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Ecclestone avoids split in F1

3/25/2012 8:43:34 PM

Sepang - The fight was over with a whimper and not the bang that was expected to blow a division in Formula One.

Bernie Ecclestone, the sport's chief executive, has formally announced that most of the 12 teams in the sport have put their names to a new Concorde Agreement, the commercial deal that binds them to CVC Capital Partners, F1's owners.

He chose the minutes leading up to the final practice session of the Malaysian Grand Prix to issue a statement on his official website to clear the air on the future of F1.

This was expected to be a torrid year in the lead up to the end of the present agreement, with teams pushing for a better offer than the current deal under which they get half of the money that flows into the sport.

CVC, a private equity company based in London, gets the other half.

But Ecclestone appears to have been able to forge deals with all the key players. Ferrari, Red Bull and McLaren, who were expected to be the most difficult to persuade, have signed.

'I am very pleased to announce that we have reached commercial agreements with the majority of the current teams, including Ferrari, McLaren and Red Bull,' Ecclestone's statement said.

At this stage, no one knows and no one is saying whether this is a capitulation or if Ecclestone and CVC have come up with a better offer against a background of unease over plans to float F1 on Singapore's stock exchange.

Key teams' principals, however, claimed that they were not interested in taking a shareholding in the F1 business if it was floated, even though it is known that Ferrari have been offered a stake.

Whatever the terms of the latest deal, a crucial area of uncertainty is on the verge of being removed and without the vitriol that was feared might split the paddock.

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