Formula One’s commercial rights holders and the FIA have caught the attention of the UK’s Serious Fraud Office for a deal made back in 2013 which saw the organization accept a high volume of money for signing the Concorde Agreement. The controversy stems from an investigation conducted by ITV.
It was revealed that the FIA was offered and accepted a £3.9m lump sum payment to sign the agreement, while also receiving a 1% stake in Formula One’s commercial rights. In order to prevent bias when creating the regulations, the FIA is supposed to remain independent from the commercial side of the sport, making the FIA’s transaction questionable.
Although the 2013 Concorde Agreement was signed by Bernie Ecclestone, the former F1 leader was not involved in the negotiation process. The agreement expires in 2020. Liberty Media, the company that recently purchased a controlling stake in the sport, had no knowledge of the FIA’s stake in the sport until just before the deal was completed.
Some experts believe that the FIA’s involvement in the sport may favour the top teams that are in the agreement, as the FIA is in charge of regulation changes to the sport.
The FIA’s involvement in the agreement may be a breach of The Bribery Act, leading the UK’s Serious Fraud Office to get involved. At the moment, the SFO is analyzing the details of the agreement to determine whether a formal investigation is warranted.
