[Intl-tobacco] Formula One and tobacco

[Robert Weissman]

From: "Clive Bates" <clive.bates@dial.pipex.com>


Dear friends

The motorised Maharajas of Formula One are threatening to renege on their
agreement with WHO to phase out tobacco sponsorship globally by 2006,
supposedly because the EU has decided it should happen in the EU by July
2005.  See BBC report....
http://news.bbc.co.uk/go/em/-/sport1/hi/motorsport/formula_one/2760339.stm

(This clip is pasted in at the bottom of this message.)

I thought it might be useful to summarise some of the phoney arguments used
by Max Mosley, President of the FIA:

+++++++

1. That their contracts require them to do things that make it
impossible to
comply with the law.  Rubbish!

Mosley says:

"We've now got the teams with contracts to 2006 and an EU ban from July
2005.  The only way they (the teams) can observe those contracts in 2006 is
to reduce the number of Grands Prix in the EU to a point where the tobacco
companies don't object."

They have been on notice that tobacco sponsorship bans are likely EU policy
since 1997.  The current round of contracts (Concorde Agreement) were
negotiated to come into effect in 2002. In March 1998 at the Melbourne Grand
Prix, Max Mosley was able to say:

"The FIA could bring in a world-wide ban on tobacco advertising/sponsorship
in the Formula One World Championship on expiry of the current Concorde
Agreement between the FIA and the teams in 2002. Such a ban, which could
take effect before the deadline set in the EC Directive, would apply to all
Formula One Grands Prix, including those held outside the European
Union. It
would therefore provide a powerful supplement to the EC Directive.

The idea that they wrote these multi-million dollar contracts knowing that
legislation was likely but without 'force majeur' clauses that take account
of legislative developments is laughable.  What if they had signed contracts
for 20 years?  Would the EU have to fit in around that too?  Errr... no.

+++++++

2. That the tobacco popshop ban causes F1 to move from Europe. Wrong!

The second great scam in all this, is the blurring of *team* sponsorship and
*event* sponsorship. Mosley says:

"We're only going to have six (races) in the EU by 2005, so you get rid of
two or three more of those and you are alright with the tobacco for 2006,".
The implication is that the great tobacco/F1 roadshow is going to move out
of Europe.

Actually, most tobacco money goes into *teams* and all those sponsored by
tobacco companies are based in Europe.  The idea that Ferrari / Marlboro,
BAR / Lucky Strike, McLaren / West, Renault / Mild 7 can just uproot and
move out of the EU is absurd - it is impossible to move teams, which are
often deeply embedded in specialised local automotive economies.  These
teams are all located in the European Union and will lose their tobacco
sponsorships by July 2005 (in fact by the end of 2004 because July 2005 is
in the middle of the Grand Prix season and they will not be able to change
title sponsor.)  How does that stop the rest of F1 going tobacco-free in
2006.

The gradual move of Grand Prix from the EU into 'emerging markets' in Asia,
Eastern Europe and the Middle East has strong commercial logic that is
little to do with tobacco and everything to do with TV audiences and global
branding. Most of the movement of events from Europe would happen anyway.

+++++++

3.  That global TV coverage will ensure the EU legislation will be 'a waste
of time'.  No!

According to the BBC..."Mosley said the EU ban was a waste of time, because
tobacco advertising would be beamed into Europe on television from the races
where tobacco advertising is allowed."

Well there are many flaws in this.  First, the ban on European team
sponsorships greatly reduces the tobacco visibility - even at events that
are tobacco-sponsored.  For example, Michael Schumacher will not be wearing
a Marlboro logo on the winner's rostrum when Ferrari takes the 2005 Chinese
Grand Prix sponsored by Marlboro.  Furthermore, the new team sponsors may
start to elbow tobacco companies out of event sponsorship outside the EU.

Second, the EU can actually adopt the same approach to 'incoming' TV
advertising that the UK has taken to internet advertising - it is an offence
to cause an advert to be published on the internet that can be accessed from
the UK, if the company has a business interest in the UK.  In this way,
Mosley, Ecclestone and the rest, would have to choose whether they want a
few non-EU events sponsored by tobacco companies, or European TV audiences.

++++++++

4.  It does not really need stating - but who do these people think they
are?  The FIA has never been trustworthy and voluntary measures don't
work -
it is a front organisation for the tobacco industry and always will be until
legislators stop it.  They want to link the move from the EU, which was
happening anyway, with the EU's policy on tobacco sponsorship because they
want to threaten public health policy in their own narrow greedy interests.
There's already been suggestions that the sponsorships should run until
2008 - it would be a surprise

This is why the FCTC needs a complete global ban on tobacco advertising and
sponsorship.


Clive
-------

Text of BBC article....


Formula One may make a U-turn on its plans to outlaw tobacco advertising in
2006, the sport's boss Max Mosley has admitted for the first time.
Mosley - the president of the sport's governing body, the FIA - blamed the
European Union's move to bring forward its ban on tobacco advertising by a
year to October 2005.

And he said that the decision could result in there being only a handful of
F1 Grands Prix in Europe in future.

Mosley has for some years promised that motorsport would introduce its own
tobacco advertising ban at the end of 2006.

Talk about shooting yourself in the foot, the EU has blown its legs off

He was backing the World Health Organisation's move for a worldwide ban to
be introduced in international law for that time.

But he said the EU's decision to bring forward its ban had undermined the
plans and thrown F1 back into the arms of the tobacco companies. Mosley said
introducing the earlier ban was counter-productive and an "incredible piece
of stupidity by the European Commission".

He added: "Instead of having a worldwide ban in 2006, which everyone had
accepted was going to happen, we're now virtually certain to see tobacco
sponsorship in F1 going on until all of us have lost interest.

"Talk about shooting yourself in the foot. They've blown their legs off."

Mosley said the EU ban could lead to pressure from teams for the FIA to
continue with tobacco because the teams' contracts run to the end of 2006.

The Austrian GP will be dropped after 2003

"We've now got the teams with contracts to 2006 and an EU ban from July
2005.

"... The only way they (the teams) can observe those contracts in 2006
is to
reduce the number of Grands Prix in the EU to a point where the tobacco
companies don't object."

The Belgian Grand Prix has been dropped this year and Austria will follow
next year.

China and Bahrain are scheduled to come in for 2004 with future races
possible in Turkey and Russia.
India, Egypt, Mexico and another race in the United States are also being
discussed as possible venues.

"We're only going to have six (races) in the EU by 2005, so you get rid of
two or three more of those and you are alright with the tobacco for 2006,"
said Mosley.
Mosley said the EU ban was a waste of time, because tobacco advertising
would be beamed into Europe on television from the races where tobacco
advertising is allowed.