JULY 20, 2005
What does the Jordan Concorde signing mean?
The announcement that Jordan F1 has signed up with the Ferrari and Red Bull Racing for the revised Concorde Agreement means very little. If anything, in fact, it underlines the team's weakness at the moment. The only logical argument that we can think of is that by agreeing to the deal Jordan has some form of revenue guaranteed after the end of 2007, which might make it a more saleable entity. However, as the FIA-FOM-Ferrari deal currently extends to only three teams (six cars), it is not going to make a very interesting championship - we have recent evidence of the popularity of six-car races.
As the other seven Formula 1 teams seem to be remaining united for a better financial deal, it is unlikely that those who sign now will be getting as good a deal as those who hold out for more cash. And with seven teams holding out, there remains the option of a rival championship which could feature 14 better-funded cars. Obviously such a situation is not what anyone wants but as Formula One Management continues down its current path, hoping to divide and conquer rather than allow teams to bargain collectively, this possibility must remain open.
The fact that the FIA has made compromising noises about the rules does not ultimately mean that there will be a compromise.
Much will now depend on whether the remaining seven teams remain united, if one of the seven decides to jump ship the picture will change dramatically. However, the seven teams have seen in recent months that sticking together is a very strong force and are unlikely to give away that power, particularly as the revised Concorde Agreement appears to offer a very special deal to Ferrari.
In short we are back to where we were before the Indianapolis debacle.
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