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F1 breakaway threat averted

The threat of a breakaway Formula One series in 2008 has been dismissed after the five members of the Grand Prix Manufacturers Association signed a memorandum of understanding with F1 boss Bernie Ecclestone to remain in the sport through 2012.

"Today's MOU constitutes a comprehensive solution to the future of the sport," BMW's executive board member Burkhard Goeschel said, on behalf of the GPMA.

"We can build on this result and look forward to jointly grow F1 and make it an even bigger sporting spectacle than ever before."

The manufacturers - BMW, Mercedes, Honda, Toyota and Renault - were holding out for a bigger slice of the revenues from the sport. They were believed to be asking for 60 percent but reports say they accepted less than that in exchange for the money to be paid from 2006 onward rather than 2008, which is the start of the new deal.

"In anything there is always give-and-take, and you always look back on something and say, well..." said McLaren boss Ron Dennis. "The process of not moving forward was starting to hurt our entire business.

"Sponsors want to feel confident, we need to develop F1, we need to stabilise a whole range of issues that have moved out of the spotlight and moved out from under the microscope.

Dennis added that the agreement is merely a first step on the road which will shape the future of Formula One.

"This is a document that embraces the principles that relate to all issues, so it is an MOU that embraces the whole of the situation. But of course the FIA is extremely important into the formation of the Technical and Sporting Regulations, and at the end it is the starting point."

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