F1 sponsors threaten to walk out over infighting

by Drew Barrand, Marketing 19-Jul-05, 08:30

LONDON - Formula One could face a mass exodus by its sponsors if a standoff between management and the car manufacturers escalates further.

A host of F1's top-tier sponsors have contacted other motor-sports championships in the past few weeks about switching allegiance, should a threat by the manufacturers to form a breakaway series in 2008 become reality.

The sponsors have raised serious concerns about the future of F1, but are keen to maintain their links with motor sport through associations with less troubled championships.

The FIA GT Championship, World Rally Championship and A1 Grand Prix are all understood to have been contacted by prominent F1 sponsors looking to set up contingency plans.

F1 has been hit by controversy this season, including a multi-team boycott of the US Grand Prix last month.

The existing Concorde Agreement, which governs the commercial relationship between the teams and the sport, expires at the end of the 2007 season. Only Ferrari and Red Bull have committed to a deal with Formula.

One Management until 2012, meaning sponsors could be free to exit in the event of a breakaway.

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