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U.S. Congress weighs in on Andretti F1 situation

Chris Medland May 1, 2024 1:06 PM ET

Members of the U.S. Congress have written a letter addressed to Liberty Media CEO Greg Maffei to express “concerns with apparent anti-competitive actions” that could stop Andretti Global’s bid to enter Formula 1.

Andretti has partnered with General Motors on a prospective F1 team, but has so far been knocked back in its attempts to join the grid by Formula One Management (FOM). While the entry was not completely rejected, FOM stated it would only consider Andretti’s application for 2028 when GM intends to build its own power unit.

Mario Andretti had stated talks were planned between the team and FOM at this weekend’s Miami Grand Prix, but was present in Washington on Wednesday following the publication of the letter from a bipartisan group of members of Congress, led by Republican John James who represents a district in Michigan.

“FOM’s rejection appears to be driven by the current lineup of European Formula 1 race teams, many of which are affiliated with foreign automobile manufacturers that directly compete with American automotive companies like GM,” the letter reads. “It is unfair and wrong to attempt to block American companies from joining Formula 1, which could also violate American antitrust laws.”

The 12 members call for responses to three specific questions, asking:

* “Under what authority does FOM proceed to reject admission of Andretti Global? What is the rational for FOM’s rejection, especially with respect to Andretti Global and its partner GM, potentially being the first American-owned and America-built race team?

* “The Sherman Antitrust Act of 1890 outlaws unreasonable restraints on market competition to produce the best outcome for the American consumer. How does FOM’s denial of Andretti Global and GM, American-owned companies, square with Sherman Act requirements, since the decision will benefit incumbent European racing teams and their foreign automobile manufacturing affiliates?

* “We understand that GM intends to re-introduce its Cadillac brand into the European market, which would support thousands of good-paying American automotive jobs, especially with Formula 1’s worldwide audience and its halo effect on its racing teams and sponsors. How much did GM’s and Andretti’s entrance into racing competition taking a portion of the racing market share and GM’s entry into the European market taking market share each play into the decision to deny admission to the Andretti Global team, given the public outcry of incumbent Formula 1 teams against a new American competitor?”

The letter requests responses by Friday, May 3, although does not appear to reference FOM’s own statement outlining its reasoning for focusing on 2028 for any Andretti Global entry.

Explaining its standing alongside the FIA in determining whether to add a new team to the grid, FOM stated in January: “The process set out in the invitation provides that both the FIA and the Commercial Rights Holder must consider an application suitable in order for a new entrant to be selected.”

FOM also added that Andretti’s need to use a compulsory power unit supply from Renault in 2026 and 2027 before GM’s own power unit was ready “would be damaging to the prestige and standing of the Championship,” while it claimed Andretti’s brand would benefit from being in F1 more than F1’s would by accepting Andretti’s entry, and suggested an 11th team would “place an operational burden on race promoters” due to the space at certain venues.

“We would look differently on an application for the entry of a team into the 2028 Championship with a GM power unit, either as a GM works team or as a GM customer team designing all allowable components in-house. In this case there would be additional factors to consider in respect of the value that the applicant would bring to the Championship, in particular in respect of bringing a prestigious new OEM to the sport as a PU supplier.”

Formula One Management Ltd — a company registered in the UK — and Liberty Media have yet to provide a response to the letter.

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Cost cap “inequities” have triggered F1’s divided grid, says Szafnauer
Formula 1’s divided grid is the consequence of "inequities" that have existed within the cost cap, reckons former team boss Otmar Szafnauer.

Jonathan Noble Apr 29, 2024 at 3:47 AM

While the introduction of a spending limit for teams in 2021 has helped compress the field, with the front to the back of the grid having never been closer, this season has witnessed an interesting split among the competitors

The top five squads – made up of Red Bull, Ferrari, McLaren, Aston Martin and Mercedes – have appeared to break away from the back of the pack, which has helped them effectively lock out the points-scoring positions.

With all teams limited to the same cost cap restrictions, this divide has prompted some intrigue about the causes. Former Alpine and Aston Martin team boss Szafnauer thinks there are elements of the spending restrictions that have been the catalyst.

In particular, he thinks some teams have done much better at restructuring themselves to make the most of cost cap opportunities, at the same time as legacy infrastructures advantages have also been locked in.

Speaking at an event to promote his new EventR itinerary management app about why he felt the field has split, Szafnauer said: “There's a couple of areas I can think of.

“One, which I experienced, is there are some teams that have done a better job at cost cap structure. They can spend $10-15 million more than some others, and you have to remember this is at the margin of performance.

“Say that $15 million more that you've got, because of the way you organised yourself, you can buy more talent, or you can do other experiments that the other guys cannot do.

“Plus, although there's an OpEx (Operating Expenditure) and a CapEx (Capital Expenditure) cost cap, I think on the CapEx side, we inadvertently froze some inequities.

“There are some tools that the bigger teams have, and that the little ones are now trying to catch up and gain. And it takes time, because it was like $36 million over four years or something.

“I remember we faced this at Alpine. We couldn't buy what we wanted to buy, we had to do it over time. And the big teams, when they knew the cost cap was coming, because they had the money, they just bought all the stuff [there and then].”

Szafnauer said there were aspects of critical car performance that were reliant on teams having plenty of spending capacity left in the cost cap if they wanted to maximise returns.

“I'll give you an example,” he said. “Some of the teams run floors that are transparent, So you can actually see the flow, while others don't. They bought that stuff before.

“As a small example, when I was talking to my aerodynamicists [at Alpine], they said: We need a transparent floor, so I can actually see what's going on. Others have it!”

Szafnauer also thinks that one aspect totally outside the cost cap is important too – driving talent.

“Toto [Wolff] is always saying it, but the best drivers want to be in the best teams,” he added. “So that adds a little bit too, as you still have the best drivers in the best teams.”

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Originally posted by monoblok:
It constantly keeps getting repeated that he was more than a little disgusted with Horner over the scandal. Or perhaps maybe that he believes the girl rather than Horner over the incident, or possibly that he actually knows something incriminating.

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I've read several articles which link his displeasure to the constant stirring of the pot by Marko and Max's dad

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Max is talking very nice about staying at the team right now and why not? The cars will be updates next year with the big change in '26 and so '25 cars will just be refined versions of today's. He has a year on his contract too.
The Red Bull car should still be the equal if not better next year so why wouldn't Max wait to see what develops elsewhere as everyone wants him anyway

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While Newey originally had a contract that ran until the end of 2025, and had a further non-compete clause that could have sidelined him for another 12 months, his legal representatives have agreed with Red Bull to an earlier parting of ways.

Red Bull has announced that Newey’s contract will end in the first quarter of next year, with it understood that from March he will in theory be free to join a rival outfit.

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Originally posted by 9mmepiphany:

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Max is talking very nice about staying at the team right now and why not? The cars will be updates next year with the big change in '26 and so '25 cars will just be refined versions of today's. He has a year on his contract too.
The Red Bull car should still be the equal if not better next year so why wouldn't Max wait to see what develops elsewhere as everyone wants him anyway

I throught his contract ran through 2028