Cigarette advertising wars could impact European viewing.

Each packet of cigarettes states that smoking can seriously damage your health, but what they fail to inform you of is the fact that they can also seriously damage your Grand Prix motor racing viewing - especially if you happen to live in Europe, reports PanStadia International feature writer, Simon Waterman.

nter the golden leaf. Cigarette advertising and sponsorship has been the life-blood of Formula One motor racing ever since 1968, when Colin Chapman first introduced the ‘Players’ company to the possibility of worldwide publicity for its Gold Leaf Team Lotus cars. Three seasons later, the cars had transformed themselves into John Player Specials and they were racing against various Philip Morris, Marlboro-backed cars and drivers.

Thereafter, as the World Health Organisation closed more and more promotional avenues to the tobacco industry, their annual budgets for funding Grand Prix racing increased dramatically. Finally, growing opposition dictated that even this area should be targeted.

Despite this, the financial support forthcoming from today’s tobacco industry is still measured in billions, irrespective of currency, half the 2003 F1 grid line-up can testify to this, as it includes: Marlboro Ferrari; West McLaren-Mercedes; Mild Seven Renault; Lucky Strike BAR-Honda and Benson & Hedges Jordan, although ‘the writing is on the wall’ (or rather not) and cigarette brand logos can no longer be displayed at some of the EU circuits. 

However, the rules of engagement are changing and many eastern countries are considered important, emerging markets for tobacco products. As part of the equation is that they have relatively few health restrictions or swingeing tobacco taxation policies, it is not difficult to see why those in charge of F1 are demanding even more exposure in that part of the world. Unfortunately, this will be at the expense of the already well-established European Grand Prix venues, like those of Austria, Belgium and possibly even Great Britain. 

EU Versus the Rest of the World

Formula One’s rethink began in 1998, when the EU adopted legislation specifying the 1st October 2006 as the date for a complete ban on all tobacco advertising and sponsorship within Europe. As a result, F1’s ruling body, the FIA, duly advised teams with cigarette sponsorship not to enter into contracts extending beyond 2006. The World Motor Sports Council then similarly adopted a resolution supporting the ban. 

Although their 2006 date coincided with the implementation of the World Health Organisation’s proposed Framework for Tobacco Control, in October 2000 the European Court of Justice decided to annul the original Directive as legally flawed. Political agreement had been reached for the adoption of a new draft Directive with an implementation date of 31st July 2005 instead. Of course, the FIA had not been consulted beforehand and, in December 2001, expressed its concern that the earlier date would actually disrupt progress made towards the worldwide ban in 2006.
   

The Spa circuit, Belgium, the first victim of the cigarette advertising ban.

The Ardennes Offensive 

Despite all of these political machinations, Europe, as ever, seems unable to speak with one voice. This time the ‘villain of the peace’ is Belgium, whose parliament has taken it upon itself to outlaw all tobacco advertising from this August; over three years in advance of the original EU date! This has caused much disgust in the Spa-Francorchamps locality, which has subsequently had its 2003 Grand Prix cancelled. Yet, deputy head of Spa’s regional government, Serge Kuble, is hopeful that their GP could still go ahead, following a recent meeting to discuss the race’s future with Max Mosley and Bernie Ecclestone from the FIA. “Discussions centred around the possibility of organising a Formula One Grand Prix at Francorchamps in 2004, indeed in 2003,” stated Kuble. “As far as 2003 goes, the organisation of a F1 Grand Prix has not been completely ruled out, even if the chance is slim after the vote in parliament and all the delay.” 

Ecclestone, like the majority of F1 drivers and true race fans, has already stated that he would like Spa to return to the calendar in 2004. However, its return would be dependent on a reversal of the tobacco legislation that caused the race to be cancelled in the first place. The Belgian Grand Prix is a major source of income for the Spa-Francorchamps region, having hosted the race many times since 1924. The current 4.3-mile Spa circuit is one of the few remaining that still utilises stretches of public road and is generally regarded as one of the most challenging and exciting in the world today.

Prior to all of this, a group of local Belgian businessmen had actually taken legal action against the FIA in an attempt to have the race reinstated. They claimed the FIA had no right to interfere in what was, basically, a commercial dispute between the Belgian government and the F1 teams. However, a court in Verviers has since ruled that the FIA had every right to cancel the event and the latter’s spokesman added, “The FIA can put an event on the calendar, but to do so with no promoter and no competing teams would be futile.”

FIA looks to the East

Meantime, back in the real commercial world, FIA President, Max Moseley, has warned that further European Grand Prix’s will be have to be replaced by races in countries without tobacco restrictions. In effect, by choosing the earlier implementation date, the EU has forced cigarette-sponsored teams to seek events outside Europe, for part of 2005 and all of 2006, just so they can observe their existing contracts. Inevitably, new event organisers will have to seek long-term FIA contracts to offset their considerable financial outlay and lucrative tobacco advertising will no doubt continue to be welcomed. This could lead to cigarette-sponsored teams extending contracts that were due to expire in 2006 and the enforcement of a worldwide ban looking unlikely to take place at all. 

Yet it’s not only European races that are under threat. These problems could even affect the Australian GP, as this is a country with the strictest anti-tobacco legislation imaginable — unfortunately all geared to the later date of the proposed world ban. As Max Moseley recently stated in a letter to the European Union, “Hopefully the World Health Organisation’s Convention will be able to re-establish the level playing field that is now urgently needed worldwide.”

F1 & the Middle East

Bahrain is one country that has taken advantage of the current confusion and has been granted the right to hold a Grand Prix from 2004. Recently, its national parliament formally approved the funding for a new, $200m F1 circuit. The project, which will form part of a $500m resort development, has only been approved at the second time of asking, after Finance & National Economy Minister, Abdullah Said, stressed Bahrain’s need for future economic development. 
  

The project had been rejected on the grounds that it was not in keeping with Islamic values. Members of the Services Committee were seemingly under the impression that gambling and prostitution would follow Formula One onto the island (possibly one of them had just visited the Hungarian GP?). They also thought that younger residents might turn the streets of the capital city, Manama, into an unofficial racetrack! Though officially it still needs final ratification by the government-appointed Shura Council, Bahrain should stage the first F1 Grand Prix to be held on Arab soil since Stirling Moss won the 1958 Moroccan GP. 
  

Kimi Raikkonen, winner of the 2003 Malaysian GP — F1 bosses say Asia and the Middle East look full of promise.

This will be a considerable achievement for the small Gulf-state, as they had to overcome fierce opposition from Dubai, Egypt and the Lebanon before the FIA could grant them the privilege. There was even an Egyptian proposal that the Great Pyramids would overlook their planned circuit! 

Dubai has now decided to proceed with its own potential Grand Prix facility anyway and remains hopeful that their circuit could, at the very least, eventually provide an ideal venue for F1 off-season testing. However, as it has just been given an October 2003 completion date, their new ‘Autodrome’ could even feature on the intensive, winter testing schedules at the end of this current season. 

The Dubai Autodrome development is under the management of Union Properties, a local company that announced the project last April. A 5km circuit is being constructed to FIA-specification, on land donated by Dubai Crown Prince, Sheikh Mohammed bin Rashid al-Maktoum, and the facility is to include a hotel and, looking to attract both automotive and motor racing companies, a business park.

Unfortunately, with both Middle Eastern projects about to become reality, it must be with a feeling of trepidation, not to say disbelief, that the FIA have to sit back and see what unfolds with the hostilities taking place in the region, in addition to the re-building of Iraq, post-war. 

Asian Delight

As the search for new prospective markets and venues continues East, it comes as no surprise that the F1 establishment is now seeking a potential outlet on the Indian sub-continent. To this effect, German specialist architectural company, Tilke GmbH based in Aachen, has recently carried out an investigation and planning exercise on behalf of a British-based business consortium fronted by an Indian national, Sundar Mookhandani. 

Hermann Tilke himself, a highly respected circuit architect, led a four-man team that initially considered possible venues close to the cities of Bangalore, Chennai, Hyderabad and Mumbai. Eventually, they recommended an area near the southern city of Bangalore, situated inland 190-miles to the west of Madras, because of its more favourable topography and less brutal climate. Three possible locations were then short-listed, each one a 1,200-acre site within the Devanahali locality just outside Bangalore. Tilke already has well over two-dozen circuit designs in a portfolio that includes Malaysia’s state-of-the-art Sepang circuit, plus last year’s Hockenheim revamp. The business consortium is budgeting for the F1 circuit to cost nearly $150m, including an integral convention centre and five-star hotel facility.

Government officials are excited about the prospect of increased tourism in the region and the area’s minister for tourism has anticipated GP teams needing at least 3,300 local hotel rooms, with a further 6,500 being needed for race-goers! A golf course within the confines of the circuit grounds is also being considered. It would enable organisers to offer upmarket holidays that package the racing and golf as unique highlights. In fact, India is so determined not to miss out on the benefits of having its own GP, the government has committed to offering the development land at a 50% discount. 

Moving on to South East Asia, and the Chinese province of Shanghai, which is gearing up for its inaugural F1 event. China has finally reached agreement to host their own World Championship Grand Prix from 2004, after ongoing negotiations to hold a race ever since the late 1990s. Again, Tilke GmbH is involved with the design and the new circuit will be featured, in-depth, in a forthcoming issue of PanStadia International.

Land of the Rising Sun

In the very Far East however, all is not necessarily sweetness and light, certainly not now that Japan has two teams in F1. It is just possible that Toyota may be gearing up to mount a Fuji challenge to host a future Japanese Grand Prix!

With its German-based team now into a second season of Formula One, having become a regular contender for top ten grid positions, Toyota has decided it needs its own F1 showcase and test-circuit facility near to home. Of course its archrivals Honda, the other Japanese car manufacturer in F1, own and operate the superb Suzuka circuit complex — the current FIA-licensed home of the Japanese GP! So, with this in mind, the Toyota Motor Corporation has just purchased a majority share-holding in the Fuji International Speedway, situated some 40-miles from Yokohama, and have commissioned a complete circuit redesign from German specialist Tilke GmbH. Interestingly, the first-ever F1 Japanese Grand Prix was held there in 1976 when, despite all the rainstorms that Mount Fuji could typically throw at him, James Hunt finally clinched his memorable World Drivers Championship against Niki Lauda.

With a climate and skyline always dominated by the snow-capped, volcanic peak of Mount Fuji, the old distorted ‘D’-shaped circuit, that dates back to the early 1960s, will be closed from September 2003. Work will then begin on a new 2.83-mile main circuit that will be 150-yards longer than the present layout, though, with six left-hand and ten right-hand turns, the term ‘Speedway’ may be seen as an exaggeration! However, it will retain its famous 0.92-mile start-finish straight and should reopen after 18 months in April 2005. Unfortunately, a stadium-style, retractable roof seems to be out of the question.

Enter Switzerland!

Out of the blue, the future of Grand Prix motor racing in Europe has just received an unexpected boost — from the most unlikely of sources — the Swiss, who actually banned all motor sport almost 48 years ago! Their politicians are now pushing to lift the ban so they can once more apply to run the Swiss Grand Prix.

Maybe this sudden change of heart is not as strange as it sounds though. With its non-European Union status, Switzerland could offer to allow tobacco advertising after the appointed EU cut-off date of July 2005. It would therefore enable the tobacco-sponsored Formula 1 teams to run their cars in full cigarette-packet livery. But of course, they would first have to arrange to build a brand new F1-standard circuit, something they never managed to achieve in the past. Even then, they used to use public roads on the outskirts of Berne for their Grand Prix instead. This was before racing was banned in the country, as a result of the 1955 Le Mans 24-hour race tragedy, when a car crashed into a crowded grandstand killing over 80 spectators. The last Swiss GP was actually held in 1982, though it had to be run at Dijon in France. (Anyone seen Hermann Tilke?)

The Fight for the Future

Now further confusion lies ahead as the FIA tries to thwart the challenge posed by a rival, breakaway Grand Prix series, courtesy of those major car manufacturers already in F1. They are unhappy with the way F1 revenues are currently divided and have set up the ‘GPWC’ to investigate the feasibility of running their own series from 2008. This is the date the current ‘Concorde Agreement’ with the FIA expires. 

Luca Di Montezemelo, Chairman of Ferrari, recently summed it up from their viewpoint: “The car manufacturers are not prepared to fund the banks, they prefer to have ‘it’ (= the money) in their own pockets. Without us in 2008 the banks will own 100% of nothing.” As a result, Ecclestone is now considering regaining control of F1, by having his family trust company make a £1bn offer to buy it back from the three banks that hold a 75% interest in the sport. It would then be floated on the stock market, to give the teams a chance to own a slice of their sport — but such a deal as this would only happen if the teams were to commit to stay in F1 until at least 2015. As a further safeguard, Ecclestone is even rumoured to have looked at buying shares in F1’s oldest rival, the US-based CART (Championship Auto Racing Teams) Series, that still accepts money from the tobacco industry!

That, ladies and gentlemen, is where Formula One is today. Its hierarchy seems totally reliant on the marketing opportunities offered by the East, however they will have to work hard to ensure that European TV screens do not show vast new grandstands almost devoid of spectators — something that continues to happen at the Malaysian Grand Prix, year after year. So, watch this space...   

Special mention and thanks should go to www.f1i.com for very kindly supplying the imagery for this piece.

Below: Is the writing ‘on the car’ for future Formula 1 advertising?

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