June 30, 1999. Copyright 1999. Graphic News. All rights reserved.

EU ATTACKS MOTOR SPORT DEALS
LONDON, June 30, Graphic News: A EUROPEAN COMMISSION inquiry has accused the organisers and promoters of motor racing of abusing their domination of the sport in setting lucrative commercial deals, according to a report seen by the Financial Times.
The two-year investigation concludes that Formula One boss Bernie Ecclestone, whose companies promote international motor racing, broke European Union competition law in obtaining exclusive long-term TV rights to the sport.
The sportÕs governing body, Federation Internationale de L'Automobile (FIA), had also acted in an anti-competitive way in acquiring the TV rights and so should not have assigned them to EcclestoneÕs companies. Commission ÒinsidersÓ are reported as saying the lucrative deals would have to be renegotiated if the initial findings of the investigation were confirmed.
A list of objections to international motor racingÕs commercial arrangements were sent on Tuesday to Formula One Administration and International Sportsworld Communications Ð two companies run by Ecclestone Ð as well as the FIA. Ecclestone and the FIA have until the autumn to put their defence and could request a formal hearing.
Formula One Administration issued a $1.4 billion 11-year bond in May backed by commercial and broadcasting rights to key international motor racing events.
/ENDS
Source: The Financial Times