Fri. May 24th, 2024

House Judiciary chief launches investigation into Formula 1 over Andretti exclusion

By 37ci3 May7,2024

WASHINGTON – The chairman of the powerful House Judiciary Committee is launching an investigation into Formula 1 and its American owner Liberty Media. The decision to deny Andretti Global a place on the network.

In a letter obtained by NBC News, Rep. Jim Jordan, R-Ohio, accused the sport’s executives of “anti-competitive behavior” by rejecting an American racing team’s bid to enter F1 in 2025 or 2026.

The letter on Tuesday and addressed Liberty Media President and CEO Greg Maffei and Formula 1 Group President and CEO Stefano Domenicali.

“Delaying Andetti Cadillac’s entry into Formula 1 for even a year would hurt the American consumer’s interest in failing Formula 1 teams,” Jordan writes. “Restricting the number of teams in Formula 1 would increase the cost of sponsoring or purchasing an existing Formula 1 team. As the committee examines this issue and considers potential legislation related to the structure and competition of sports leagues, we are writing to request staff. Andretti Cadillac’s Formula 1- level briefing on the decision to reject his application to join the

Jordan is also requesting documents and communications from or between Andretti Global, the Formula 1 Group, Liberty Media and the 10 existing teams regarding the process of evaluating the entry of new teams into the sport. new team. He gives them until May 21 to respond.

The letter shows growing interest in Congress over the actions of F1, which has seen its popularity rise significantly in the US in recent years. Andretti’s decision to partner with Michigan-based GM to produce its own engines raises the domestic and economic stakes for the storied American team that competes in the sport.

The letter comes days after former Formula 1 world champion Mario Andretti. Visited Capitol Hill and spoke at a press conference with lawmakers to pressure the sport to accept Andretti Global.

“Chairman Jim Jordan met with Mario Andretti last week,” said a source familiar with the meeting. “Chairman Jim Jordan is a big Formula 1 fan and looks up to it Drive to survivelike many Americans.

Formula 1 and Liberty Media did not immediately comment. F1 rejected Andretti’s offer in January long statement it “did not believe that the applicant would be a competitive bidder.”

The Ohio Republican argued that F1’s actions fell within the jurisdiction of the Judiciary Committee because sports leagues, like it, “operate in a remarkable area of ​​antitrust law where some degree of collusion is necessary to create a product.”

“However, when a sports league deviates from its rules and practices in a way that reduces competition and diminishes consumer interest in the product, collusion may constitute anticompetitive conduct,” Jordan writes.

You can read the full letter below:

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By 37ci3

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