Andretti’s rejected F1 bid escalates with US House Judiciary Committee probe

Mario Andretti in Washington

Claiming F1’s reason for rejecting Andretti was “all about money”, the chairman of the United State’s House Judiciary Committee has launched an investigation into F1 and Liberty Media as he seeks answers.

Last year, despite the FIA approving Andretti-Cadillac’s bid to become Formula 1’s 11th team, the sport’s bosses rejected the American team.

‘The excuses put forward appear to be pretextual, arbitrary, and unrelated’

Citing a combination of doubts over the competitiveness of the Andretti bid and whether the American team would “bring value” to the sport, F1 also pointed out that Andretti would need to rely on an existing F1 engine manufacturer being forced into a supply deal until such a time General Motors were ready with their own engine.

That decision has been opposed by Andretti team owner, Michael Andretti, who continues to push forward with his Formula 1 plans with the support of his father and 1978 F1 World Champion Mario Andretti.

Now the chairman of the US House of Representatives Judiciary Committee, Republican Jim Jordan, is backing Andretti and has launched an investigation to be held no later than May 21st.

In a letter sent to Liberty Media president and CEO Greg Maffei and F1 CEO Stefano Domenicali, he requested documents and communications relating to F1’s decision.

In the letter, seen by NBC, Jordan wrote: “The Committee on the Judiciary is responsible for examining the sufficiency of federal competition laws to protect against monopolies and other unfair restraints on trade.

“Sports leagues, like Formula 1, operate in a notable area of antitrust law in which some degree of collusion is necessary for the creation of the product.

“However, when a sports league deviates from its rules and practices in a manner that reduces competition and depresses consumer interest in the product, the collusion may amount to anti-competitive conduct.

“According we write to request request information about Formula One’s decision to block the partnership of Andretti Global and General Motors.

“The excuses put forward for denying Andretti Cadillac’s entry appear to be pretextual, arbitrary, and unrelated to Andretti Cadillac’s suitability to compete in Formula 1.

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“For example, Formula 1 alleged that a new team could only add value to Formula 1 by ‘competing for podiums and race wins.’

“However, the FIA had already analysed—and approved of—the technical capabilities of Andretti Cadilac to compete among current teams, and most current teams in Formula 1 do not meet Formula 1’s standard of regularly competing for ‘podiums and race wins’

“Formula 1 also faulted Andretti Cadillac for attempting to use an existing engine manufacturer because it could ‘be damaging to the prestige and standing of’ Formula 1.

“At the same time, however, Formula 1 stated that if Andretti Cadillac used a new engine manufactured by General Motors in the team’s first year, a new engine would create a challenge for the new team.

“Formula 1 cannot have it both ways. The truth, as FIA President Muhamed Ben Sulayem explained, is that the rejection of Andretti Cadillac is ‘all about money.’”

Jordan claimed Formula 1’s decision to deny Andretti had been made to protect “weak teams” in anti-competitive behaviour.

“Weak teams want to be protected from competition to the detriment of consumers and an additional team would compete for prize money and sponsorships,” he said.

“If Formula 1 must hinder competition and harm consumers to protect failing competitors, then the entire Formula 1 model may be broken and the entity cannot hide behind the necessity of a sports league to pursue anti-competitive conduct.

“Delaying Andretti Cadillac’s entry into Formula One for even one year will harm American consumers to benefit failing Formula One teams.

“Limiting the number of teams in Formula One will increase the price of sponsoring or buying into an existing Formula One team.

“As the Committee examines this matter and considers potential legislation around the structure and competition of sports leagues, we write to request a staff-level briefing on the decision to deny Andretti Cadillac’s application to join Formula One.”

Jordan’s investigation comes on the back of 12 US lawmakers accusing F1 of “cartel-type behaviour” by rejecting Andretti from joining the grid.