FIA President Todt on Steering Motorsport Through the Pandemic

The Fédération Internationale de l’Automobile (FIA), a global governing body headquartered in Paris, holds a remarkably diverse mandate that stretches far beyond the glitz and glamour of Formula 1 or even the entirety of motorsport. Its extensive responsibilities encompass every facet of motoring, ranging from promoting safe touring practices and enhancing road safety initiatives to advising governments and regulating four-wheeled activities, whether for leisure, daily commuting, or competitive sport. This broad scope underscores the FIA’s pivotal role in shaping the future of global mobility.

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In a recent exclusive interview with RaceFans, Jean Todt, the 74-year-old President of the FIA, unveiled significant ongoing discussions with the Fédération Internationale de Motocyclisme (FIM), the analogous governing body for motorcycling. These talks aim to streamline their respective commissions and forge closer collaborative ties between the two-wheel and four-wheel disciplines. This strategic alliance highlights a shared vision for safety and development across all motorized sports.

“We are working very closely together,” Todt affirmed. “I extended an invitation to [FIM President] Jorge Viegas to join our high-level panel. Beyond fostering general collaboration, we are also actively developing an affordable, homologated helmet specifically designed to enhance mobility and safety for motorbike riders globally.” This initiative exemplifies the FIA’s practical approach to improving road safety for all users, not just those involved in competitive events.

The “High-Level Panel” Todt referenced is an influential FIA think-tank comprising over 150 distinguished figures from diverse professional backgrounds. This esteemed group serves as a crucial resource, offering expert advice and strategic guidance on a wide array of specialized topics. RaceFans had the privilege of reviewing the panel’s roster, which includes prominent personalities such as former Chilean President Michelle Bachelet, WHO Secretary-General Dr. Tedros Ghebreyesus, various high-ranking United Nations officials, International Olympic Committee (IOC) President Thomas Bach, and Christian Peugeot from the renowned automotive company. The caliber of these individuals underscores the FIA’s commitment to drawing on global expertise for its initiatives.

Jean Todt’s Presidential Legacy and Impending Departure

Jean Todt’s third and final term as FIA President is set to conclude in December 2021. This departure is mandated by strict regulations he himself championed after taking office: presidents are limited to a maximum of three terms and must be under 75 years of age. Todt’s tenure marks a distinguished chapter for the organization, following a remarkable career that saw him achieve unprecedented success as a world champion rally co-driver and a record-setting team boss for automotive giants like Peugeot (across rally, sports car, and rally raid) and Ferrari (in Formula 1).

Todt arrived in F1 with Ferrari in 1993

Initially, this timing seemed perfectly aligned to allow Todt to oversee the critical 2020-2021 transition period within Formula 1. This era marked a significant shift from the long-standing Bernie Ecclestone regime to the new commercial rights holder, Liberty Media, which had ambitious plans for a radical overhaul of F1’s sporting, technical, and commercial regulations, slated for introduction in the 2021 season. However, the unforeseen arrival of the COVID-19 pandemic dramatically altered these carefully laid plans.

One of the immediate and impactful decisions made by both the FIA and Formula 1 in response to the global health crisis was to postpone the anticipated “new era” regulations by a full year. This inevitable delay complicated the carefully constructed timeline for Todt’s final year. Consequently, an early and pertinent question raised during the interview was whether it would be prudent for Todt’s final mandate to be extended by 12 months. Such an extension, it was argued, could provide essential top-level stability and ensure a more orderly transition during an period of unprecedented uncertainty for motorsport.

While a more detailed account of his response and the intricacies of FIA-F1 cooperation has been reported elsewhere, it became evident that Todt would require considerable persuasion to remain in office, and certainly not for a full, unprecedented fourth mandate. The preference for stability, however, extends beyond Formula 1, as the entire global motorsport landscape remains largely on hold. Even with the optimistic prospect of events resuming later in the season, significant ground has been lost, and major transformative changes are still on the horizon. Beyond F1, the World Endurance Championship (WEC) is poised for radical alterations to its hypercar class, and the World Rallycross Championship is moving forward with its innovative Projekt E. These substantial undertakings present a formidable agenda for Todt’s eventual successor.

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COVID-19’s Enduring Impact and FIA’s Adaptations

WEC is planning a major rules shake-up

Todt readily conceded that the COVID-19 pandemic has undeniably forced significant changes upon the FIA. However, there is a strong sense that many of these adjustments were already nascent or inevitable, and the crisis merely served to accelerate their implementation. “We will reduce travelling, for obvious reasons, but this isn’t unique to us,” he explained. “The widespread adoption of Zoom video conferencing and similar tools has proven to be incredibly efficient and represents a clear learning curve for our organization.” This shift towards digital collaboration is likely to have lasting implications for how the FIA conducts its global operations.

Furthermore, Todt highlighted a new, far-reaching partnership between the FIA and the International Red Cross, an alliance that extends well beyond the immediate crisis. “They will serve as our partners in assisting individuals participating in motor racing in the future,” he elaborated, detailing how the head of the FIA’s medical department is actively engaged in discussions with the Red Cross. “We are also initiating comprehensive programs designed to support our member countries,” he added, emphasizing the FIA’s commitment to its global network during these challenging times.

As motorsport categories cautiously anticipate a return to action—with prevailing wisdom pointing towards an early July restart for most series—the prospect of heavily congested calendars looms large. Organizers will undoubtedly strive to pack a maximum number of events into the truncated remainder of their seasons. This raises a critical question: will such a condensed schedule inevitably lead to unwelcome “cannibalization” of events and championships, with different series competing for eyeballs and resources?

“We will much more readily accept an overlap [of events],” Todt acknowledged, signaling a clear shift towards greater flexibility within the FIA’s sporting department. He framed this adaptability as a positive reflection of the motorsport community’s spirit: “In a way, it’s a good way of demonstrating the motoring spirit, and to help each other. We must assist promoters; we must collaborate closely with our championships and national promoters. Because when you are in dire straits, that’s precisely when you can truly make a difference.” This ethos of mutual support is crucial for the survival and recovery of the sport.

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Financial Resilience and F1’s Budget Cap Battle

The COVID-19 pandemic has wreaked havoc on businesses worldwide, prompting an obvious concern about the FIA’s financial health, particularly since its income is largely derived from member clubs (funded by their individual members) and licensing fees for drivers and teams. A decade ago, prior to Todt’s presidency, the organization was rumored to be financially strained. This historical context makes the “$200 million question” of whether the FIA can weather the COVID-19 storm all the more pertinent.

Some teams resisted budget cap reductions

“We operate as a non-profit organization, and fortunately, we possess stable finances,” Todt reassured. “In all our strategic planning, we have consistently maintained reserves, which are now enabling us to navigate through such an unprecedented crisis. Even though we could not have predicted this specific crisis, we recognized the paramount importance of having robust reserves for the future.” This foresight has clearly been instrumental in safeguarding the FIA’s financial stability.

A significant achievement for the FIA in 2019 was successfully convincing the three dominant Formula 1 teams to agree to an annual budget cap of $175 million (with certain exceptions), set to take effect from 2021. However, the economic fallout from the pandemic immediately created immense pressure to further reduce this cap. At the time of writing, a revised, multi-year “glide path” for budget reductions — proposing $145 million for 2021, $135 million for 2022, and $130 million for 2023 — was awaiting a crucial team vote.

Todt remained circumspect when pressed on the likelihood of this proposal’s success. “I cannot delve into specific details because it is currently a work-in-progress,” he stated, adding, “But it’s a question of days.” He also revealed a critical procedural change: “We also introduced an emergency article into our statutes, specifically the International Sporting Code, to enable the adaptation of new rules with a 60% majority.” This modification is highly significant, as it previously required unanimity for changes implemented less than 12 months in advance, a requirement that frequently stalled progress. This new measure clearly underscores Todt’s resolute determination to challenge the traditional stranglehold and power wielded by the major teams.

“Clearly, this pandemic has reinforced our desire, our energy, to make more drastic decisions for the future,” Todt asserted, “in a way to resist even more the resistance which was occurring for certain teams.” This statement was an unmistakably pointed criticism directed at the powerful triumvirate of Ferrari, Mercedes, and Red Bull, who had collectively opposed the proposed swingeing cuts.

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The Concorde Agreement: A Complex Future for F1 Governance

Before the onset of the crisis, a top priority on Formula 1’s agenda was the formalization of the 2020-2025 Concorde Agreement. This pivotal document outlines the obligations and responsibilities of Liberty Media, as the commercial rights holder, the participating teams, and the overarching governance processes of the sport. The historical evolution of this agreement is as intricate and convoluted as the Parisian square after which it is symbolically named. Initially, it functioned as a bilateral agreement between the FIA and the teams. Subsequently, it evolved into a tripartite arrangement involving the FIA, F1 management, and the teams, before reverting to a bilateral format solely between F1 management and the teams for the 2013-2020 period.

A distinct, yet equally crucial, document known as the Concorde Implementation Agreement governs the ongoing working relationship between the FIA and F1 management. This agreement was also set to expire at the close of 2020, and there was a prevailing expectation that the FIA would regain its full tripartite signatory status in the new iteration. However, during a recent investor call, Liberty Media/F1 CEO Chase Carey announced that discussions regarding the Concorde Agreement had been intentionally placed “on the back burner.”

Carey has said Concorde Agreement discussions are on hold

“We were in the final stages of completing the Concorde Agreement when the coronavirus crisis turned everything on its head,” Carey explained. “We made the strategic decision to temporarily defer the Concorde discussions and prioritize addressing the immediate issues related to the 2020 season first. As we progress with establishing the 2020 calendar and finalize regulatory adjustments with the teams, we will certainly revisit and complete the Concorde Agreement in the future.”

This postponement naturally leads to a critical query: How has the current situation impacted progress from the FIA’s perspective? Todt’s response was direct and pragmatic. “You don’t necessarily need to sign the Concorde Agreement,” he stated matter-of-factly, pointing out that, “We did not sign the Concorde Agreement at the last renewal. It is solely an agreement between FOM [Formula One Management] and the teams. We do not hold any direct agreement with the teams. The agreement binding the teams is with FOM, and as you have observed, we are currently under no specific governance framework to implement the regulations beyond 2020,” he clarified, referencing the recent change to the International Sporting Code regulations.

When pressed on the exact structure (bilateral or tripartite) of the forthcoming agreement, Todt stated, “Nothing has been decided on that.” However, he remained adamant that the agreement itself would not be delayed indefinitely due to COVID-19 and that its fundamental clauses would not undergo material changes. This suggests the FIA is prepared to operate within its existing powers while the commercial aspects of the sport are resolved between Liberty Media and the teams.

Threat of Team Exodus and the Path Forward

While Jean Todt expresses confidence in the FIA’s secure future, the same cannot be asserted for a number of Formula 1 teams. Indeed, in a recent edition of AUTO, the FIA’s official in-house magazine, Todt voiced profound concern, stating, “I do not believe that the priority for a manufacturer right now is to secure continuity in motor racing. I am certain that some teams, suppliers, and manufacturers may be compelled to review their programs. I sincerely hope that team owners and sponsors will maintain their motivation. We must encourage them to feel they still derive enjoyment and perceive a necessity for their involvement. On this front, we bear a significant responsibility; that is why we must actively listen to everyone.”

Manufacturers quit F1 in a hurry after 2008 crisis

I presented to him the critical point that current agreements legally commit F1 teams only until the end of 2020. This precarious situation raises the unsettling possibility that the COVID-19 crisis could trigger an exodus of manufacturers, mirroring what transpired during the 2008/2009 global economic downturn. In that period, major players like Honda, BMW, Renault, and Toyota all withdrew from Formula 1 when confronted with the terms of the 2010-2012 agreement, coincidentally just before Todt assumed office.

“We recognize that there is a risk, a very real risk, that teams may decide to depart,” Todt conceded. “That is precisely why we are diligently working to craft the most attractive package possible, one designed to retain not only the smaller teams but also the large and medium-sized competitors. It is undeniably a challenging exercise.”

When asked directly if he was concerned that certain manufacturer teams might ultimately decline to sign the new agreements, Todt reiterated his perspective. “As I stated, to successfully run a championship, we (the FIA) do not require this specific agreement to be signed. Furthermore, even if the agreement is signed, it’s not the existence or absence of a signature that ultimately determines whether teams choose to leave or stay. These are two entirely distinct and separate considerations. We are fully aware of the risk that teams might opt to withdraw. Therefore, our paramount focus is on creating the optimal package that encourages all teams—small, medium, and large—to remain committed. This is by no means an easy task.”

Surely then, the logical solution must involve establishing robust mechanisms to attract incoming teams, whether to Formula 1 or other series under the FIA’s umbrella? “We must remain optimistic,” Todt responded with a resolute smile. “We must foster a positive outlook. And it is also incumbent upon us to generate genuine interest. We have diligently strived to create what we believe will be the most exciting post-2020 Formula One Championship. Due to the prevailing circumstances, we collectively agreed to postpone the implementation of what we consider to be very beneficial regulations until 2022. For me, this was a rational, logical decision, and it received universal support. The future, despite current challenges, looks promising.”

Personal Reflections and a Lasting Legacy

Finally, shifting to a more personal note, how does Jean Todt envision his work rate changing in the post-COVID era, especially considering the notoriously punishing travel schedules he maintained, which often eclipsed those of Formula 1 drivers, perhaps even all of them combined?

Fans will have to stay way from races for the time being

“You know, I will be very honest, I have finally become somewhat lazier!” he chuckled. “I am fortunate to be in a comfortable, pleasant place, which I have been enjoying immensely. And I would gladly stay here more, if not for the pressing global situation. My extensive travel is a direct consequence of my roles as President of the FIA and as the UN Secretary General’s Special Envoy for Road Safety. My responsibilities inherently demand this travel. I am a deeply committed individual; I undertake these duties more out of commitment than for sheer enjoyment.”

This brings the discussion neatly to the critical topic of road safety in the context of the current crisis. While media outlets continuously report on the horrific death tolls attributed to the pathogen, it is sobering to consider that the average year-to-date global mortality rate of approximately 2,000 deaths per day from COVID-19 is still roughly 50% of the daily road accident rate, which is estimated at a staggering 3,800 deaths worldwide. Does Todt believe that the pandemic will result in a renewed focus on the sanctity of life and, consequently, on improving road safety?

“Of course, I am not seeking to draw direct comparisons,” he stated sympathetically, “but it is a fact that road deaths have demonstrably fallen in line with the restrictions imposed during this terrible crisis. What has become unequivocally clear is that, with the right prescriptions and collective will, actions that previously seemed impossible to achieve can indeed be realized.”

However, Todt expressed a degree of skepticism regarding the long-term environmental impacts. “Nobody could have predicted that the world would be almost free from traffic jams and pollution for a sustained period,” he noted. “On one hand, people have undoubtedly realized the profound importance of freedom, and I sincerely hope they retain that memory.” Yet, he tempered this optimism: “But I must confess, I am also skeptical about how long some of these environmental improvements will last. Already, it seems apparent that people will likely be hesitant to use public transportation, which will probably lead them back to taking their private vehicles, once again creating congestion and increasing pollution.”

Finally, as his term draws to a close – whether at the end of 2021 or a potential extension into 2022 – what legacy would Jean Todt, the only individual in history to lead world championship-winning teams across rally, cross-country, endurance racing, and Formula 1, aspire to leave for the global motorsport community?

“Not an easy question!” he smiled. “Honestly, my foremost desire is to make motorsport as safe as possible. As safe as possible, and equally important, as widespread and accessible as possible. We have successfully implemented development ‘pyramids’ in single-seater racing, and we are determined to replicate this structure in rallying. Our ambition is to cultivate a strong and inherently safe motorsport culture, nurtured from its grassroots origins all the way to its absolute pinnacle.”

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