansion of Formula One. Such as 'racing in Singapore and Russia', and opening Formula One to the world stage through widespread wholesale of Formula One broadcasting packages.[16]

In October 2019, Formula One team, Red Bull Racing, issued a comprehensive report with concerns regarding Ferrari's 2019 engine.[17] Ferrari had achieved six consecutive pole positions at which were achieved on circuits requiring different aerodynamic configurations. [18] In November 2019 at the 2019 United States Grand Prix Circuit of the Americas, Austin, Texas, the FIA conducts a "full investigation" into Ferrari's engine. The FIA released a statement post-investigation saying that both Ferrari and the FIA had "reached an agreement".[19] The FIA's initial response to the issued lead to all non-Ferrari teams to produce a mutual statement demanding that they receive "full and proper disclosure" given their "strong objection" to the settlement.[19]

The teams stated they would "[reserve their] right to legal redress".[19] Red Bull Racing, as one of the objecting teams has claimed that they are considering suing the FIA and the World Council for the $24 million in prize money lost to Ferrari's second placement.[20] The FIA later addressed the legality of the Ferrari-spec 2019, stating they could not ensure the engine was "consistently legal".[19] The FIA reneged on any further investigations on the premise that "it would be an impossibility to provide the unequivocal evidence of a breach".[19]

At the World Motor Sport Council headquarters, there was a meeting to discuss the ongoing investigation. This meeting included Ferrari F1 Team's principle Mattia Binotto who is an active member of the World Motor Sport Council.[21][3] The FIA President and FIA technical department did not provide the information requested in the complaint received by the World Motor Sport Council from the other teams.[22] The World Motorsport Council expressed support for the FIA President and the FIA Technical Department regarding the overall management of the case.[17] Subsequently, this caused Mercedes Formula 1 Team principal, Toto Wolff to resign from any further protesting of the non-disclosed settlement between the FIA and Ferrari. Based on the advice from Mercedes parent company, Daimler,due to possible "damages to Formula One and the Mercedes-Petronas Formula One Team's image".[21]

The FIA and the non-Ferrari teams are currently in disagreement over the handling of the issue,[21][23] Jean Todt, FIA President, has stated that it was a complicated decision that ultimately lied on the interest of Formula One as a sport, as alternative options such as the FIA International Tribunal could take "several years" to be concluded.[23] The World Motor Sport Council nor the FIA are permitted to release the full details of the agreement without the "consent of the defendant", claimed Todt.[23]