10/05/2024
NEWS STORY
Jim Jordan, the chairman of the United States House Judiciary Committee has written to Liberty Media demanding documents relating to the refusal to allow Andretti to enter F1.
The letter, which follows that of last week, when 12 members of Congress wrote to Liberty President, Greg Maffei expressing fears that antitrust laws have been violated, has been sent to Maffei and F1 CEO, Stefano Domenicali.
"The Committee on the Judiciary is responsible for examining the sufficiency of federal competition laws to protect against monopolies and other unfair restraints on trade," states the letter, a copy of which was sent to US broadcaster NBC by Republican Jordan.
"Sports leagues, like Formula 1, operate in a notable area of antitrust law in which some degree of collusion is necessary for the creation of the product," it continues.
"However, when a sports league deviates from its rules and practices in a manner that reduces competition and depresses consumer interest in the product, the collusion may amount to anti-competitive conduct."
Jordan says he is not satisfied with the reasons given by F1 for its refusal to accept Andretti into the sport before 2028, Formula One Management (FOM) having claimed that the team "would not provide value to the championship" and "would not be a "competitive participant". Indeed, he points out that there are currently a number of teams on the grid unable to compete for wins.
"The excuses put forward for denying Andretti Cadillac's entry appear to be pretextual, arbitrary, and unrelated to Andretti Cadillac's suitability to compete in Formula 1," he writes. "For example, Formula 1 alleged that a new team could only add value to Formula 1 by 'competing for podiums and race wins'. However, the FIA had already analysed - and approved of - the technical capabilities of Andretti Cadillac to compete among current teams, and most current teams in Formula 1 do not meet Formula 1's standard of regularly competing for 'podiums and race wins'.
"Formula 1 also faulted Andretti Cadillac for attempting to use an existing engine manufacturer because it could 'be damaging to the prestige and standing of' Formula 1. At the same time, however, Formula 1 stated that if Andretti Cadillac used a new engine manufactured by General Motors in the team's first year, a new engine would create a challenge for the new team.
"Formula 1 cannot have it both ways. The truth, as FIA President Mohamed Ben Sulayem explained, is that the rejection of Andretti Cadillac is 'all about money'."
"Weak teams want to be protected from competition to the detriment of consumers and an additional team would compete for prize money and sponsorships.
"If Formula 1 must hinder competition and harm consumers to protect failing competitors, then the entire Formula 1 model may be broken and the entity cannot hide behind the necessity of a sports league to pursue anti-competitive conduct.
"Delaying Andretti Cadillac's entry into Formula 1 for even one year will harm American consumers to benefit failing Formula 1 teams."
In addition to requesting data and documents relating to F1's review of Andretti's bid, Jordan, a two-time NCAA national champion wrestler and former college wrestling coach, is demanding all communications between F1 and the existing teams regarding prospective entries, as well as information relating to anti-dilution fees in terms of Concorde Agreement. He is demanding a response from F1 no later than 21 May.