Formula One Group CEO Chase Carey appears to have shifted the F1 teams along to a point where many are positive that a new deal to replace the Concorde Agreement will be reached by as soon as next month, according to the Financial Times

Teams are in broad agreement about governance and of technical regulations, Norman Howell reported in the FT’s weekend edition. The most contentious areas in the talks are revenue share and the level of a budget cost cap.

The current iteration of the Concorde Agreement between Formula One Group, the F1 teams and the FIA (International Automobile Federation) date back to 2013. The first one was made in 1981.

For revenue share, about $35 million each is distributed among teams which have finished in the top 10 in the past two out of three seasons.

There is further distribution according to championship results, plus a series of bonuses awarded for different historical reasons. This means Ferrari, competing in F1 since the series began in 1950, is guaranteed to take in about $100 million, a year’s entire budget for a mid-ranking team.

Under Carey’s proposals, about 45 per cent of $1 billion will be distributed equally among teams and another 45 per cent awarded depending on results.

Ferrari’s special history-based payment will be 5 per and the remaining 5 per cent will go to the other “grandee” teams: McLaren, Red Bull, Williams and Mercedes.

A figure of $150 million has been widely mentioned for the budget cap. Six or seven of the l the 10 F1 teams would struggle to reach that spending level of now, while the others would be looking at a significant budget cut.

The biggest obstacle to a budget limit is that of monitoring expenditure. The FIA would have to do this but a cap would be very hard to control.

Christian Horner, Red Bull team principal, is quoted saying: “If a team overspends and wins the championship, it will take two to three years after the event for penalties to be imposed, and that does not sit too comfortably. I am not sure the FIA fully grasps how big a project this is.”

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The Qatari president of French soccer club Paris Saint-Germain, Nasser al-Khelaifi, is under formal investigation in France for alleged corruption related to Doha’s bid to host the athletics world championship, his lawyers said on yesterday.

Reuters reports:

French financial prosecutors are looking at a $3.5 million payment made in 2011 by Qatar-based company Oryx QSI to a sports marketing company run by Papa Massata Diack, son of the former IAAF President Lamine Diack, during the bidding process for the 2017 world championships.

They allege that Khelaifi approved the payment, according to the notice sent by the investigative judge to his lawyers, who denied he had any link to Oryx QSI at the time.

Several other sources said Khelaifi and a close associate were questioned by investigators in March “as a person of interest” in the investigation.

Qatar was unsuccessful in its bid to host the championships, which went to London. But Qatar did go on to secure the rights to hold the 2019 world championships to be held in October.

The move by an investigative judge is a demonstration of the broadening scope of France’s inquiry into a suspected web of corruption once rife in world athletics, including bribes to cover up athletes’ positive drug tests.

“The judge has made a mistake. Nasser has no involvement at all,” Khelaifi lawyer Renaud Semerdjian told Reuters. “His name does not appear in the entire procedural file.”

Semerdjian also questioned the competence of French prosecutors to delve into matters he said took place outside of France.

Khelaifi, 45, is deeply involved with sports and sporting events in Qatar. He serves as chairman of Qatar Sports Investments and the Qatar Tennis Federation, alongside his role as president of Paris Saint-Germain. He is also a minister without portfolio in the Qatari government.

The judge’s decision means Khelaifi is now formally treated as a suspect and takes the legal process one step closer to trial. Under French law, however, a suspect is not formally charged with a crime unless he is sent to trial.

French prosecutors this week recommended that Lamine Diack, the Senegalese former head of the IAAF, and his son stand trial for a host of suspected illicit practices, committed over a number of years with the active involvement of athletes and their federations.

They began their investigation into Diack in 2015, shortly after the IAAF’s ethics commission and the World Anti-Doping Authority (WADA) uncovered evidence that a Russian athlete paid a six-figure sum to cover up a positive test.

In the four years since, the French inquiry has widened to include the bidding process for the Rio de Janeiro and Tokyo Olympic Games, as well as the world athletics championships.

The investigative judges presiding over the Diack case accuse the Senegalese of favouring Qatar’s bid for the 2017 world championship in return for a kickback, sources have said.

The indictment handed to judges on Monday and seen by Reuters accuses Diack and his son, Papa Massata, of bribe-taking and money laundering.

France’s financial prosecutors allege that Pamodzi Sports Consulting, a company belonging to Papa Massata, received $3.5 million from Oryx QSI, just one of several multi-million dollar payments received by the Diacks.

A source familiar with the matter said Oryx QSI had undertaken to pay $32.5 million for the commercial rights to the 2017 championships of which $3.5 million was paid upfront as a non-refundable deposit. The full amount was conditional on Qatar winning the bid, the source said.

London won the bid in November 2011, to host the 2017 world championships.

Khelaifi’s lawyers said he was the chairman of Qatar Sports Investments but in 2011 had nothing to do with Oryx QSI, which they said was a separate entity.

“Nasser al Khelaifi was neither a shareholder nor a director of Oryx in 2011. He was not directly or indirectly involved in Doha’s bid to host the 2017 world athletics championships,” Khelaifi’s lawyers said.

Oryx QSI could not immediately be reached for comment.

Nasser Khelaifi is also chairman of beIN Media Group, whose television network holds regional rights to many of the world’s top sporting events, including World Cup soccer.

He is currently under investigation in a separate case by Swiss prosecutors for providing “undue advantages” to soccer’s global governing body FIFA for broadcasting rights for the 2026 and 2030 World cup.

The IAAF told Reuters on Wednesday it had in 2016 introduced “wide ranging reforms right across the sport, including its decision-making and approval processes, overall governance at every level of the sport.”.

 

The ITTF World Table Tennis Championships in Budapest from April 21-28, 2019, generated massive audiences and social media buzz.

YouTube not only had the most views of the major social media outlets, but also generated the most impressions, ahead of Facebook, Twitter and Instagram.

But broadcast television coverage produced the biggest audiences by far, as the video shows

Indeed, the cumulative audience on TV was far greater than social media views and impressions combined.

With China sweeping the gold medals, the table tennis event delivered the biggest sports viewing on CCTV so far this year.

With sports and innovation convention THE SPOT taking place in Lausanne next week, here is a timely  look at sports technology startups from SportsTechX, whose founder, Benjamin Penkert, will be a featured speaker in the conference sessions at the SwissTech Convention Center.

This update focuses on the startup picture in North America.

SportsTechX research shows the sports tech areas with the most startups  are focused on innovation for organisations, coaching and content.

However, the largest amount of startup funding is going into wearables and equipment.

See all the details in this video.

The Formula E season reaches its 10^th round with the Berlin ePrix at Tempelhof Airport this weekend.

iSportconnect interviewed Adam Kemp, Formula E’s Senior Manager, Broadcast and Distribution, about the importance of technology and innovation for the series.

One of the big innovations this season is Ghost Racing, which enables fans to take a virtual seat in the racing and go head to head in real time, against real Formula E drivers.

The first-of-its-kind game same mirrors the speed, positioning and movement of the drivers out on track in-game, using timing data, hyper-realistic scenery and a cutting-edge physics engine for an exceptionally authentic racing experience.

Artificial Intelligence (AI) will offer real opportunities to personalize content, Adam said.

But any innovation has to benefit the fans. “Consumers are always at the heart of what we do,” he said.

Enjoy seeing what he has to say.

The 2022 World Cup in Qatar will be held with 32 participating teams and not an expanded 48 teams, organizers FIFA said yesterday.

FIFA President Gianni Infantino had proposed expanding the tournament and explored the idea of adding additional host nations.

Reuters reports:

But the sport’s world ruling body said in statement: “Following a thorough and comprehensive consultation process with the involvement of all the relevant stakeholders, it was concluded that under the current circumstances such a proposal could not be made now.”

FIFA and Qatar also looked at whether the Gulf state could host an expanded tournament alone by changing the normal requirements for facilities.

“A joint analysis, in this respect, concluded that due to the advanced stage of preparations and the need for a detailed assessment of the potential logistical impact on the host country, more time would be required and a decision could not be taken before the deadline of June,” FIFA said.

“It was therefore decided not to further pursue this option.”

Infantino began to back away from the idea in March when after a FIFA Council meeting in Miami he said: “If it happens — fantastic. If it doesn’t happen — fantastic also”.

Qatar World Cup organizers said they had always been open to an expanded tournament if a “viable operating model” had been found.

“A joint analysis concluded that due to the advanced stage of preparations and the need for a detailed assessment of the potential logistical impact on Qatar, more time would be required and a decision could not be taken before the deadline of June. It was therefore decided not to further pursue this option,” they said in a statement.

“With just three and a half years to go until kick off, Qatar remains as committed as ever to ensuring the 32-team FIFA World Cup in 2022 is one of the best tournaments ever and one that makes the entire Arab world proud.”

The 2026 World Cup, to be held in the United States, Canada and Mexico, is scheduled to feature 48 teams and given the large number of stadiums available is unlikely to face any logistical problems.

The obstacles to a 48-team tournament in Qatar were numerous and some of the natural partners for joint-hosting in the Gulf were ruled out due to a deep political and economic rift in the region.

The United Arab Emirates, Saudi Arabia, Bahrain and non-Gulf state Egypt cut political, trade and transport ties with Qatar in June, 2017. Those countries accuse Qatar of supporting terrorism, which it denies.

FIFA’s study said the blockade would need to be lifted before there was any chance of those countries hosting matches.

Olympic swimming star Katinka Hosszu is fired up about the launch of the new International Swimming League pro series this year,

Hungarian triple gold medal winner in the Rio 2016 Games said swimmers have had enough of the sport appearing on the global stage just once every four years at the Olympics and believes the time is right for a radical new approach.

Reuters reports:

“If we want to be professionals then we have to be professional,” said Hosszu, after arriving for her interview in a sponsored sports car, wearing a business suit.

Hosszu, 30, has put herself at the forefront of the ISL and its battle with the sport’s governing body FINA.

The ISL, backed by Ukrainian energy businessman Konstantin Grigorishin, will start in October and feature eight teams from Europe and the U.S with matches on both sides of the Atlantic.

The new league tried to hold an event last year in Turin but that was cancelled after FINA said it was “non-approved”.

Following legal action in December from ISL and a group of swimmers including Hosszu, FINA acknowledged in January that athletes were free to compete in events staged by independent organisers.

“It was very interesting how it unfolded, ISL never wanted to be aggressive with FINA, we don’t want to take FINA’s place, ISL wants to create something new, to be in a parallel universe with FINA and they didn’t allow ISL — they didn’t have the right to do that. But at the end of the day, they settled and ISL can start,” Hosszu said.

Hosszu, also owner of the ‘Team Iron’ squad, a role she is relishing.

“I am recruiting swimmers now, it is super-exciting because I am in the pool but I am also talking to swimmers, as a club owner,” she said.

Hosszu, nicknamed the ‘Iron Lady,’ said FINA had failed to develop the sport in a way that allowed swimmers to maximise their earning potential and branding opportunities.

“Before it was simply FINA decided and that was that. FINA was the one that had all the control and we just did what was available to us,” she said.

“We want to change the fact that we are only seen worldwide during the Olympics. We don’t only want to be looked at as swimmers without a personality just with a flag on the cap.

“Cap and goggles and where you are from – that is all you get. It can’t be that exciting to watch if you don’t know the person.

“That is what we are also really trying to do with ISL – create content, show behind the scenes, we are creating a season, it’s not just one race.”

The long-term aim, says Hosszu, is for swimming to have a constant presence that allows competitors to build global profiles similar to those enjoyed by other sports.

“The IOC (International Olympic Committee) probably wouldn’t like me saying this, but (the aim is) becoming such a professional league and generating so much money and viewership that the Olympics will be one of the swim meets, like for basketball and tennis. That’s my vision.”

With so much business to attend to, the question arises as to whether Hosszu can find the motivation to continue competing at the highest level.

She has no doubts.

“For me, the better I am in the pool, the louder my voice sounds and I can use that. For me it just gives so much motivation,” she said.

“Rio it was a very personal, goal of me breaking the world record and winning the golds and declaring that I am the best and showing myself that I did it.

“I want the sport to change. When I get out of the pool for good, I want to look back and say, that was really cool because changes happened because of me,” she said.

Not that she has retirement on her mind.

“I have a limited time in swimming but I am not saying that it is going to be Tokyo. I am already thinking about 2024,” she said.

Amid the business projects, legal cases and her own training, Hosszu has also had to deal with the split with American ex-husband and coach Shane Tusup.

“Going through a divorce is already hard. Going through it with a business partner and a coach where everything is built up, our work together, that is definitely tough and it was a hard time last year.” she said.

Hosszu has hired former Switzerland team coach Arpad Petrov.

“I feel better than before. It is true when they say that hard times make you tougher and that you can deal with anything that comes your way,” she said.

 

The first results of the new iSportconnect insights survey, powered by sports marketing agency Goodform, were unveiled yesterday at the CRM & Ticketing Masterclass in London.

Alexandra Kyrke-Smith, Goodform’s Head of Research and Insight, shared the results with Masterclass attendees ahead of her participation in an expert panel on Driving Engagement Through Data and Audience Understanding.

The insights Survey was created in response to an awareness that members of the iSportconnect community are looking for quality market intelligence about the trends driving the sports business.

In the first survey, we asked members to identify the top challenges facing the sports industry in 2019.

They replied by highlighting the following areas:

• Attracting and engaging younger audiences
• Financial sustainability
• Attracting sponsorship
• Integration of new technologies
• Declining TV audiences on linear platforms

The chose Formula E to head the list of growing sports.

They also said that the biggest event of 2019 will be the Rugby World Cup by a wide margin, ahead of the FIFA Women’s World Cup and the ICC Cricket World Cup in second and third place.

 

The insights Survey gives you the opportunity to have your say on some pressing topics. The insights will be collated and shared for everyone’s benefit.

The survey takes no longer than 5 minutes.

Participants in the Survey are eligible to win a prize of a £100 Amazon voucher as a reward to taking part.

We’re pleased to announce that the winner for participating in the first survey is Claire Furlong, who is General Manager, Strategic Communications at the International Cricket Council.

To obtain the full report, just take part in the new survey, focused on the key area of Data & Analytics, and join the insights panel by clicking here.