Formula One teams issue complaint to European Union over sport’s governance

Top teams Mercedes, Ferrari, McLaren, Williams and Red Bull receive special payments and sit with the commercial rights holder and governing FIA on the sport’s core decision-making “strategy group” – which this year includes Force India.

The move is believed to be aimed at several key issues, including that only the big teams have a say in F1’s Strategy Group and that the prize money structure is weighted heavily in favour of the front-running outfits.

Preferences is given to the five main teams.

It is a particularly volatile time overall in formula one, with Red Bull threatening to quit over engine supply, Lotus close to collapse and the tumultuous McLaren-Honda collaboration appearing on the verge of meltdown.

Force India deputy principal Bob Fernley confirmed separately to Reuters that his team and Swiss-based Sauber, two of the smallest competing against rivals with far greater resources, were involved.

Formula One faces a possible investigation by the European Union after both Force India and Sauber lodged official complaints into how the sport is governed. They also have a pending case against them by HMRC for tax avoidance.

Force India and Sauber have repeatedly aired frustrations with the revenue distribution in F1 as they struggle on a smaller budget than the larger teams, with this complaint formalising their grievances in an effort to force a potential change via the EU.

In 2014, Ferrari received a premium payment of $97million, $30million more than it received for finishing fourth in the constructors’ championship. “Due to the ongoing legal discussions, it would be inappropriate to comment further at this time”.

A few months ago, Labour MEP Anneliese Dodds wrote to European competition commissioner Margrethe Vestager. “This doesn’t just mean two fewer teams taking part in races throughout the season; it means hundreds of highly skilled people in my constituency losing their jobs and their livelihoods”.

If the European Union decides that the complaints are justified, then they can step in and force F1 to make the necessary changes. “I hope the complaint goes ahead and the competition authorities have enough patience and time to deal with it”, he said earlier in the year.