The European Commission’s lengthy investigation into Formula 1 motor racing is thought to be close to an end, following a crucial move by the Fédération Internationale de l’Automobile, international motor sport’s governing body, to dissociate itself from its commercial involvement in the sport.

The federation is negotiating to lease Formula 1’s commercial rights to Slec, Bernie Ecclestone’s holding company in which the German television production company EM.TV recently bought a 50-per-cent stake. Slec will take a 100-year lease on the rights at a cost of about $360 million. A rival bid from a consortium of motor manufacturers is thought likely to be rejected because the federation wants control of the sport to remain independent of the manufacturers.

On the face of it, little will change in the commercial development of the sport, which has been in the hands of Ecclestone for many years. However, one competition law expert who is close to motor sport argued today that the strategy is likely to satisfy the commission’s criticisms because it will separate entirely the federation’s organisational and rule-making functions from the profits of the sport.

By selling the rights to Slec for a fixed amount, the federation will no longer be dependent on the profitability of Formula 1. This will remove a long-held suspicion in the industry – which formed one of the main themes of the commission’s statement of objections to the running of the sport – that the federation uses its regulatory power to hinder the development of rival motor sport series.

Several new series and events have been launched over the past year or so – evidence of a 'loosening of the reins' by the federation in anticipation of a withdrawal from its commercial function – according to one source. These include:

the recently-announced US Cart series’ plan to include two European dates, at purpose-built oval tracks in England and Germany, for the first time

the proposed Superstars international touring car series, backed by sports marketing agency Octagon, which is due to launch next year

the launch of the American Le Mans series

the revival of Italian and German touring car series (the Euro STC and Deutsche Touring Masters, respectively)

A senior FIA official today argued that it has never acted to deter rival series and that the emergence of these new series and events is typical of the ‘cyclical’ nature of motor sport, in which promoters attempt – often unsuccessfully – to ‘internationalise’ successful national formats.

However, he said that recent negotiations with the commission have been extremely positive, and suggested that the separation of the federation’s regulatory function from the sport’s commercial activities could even come to be seen as a model for the structure of other sports.

He said that he expects the case to be finally resolved in the next two months.

Cart’s 2001 race calendar will now include two European events in Germany and England. The series’ first European event will be on September 15 at Germany’s Lausitzring, which is to be renamed the ‘Eurospeedway Berlin Brandenburg.’ Then on September 22, England’s Rockingham Motor Speedway will host a race.

Following this recent expansion, Cart events will now take place in the USA, Germany, England, Australia, Brazil, Japan, and Mexico.