27 . 11 . 97 | EN Official Journal of the European Communities C 361 /7 Notification of agreements relating to the FIA Formula One World Championship (Case No IV/36.638 — FIA/FOA) (97/C 361 /05 ) (Text with EEA relevance) 1 . On 5 September 1997 , pursuant to Article 4 of a number of Broadcasting Agreements and a number of Council Regulation No 17 (') the Federation Inter­ Promoters Contracts . nationale de l'Automobile (the FIA) and Formula One Administration Ltd (FOA) submitted to the Commission a number of agreements for the organization and operation of the FIA Formula One World Championship (the Championship) and for the exploitation of television 6 . The Concorde Agreement, agreed on 5 September rights . The parties wish to establish that the 1996 , runs for five years from 1 January 1997 . The arrangements under which FOA acquires the broad­ agreement is between the FIA, which organizes the casting rights for the Championship and markets them as Championship , and the signatory teams . The agreement a single event are compatible with Article 85 ( 1 ) or merit sets out the organization and running of the Cham­ exemption within the meaning of Article 85 ( 3 ). pionship and the voting structure for its control, by reference to other agreements , contracts , FIA rules, regulations and ruling bodies . As a condition of their 2 . The FIA is an international federation of 149 participation in the Championship , the signatory teams national automobile clubs, associations , touring clubs assign to the FIA on an exclusive basis any media rights and national federations for motoring and motor sport . they may have in relation to the Championship events Through its sports division and its affiliated national and recognize that the FIA has the right to appoint a sporting authorities (ASN), the FIA regards itself as the commercial rights holder for the exploitation of those world governing body for 4-wheel motor sport, rights , and that FOCA Administration Limited (now including Formula One . FOA (formerly called FOCA called FOA) is that entity. The FIA arranges for FOA to Administration Ltd) is a limited company, which is make agreements , the terms of which are annexed to the engaged in the promotion of Formula One motor sport . Concorde Agreement, between FOA and each Team, whether signatory of non-signatory . The Concorde Agreement sets out the allocation of the prize fund and television payment to be paid by FOA each year. Of the 3 . The notifying parties are the FIA and FOA . Also total amount payable in any year 50 % is to be divided relevant to the notified agreements are the parties to the equally among the signatory teams . The remaining 50 % various agreements — the teams which participate in the is divided among all competing teams as to 25 % Championship , the promoters , organizers , and the according to their performance in the Championship for broadcasters of the Championship . The teams fall into the preceding year, and as the remaining 25 % , two categories , the signatory teams and the according to their performance in all relevant years since non-signatory teams . The signatory teams are : Ferrari the Championship started in 1950 . Non signatory teams SpA, Prost Grand Prix SA, Jordan Grand Prix Limited, may become signatory teams only with the consent of all PP Sauber AG , Benetton Formula Limited, Minardi signatory teams . FOA as the commercial rights holder Team SpA and Arrows Grand Prix International enters into agreements with promoters for each event . Limited . The non-signatory teams are : Williams Grand FOA proposes to the FIA the calendar for the events in Prix Engineering Limited, McLaren International the Championship and the FIA is then responsible for Limited , Tyrrell Racing Organization Limited and finally determining the calendar . Stewart Grand Prix Limited . 4 . The Championship comprises 16 or 17 events held each year in different countries around the world , 7 . The Formula One Agreement is between the FIA including at present seven Member States of the and FOCA Administration Limited (now called FOA). It European Union . The Championship is broadcast in over is dated 19 December 1995 , took full effect on 1 January 200 countries worldwide . 1997 and is effective until 2010 . FOA acquires from the FIA for 14 years all commercial rights to the Cham­ pionship which the FIA has , including the right to exploit the sound and moving picture agrees to pay fees and 5 . The notified agreements consist of the following : other amounts to the FIA and all teams to reflect their the Concorde Agreement, the Formula One Agreement, contribution to the Championship . It confirms that FOA is authorized to enter into contracts , as principal, with promoters who wish to host an event . The arrangements o OJ 13 , 21 . 12 . 1962 , p . 204/62 . are said to be designed to provide separation between the C 361 / 8 PEN" Official Journal of the European Communities 27 . 11 . 97 FIA and FOA of the supervisory and commercial aspects the FIA and for ensuring the safety of competitions and of Formula One in order to avoid conflict or interest. spectators . Promoters assign any intellectual property The FIA is concerned to ensure that the Grand Prix rights they may have, including all broadcasting rights , races proceed fairly and with full regard to the safety to FOA . The conclusion of a contract does not neces­ regulations, whereas commercial matters are dealt with sarily ensure the event will appear on the Grand Prix under the agreements between FOA and promoters . calendar for any season during the term of the contract . It is claimed that, in order to avoid, confusion between 8 . The Broadcasting Agreements have been concluded Formula One and the American series called the 'Cart by FOA with 60 broadcasters worldwide . For each World Series', promoters undertake to ensure, during Grand Prix, FOA contracts with a broadcasting company the term of the agreement, that no race for open wheels in the host country to serve as host broadcaster, who is single seat cars equipped with engines with a capacity in responsible for the production of moving images of the excess of 1 000 cubic centimetres other than the event or Grand Prix and making its signal, the 'International a race in the FIA Formula 3000 International Cham­ Feed', available to non-host broadcasters transmitting the pionship will take place on the circuit where the Cham­ race in their territories . All events in each year's Cham­ pionship event is to take place, whether promoted by the pionship are sold as a package to each broadcaster. promoter or otherwise, without prior consent of the Broadcasters are obliged to broadcast every event in the Formula One Commission . The Formula One Championship . Some of the broadcasting agreements Commission is the body which rules on all matters provide for a discount of 33 % on the price paid by the concerning the Championship and in particular on any broadcaster if the broadcaster does not broadcast any changes to the regulations governing the Championship . 'open wheeler racing' other than Formula One . There are two categories of broadcasting agreements . For free­ 10 . On preliminary examination, the Commission access television, contracts are typically concluded with considers that the agreements affect the organization and one broadcaster in a territorially defined area and with televising of the Championship , and other motor sports . certain limited exclusivity granted . Typically, the In addition, the agreements have an effect on sponsors , agreements have a duration of between one and five promoters, circuit owners, organizers , broadcasters , years but several are for 10 years . Typically, the licence teams, advertisers and viewers and viewers in relation to grants rights to show live and/or on a delayed basis each the Championship , other auto motor sport and other main race fo each Grand Prix, in return for an annual major sporting events . The notified agreements fall fee . For pay-television , FOA has entered into pay-TV within the scope of Regulation No 17 . contracts covering 94 countries for the 'Supersignal', a service providing by FOA using state-of-the-art digital technology to produce six separate channels, showing 11 . The Commission invites interested third parties to different aspects of the race , on a pay-per-view basis . submit their observations on the FIA/FOA arrangements , The duration of the agreements is up to 11 years . and their operation in practice, including views on the relevant market(s) affected . In accordance with Article 9 . The Promoters Contracts are between FOA and 20 or Regulation No 17 , such observations will be around 20 promoters , who may be circuit owners or protected by professional secrecy . national motoring associations or any other commercial entity . These typically run for five years . The contracts Observations must reach the Commission no later than are substantially in the form agreed under the Concorde 30 days following the date of this publication . They may Agreement between the FIA and the signatory teams . be sent to the Commission by fax (32-2 ) 296 98 04 ) of by They set out the terms under which the promoters agree post quoting reference IV/36.638 FIA/FOA, to : to stage events, including adhering to various safety and technical regulations of the FIA and providing insurance cover . Promoters propose a sporting organizer for the European Commission, event they wish to promote and the sporting organizer Directorate-General for Competition (DG IV), has to enter into an organization agreement with the Directoraat C , FIA . The sporting organizer is typically the ASN and has Office 3 / 103 , responsibility for ensuring that the event is run in Avenue de Cortenberg/Kortenberglaan 150 , accordance with the Sporting Regulations laid down by B-1040 Brussels ..