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Congressmen demand answers from F1 over Andretti

NEWS STORY
01/05/2024

A dozen members of the US Congress have written to Formula One asking why Andretti has been refused entry to the sport.

"Under the Concorde Agreement, Formula 1's governing document, up to 12 teams can participate," states the letter sent days before the Miami Grand Prix. "Currently, there are 10 teams competing in Formula 1 races.

"Previously the FIA Launched and led a comprehensive application process with the purpose of allowing one or more prospective teams to join Formula 1 racing series. Andretti Global, with its partner GM, submitted an application, and after receiving four applications, the FIA approved Andretti Global.

"Under what authority does FOM proceed to reject admission of Andretti Global? What is the rationale 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," it continues. "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 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?

"We continue to exercise oversight on this matter," the letter concluded, "and with the appropriate Federal regulators, to ensure that any potential violations of U.S. anticompetition law are expeditiously investigated and pursued."

Mario Andretti recently admitted that the gloves were off, telling AP, that "if they (F1) want blood, I'm ready".

"I was offended, actually," he said of F1's claim that his son's team "would not provide value to the championship" and would not be a "competitive participant".

"I don't think we deserved that, to be honest with you," he added. "It's a big investment in the series, and you'd think they'd welcome that. Even the value of the series is more valuable with eleven teams than ten, so I don't know. Tell us what is really wrong."

Taking to social media tonight, Andretti Global welcomed today's move.

"We are grateful to the bipartisan members of Congress for their support in challenging this anti-competitive behaviour," the team posted on X. "We remain committed to bringing the first US works team and power unit to F1 and to giving American fans a home team to root for.

"It is our hope that this can be resolved swiftly so that Andretti Cadillac can take its rightfully approved place on the grid in 2026."

Andretti is due to hold further talks with representatives of F1 at this weekend's race, however quite how the sport will react to the involvement of US Congress remains to be seen, with some fearing the latest move might merely strengthen FOM's resolve and that of the teams also objecting to an eleventh team.

Newey's next team, Guenther Steiner suing Haas, Andretti getting US Congress on the case... who needs racing?

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READERS COMMENTS

 

1. Posted by Tyrbiter, 03/05/2024 19:35

"@Team Hack Yes, I was thinking of the Michael Andretti and McLaren situation too. Getting in Ron's bad books was never a good idea and some people in F1 never forget."

Rating: Neutral (0)     Rate comment: Positive | NegativeReport this comment

2. Posted by LiamIII, 02/05/2024 21:43

"The current "administration" has shown it's willingness to weaponize the DOJ and would be more than happy to intrude into liberty's liberties. Don't underestimate their ability to extract "fees" or consummate back-door deals to pad their own pocketbooks. "

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3. Posted by Superbird70, 02/05/2024 20:17

"@ ChickenFarmerF1, thanks for the correction 2 weeks off then or we can add Puerto Rico, or Guam, or US Virgin Islands or District of Columbia."

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4. Posted by Chester, 02/05/2024 19:17

"Better watch out, Biden's inexperienced Federal Trade Commission (FTC) chairman, Lina Khan, will order an antitrust investigation. Then we can have all the USA political stooges weighing in on something they don't have the faintest idea of.

Can we trade you Joe Biden for Rishi Sunak or maybe lend us Liz Truss? "

Rating: Negative (-1)     Rate comment: Positive | NegativeReport this comment

5. Posted by flyinglap, 02/05/2024 18:26

"That was long overdue, and it may just be the defining move that will pave the way for an 11th and possibly even a 12th team. Liberty Media / FOM may well be keen to keep the current team owners happy in view of the next Concorde agreement, while lining their own pockets too, but they would be wise not to upset the US authorities and risk an exemplary "anti-competition" penalty and/or being sued by GM/Andretti eventually. Besides, their claiming that Andretti Cadillac would not be a "competitive participant" is just laughable. In fact, firstly there is the 107% rule that takes care of that, and secondly even if Andretti Cadillac were to be the least competitive team and dead last in the Championship standings the rest of the teams should only be too happy because only the fisrt 10 teams share in the revenue. Therefore, my guess is that the current teams are pretty sure that Andretti Cadillac would be quite competitive indeed; contrary to what they are publicly arguing."

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6. Posted by ChickenFarmerF1, 02/05/2024 17:43

"@Superbird70 - there are 50 states."

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7. Posted by Superbird70, 02/05/2024 17:05

"To appease congress Liberty will just add more races to the USA. St. Louis, Salt Lake City, Detroit, Bugtussle etc. It will all be good. 51states 51 races, with one weekend free.
"

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8. Posted by Team Hack, 02/05/2024 16:45

"I think this all goes back to how Michael Andretti 'blotted his copybook' with Mclaren during his short stint there. His reluctance to live in Europe and to commute from the USA did not sit well with Ron.

Mario has always been held in high regard as the legend he surely is by most people who know of him so he is not the problem.

We know also that GM is welcome to the party.


@Wokingchap
"What are you going to do now Mr.Domenicali ?"

That is an exceedingly good question which should provide us with hours of further fun & entertainment over the coming weeks.
The teams dished out very shabby treatment to Andretti when this all first arose and treated them as if they were something on their handmade loafers.
Now they will have to respond in one way or another.

I think the action by the US Congressmen from both sides of the aisle speaks volumes in contrast to the silence from EU investigators (who already set in place regs in 2001) and the lack of real power from the FIA despite BS's approval of the entry.
Stand by also for the US Justice's investigation into Liberty/Live Nation for alleged anti-competitive behaviour to liven up the show as well.
Even more fodder for DTS!"

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9. Posted by Wokingchap, 02/05/2024 13:23

"What are you going to do now Mr.Domenicali ?"

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10. Posted by BrightonCorgi, 02/05/2024 13:03

"Does Liberty really want the wrath of Congress? Tax audit?"

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11. Posted by Hobgoblin, 02/05/2024 12:49

"whilst I would love to see Andretti bring some more competition to the grid, and this intervention should have encouraged the re-evaluation of the decision, I feel that it may well do the opposite.
It comes across as justifying the argument from a sense of entitlement, and from an America-first standpoint. I can see the FOM railing against this - and the rebuttal coming in the form of "This is a global [?] racing series, not an American one".
Ultimately I think will do Andretti's case more harm than good."

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12. Posted by Burton, 02/05/2024 12:38

"Nothing a dozen campaign donations from John Malone can't fix..."

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13. Posted by Spindoctor, 02/05/2024 11:09

"Interesting move - maybe the USA will have more interest in sorting-out the monopolistic practices of FOM than the European equivalents..."

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14. Posted by Anthony, 02/05/2024 8:29

"I was lucky enough to see Mario racing in a number of different categories in the 60s and 70s and there are many arguments as to why the Andrettis should be allowed to enter F1. However, The Sherman Act is stated “to produce the best outcome for the American consumer “ and I’m not convinced that a global business such as FOM needs to be organised so as to focus on “American consumers “ rather than the global audience."

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15. Posted by kenji, 02/05/2024 2:17

"@ Celtic Tiger....like you I am rather exited to see this latest move by Andretti. With luck, applying the 'blowtorch to the Liberty belly' will yield a result for Andretti to be on the grid in '25/'26. IIRC Liberty/FOM some time ago rejected Andretti but encouraged GM to participate nonetheless! This leads me to think that there is a deep seated bias against Andretti in particular. If this can be proved then the US Congress will have grounds for a spirited legal challenge. Roll on...."

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