Clause 1.1
In the Concorde Agreement, the teams recognise FIA’s exclusive property in the FIA
Formula One Championship, including in particular the trade marks, the right to the
titlethereof and responsibility for its organisation.
[1, 15]
Clause 2.1
Defines the term 'competitor'. One of the requirements is that the entry must have been accepted by FIA.
Clause 2.2
Defines an event as commencing at the scheduled time for scrutineering.
[15]
Clause 3
FOM agrees to pay to competitors the benefits for which Schedule 10 provides.
[15]
Clause 4
(d) The teams retain certain rights such as the right to produce and market their own
merchandise as well as computer games.
Clause 4.1
(b) defines FIA rights as all rights that are or become lawfully vested in and held by
or on behalf of FIA including all rights granted by the teams.
(d)(vii) The right to obtain sponsorship and advertising in respect of a particular team's
participation is reserved to that team.
Clause 4.2
(a) The teams grant to FIA on an exclusive basis the rights in, and ancillary to, their performance, the performance of
all cars, machines, equipment and persons connected to the teams (including the drivers).
(b) as well as the rights in the formula one events.
Clause 4.2 also appears to cover:
- the right of FOA to use images of the teams and cars in computer games,
- the right of FOA to use images of the teams and cars for promotional material (such as
photographs for posters, tickets, etc.)
Clause 4.10
The teams have no rights to the championship elements, i.e. to any film footage of the relevant events and any official
timing information, intellectual property rights,
trade names, logos or other indicia owned by or on behalf of and/or vested in FIA and/or FOA.
[1, 15]
Clause 5 contains a number of mutual undertakings.
Clause 5.2
Binds the teams to not participate in any other race, competition, exhibition or championship for open wheel single seat
cars other than formula one, or a race for cars complying with a current FIA Formula (for instance, Formula 3000).
Clause 5.3
The teams undertake to participate each year for the duration of the agreement.
Clause 5.3.1 refers to obligations that teams have.
I suspect this is the place for reference to competing in all events in the previous year except by 'force majeure'.
Clause 5.4 refers to the obligations of the FOA, including:
- must administer all the activities of F1 on a season-long basis.
- It must take all reasonable steps to maintain the value and prestige of F1 as a global sporting spectacle.
Clause 5.4(c)
FOA also undertakes to each team that it will enter into Grand Prix contracts with the promoters who are to host a formula
one Grand Prix during the term of the 1998 Concorde Agreement.
Clause 5.4(d)(ii)
FIA and FOA undertake to the formula one teams that the championship will be shown free to air where there are suitable
broadcasters prepared to do this.
Clause 5.5
FIA warrants that all FIA rights will be granted to FOA for exploitation in order to make payments to the teams as
provided by schedule 5 of the agreement.
Clause 5.6
The FIA is to ensure that the clauses of the agreement are respected.
[1, 3, 4]
Clause 6
... constitutes a body called the F1 Commission comprising some 25 members.
The F1 Commission has a Permanent Bureau responsible for dealing with matters which are so urgent that they
cannot await a meeting of the F1 Commission.
[15]
Clause 7.1
... dictates the rule-making process. This must include technical rules which must be agreed by the Technical Working
Group with 80% of the members in favour of the new rulers. The rules must them be agreed by the F1 Commission.
[29]
Clause 7.5 (c) (II)
For the purpose of 7.5 (c), 'measures' means measures which:
- are designed to reduce the performance of the car, and
- cause the least prejudice to the competitors in the circumstances, and
- make changes to the aerodynamics in priority to changes to other parts of the car.
Clause 7.5 (d)
The World Motorsport Council shall consult the F1 Technical Working Group before forming an
opinion as to the performance of the cars or introducing any measures under this clause 7.5.
[6]
Clause 8 makes provision for technical regulations to be called Stable Regulations.
Clause 8.3
The FIA may...make changes relating to the engine, the transmission
and all associated components and devices, or anything influencing the
performances of any of these (such as the total fuel storage capacity
of the cars or the race distance provisions) and the minimum weight of
the cars, provided that such changes do not come into force before the
1st of January, or if later, the entry closing date following the date
of their official publication...provided that the unanimous agreement
is obtained of such of those competitors who at the time the changes
in question are proposed are signatories to (the Concorde), and are
currently competing and have been in the top 10 competitors in two out
of the previous three FIA F1 Championship seasons.
[11]
Clause 8.10
The FIA needs to announce the technical regulations for the 2008 world championship no later than 31 December 2005.
[10]
Clause 8.11
... contains an express acceptance by the parties of the FIA Regulations which may only be altered by unanimous
agreement and with effect from 1st January in any year.
[15]
Clause 10 deals with entries.
Clause 10.1
Only a constructor (defined in Schedule 3) may enter a car, unless clause 10.4 applies.
Clause 10.2
... is an undertaking to be bound by and to respect the terms of the Concorde Agreement.
Clause 10.3
... is an undertaking by a team to participate in each event.
... provides for payments by a competitor who fails to participate in an event "unless F1 Commission decide to cancel the requirement" to make such payment.
Clause 10.4
?
Clause 10.5
Each competitor is required to pay to FIA a fee for a superlicence for each car to cover the management fees of FIA.
Clause 10.6
Imposes a limit on the number of cars which may participate; priority is to be given to those who have participated in earlier years.
[13, 15]
Clause 11 provides for the calendar of events.
There are to be 17 events in each year.
[15]
Clause 11.2(a)
The FIA undertakes to enter a Grand Prix event on the FIA calendar only where
the promoters have entered into a Grand Prix Contract with FOA.
[1]
Clause 12
Provides for passes to be issued to each competitor free of charge entitling the holder
to gain access to those parts of the circuit not open to the public.
[15]
Clause 14
...that if one of signatory teams stops competing in the World Championship because of "insolvency" its rights will cease immediately.
[16]
"If any one of the Signatory Teams shall cease to be a constructor within the meaning of Schedule 3
hereto and/or to participate in the FIA FI Championship ("Cessation") its rights and obligations
hereunder....shall immediately terminate. For the avoidance of doubt if a Signatory Team fails to
participate in an Event, without prejudice to any other provision of this Agreement, its rights and
obligations hereunder shall continue unless such failure to participate was due to the insolvency of
the Signatory Team or as a result of the withdrawal of the Signatory Team from the remaining Events
of the relevant FIA F1 Championship. Notwithstanding that the provisions of this Clause 14 shall be
without prejudice to any of the accrued rights of the parties to this Agreement prior to or as a
result of such Cessation, any privileges enjoyed by the Signatory Teams prior to the Cessation which
are based on historic performance shall permanently cease immediately on such Cessation."
[15]
Clause 16
...contains a confidentiality clause.
[15]
Clause 17.1
...provides that Concorde is governed by English law.
Clause 17.2
...a severability clause.
Clause 17.3
"All disputes arising in connection with this present Agreement (other than a dispute falling
within the provisions for the settlement of disputes in the Sporting Code) shall be finally settled
under the Rules of Conciliation and Arbitration of the International Chamber of Commerce in force
at the date hereof by one or more arbitrators appointed in accordance with the said Rules.
It is agreed that if such arbitrator(s) shall consider that his (their) award may depend upon a
decision to be given in accordance with the Sporting Code the making of such award shall be
suspended until after the notification of such decision (which must be final and conclusive) to such
arbitrator(s). An award of the arbitrator(s) shall not be inconsistent with such decision aforesaid."
Clause 17.4
... any such arbitration should take place in Lausanne, Switzerland.
[15, 17]
Clause 19
...deals with the term, commencement and application of Concorde.
The current agreement runs from 1 January 1998 until 31 December 2007.
Clause 19.4
...enables the later adherence of constructors who apply for the purpose to FIA and if "FIA has confirmed its agreement
to them becoming a party (such agreement not to be unreasonably withheld) and provided that they do so within 30 days
of their entry to F1 being accepted".
[1, 15]
Clause 21
...is an entire agreement clause.
[15]
Clause 22
...contains provisions for assignment by FOM of its rights to enable a public flotation of shares of a company
called Formula One Holdings Ltd on an international stock exchange.
[15]
Schedule 3
Definition of Constructor
A constructor is defined as a person, whether or not incorporated, "who owns the intellectual property rights to the
rolling chassis it currently races.."
[15]
For the 2003 season, it was suggested by the FIA (but obviously not subsequently agreed to) that:
The teams are invited to agree unanimously to delete the provision in Schedule III to the Concorde Agreement which prevents
a constructor using a component (other than an engine or a gearbox) designed or manufactured by another constructor.
[12]
Schedule 4
The Grand Prix contracts between FOA and local promoters are drafted in accordance with the terms
of schedule 4 to the Concorde Agreement.
[1]
Schedule 4 part 5 defines the term 'half season'
This was referred to in the 1997 sporting regulations [18] but not the current 2005 regulations, so may not be
in the current Concorde Agreement.
Schedule 5 provides for payment to the teams:
Clause 5.5
FIA warrants that all FIA rights will be granted to FOA for exploitation in order to make
payments to the teams as provided by schedule 5 of the agreement.
Schedule 8 contains the FIA Sporting Regulations.
The current version is located at http://www.fia.com/resources/documents/1929919630__2005F1SportingRegulations_a.pdf
[15]
Schedule 9 provides for payments by a team (a fine) to promoters of an event in the case that they fail to participate in an event.
[15]
Schedule 10
FOM agrees to pay competitors benefits, as calculated in Schedule 10.
The amount of benefit is based:
- in part on the place that that Signatory Team achieved in F1 for the previous year and
- in part on the number of cars and events in which it has competed in the current year.
The money is paid quarterly.
Schedule 10 para 6 recognises that the benefits for which that schedule provides are assignable by a competitor if certain
conditions as set out therein are satisfied, one of which contemplates that the transferee would have been a competitor
in relation to the chassis or name transferred.
[15, 19]
The Contract Recognition Board.
Clauses 1-2
The members of the Contract Recognition Board who were to determine the question of conflicting contracts were to
be qualified lawyers of international standing, suitably experienced in the law of contract, and were to be appointed
by the president of the court of the ICC (International Chamber of Commerce).
Clause 4
The seat of arbitration (i.e. where it is to be heard, or where it is DEEMED to be heard).
By the terms of clause 4 of Schedule 11, the Contract Recognition Board was to meet for these purposes in Geneva.
Clause 6(I)
Defines what amounts to a contract with reference to the Contract Recognition Board.
Clause 7.9
The Board shall within three days from the last day of a Conflicting Contract Meeting issue a decision
(a ‘Decision’) stating which Contract is the prevailing Contract (a ‘Prevailing Contract’) which takes
precedence over any other Contract in respect of the same period or any overlapping period.
Without prejudice to Clauses 7.10 and 7.14, the Decision shall not deal with any other issue (other than costs).
Clause 7.11
In making its Decision the Board shall first determine the question as to whether under the proper law(s)
of the contract applicable to the Contracts concerned one or more of the said Contracts is null and void, has
been validly terminated in accordance with its terms, including a termination subject to the making of a payment
of compensation pursuant to and of an amount determined by the Contract (‘Compensation’), or has expired.
If the Board determines that one or more of the said Contracts is not null and void, has not been validly
terminated or has not expired, then, for the purposes of Clauses 7.12 and 7.13, such Contract or Contracts
shall be considered valid and in force.
Clause 7.12
If pursuant to Clause 7.11 above the Board shall determine that only one Contract is still valid and in force
then that Contract shall be the Prevailing Contract.
Clause 7.13
If pursuant to Clause 7.11 the Board shall determine that more than one Contract is still valid and in force then
irrespective of the dates of signature appearing on such Contracts or any formalities (other than Registration pursuant
to Clause 6.5) which may have been carried out in respect thereof or any other matter whatsoever, the Contract whose
date of Registration is the earliest shall be the Prevailing Contract regardless of any provision of any law.
[28]