Teams Reject Bernie's Money

[cosworth151]

According to The Financial Times, Bernie offered the teams a 60% share of the underlying profits of F1. This would be up from the 50% under the Concord Agreement. He attached the condition that the teams remain in F1 through the 2012 season. Ecclestone says the teams declined his offer.

The reports I've seen don't specify when the offer was made, if it was before BMW and Toyota withdrew or after.

The report also says that Renault is not signing any F1 related contracts that extend past the 2010 season.

[Jericoke]

There has to be more to it than giving the teams 20% more money.

Unless of course F1 isn't making its money as 'profits', but rather lining Bernie's pockets through other streams.

[Scott]

Seems a bit strange, unless the Concorde Agreement really is just a gentleman's handshake, and what he wanted was an unbreakable contract. 

Latest is that Renault has sold 40% of the team to some Russians.

60-50 is 10, Jeri 

[cosworth151]

It's a 20% increase, i.e. 20% more than they were getting.

[Jericoke]

Seems a bit strange, unless the Concorde Agreement really is just a gentleman's handshake, and what he wanted was an unbreakable contract. 

Which would make it 'unsecret' as well.

Latest is that Renault has sold 40% of the team to some Russians.

The Russians might welcome Piquet Jr back.  You know how they are with their walls...

60-50 is 10, Jeri 

Let's say that f1 revenue is $100 (add on a few zeroes)

The teams currently get $50.  Bernie proposes to change it to $60, a difference of $10.  $10/$50 = 1/5 = 20%. 

[Alianora La Canta]

I believe the offer was made near the start of 2009... ...right when FOTA was at its most militant due to the FIA's behaviour. Hence the rejection.

[John S]

I believe the offer was made near the start of 2009... ...right when FOTA was at its most militant due to the FIA's behaviour. Hence the rejection.

That sounds about right Ali, it's when Bernie was feeling most vunerable.

The other problem with his generous offer is how the actual profit, this higher percentage is derived from, is quantified.

Knowing Bernie there is a bloody big catch. 

[lkjohnson1950]

I suspect profit is low due to the servicing of the buyout loans.

Lonny