CAMS fights back in Melbourne melee

Today’s battle between CAMS and the Australian Grand Prix Corporation has shifted up a gear with a stern press release issued by CAMS. Key to their reply is the claim that their fee charged to the AGPC is “substantially less than the AUD$800,000 or £500,000 stated in some reports”.

According to the CAMS statement they are “acutely conscious of the need to reign in spending on Formula One events”. Further, it is claimed that CAMS and AGPC Executives had negotiated a satisfactory deal several months ago only to have that deal rejected by the AGPC Board.

“In August 2010 after months of negotiation CAMS and AGPC’s Chief Executives reached agreement on a proposal which was put to AGPC’s Board. However that proposal was rejected by AGPC’s Board,” reads the press release.

The CAMS statement continues, “Since that time AGPC’s Board has refused to negotiate further with CAMS and has summarily rejected two revised proposals put to it, despite CAMS and the FIA making it clear that the consequences of failing to appoint an organiser by 19 November will be that the 2011 Australian Grand Prix does not take place. The Victorian Government has been kept informed of developments.”

CAMS say the dispute is a matter of safety over budget and adds further context to the matter saying, “the cost to AGPC of CAMS’ services is less than 0.625% of the AGPC’s annual budget.”

“This is an issue about safety and not fees and we do not believe the Australian Formula One Grand Prix can be run safely without the high degree of professional and safety expertise that CAMS can deliver.”

Looks like we’ll need to watch this space over the next week. CAMS has also issued a separate statement to its members which can be read in full after the break.

[Pic: Mercedes GP Petronas]

MPORTANT LETTER TO CAMS MEMBERS AND ACCREDITED OFFICIALS

12 November 2010

Dear CAMS Colleague

You may have seen the media reports surrounding the current dispute between the Australian Grand Prix Corporation (AGPC) and CAMS.

It is important you understand the reasons behind the dispute.

CAMS has, over many years, performed a number of roles involving the AGP including acting as Sporting Organiser, issuing the Permit for the race and all the support races and activities, providing certain insurances for officials, applying for FIA calendar listing, ensuring compliance with FIA standards, authorising FIA track inspections and many other tasks. For this CAMS received a fee which was calculated to equate to the total costs CAMS incurred in its involvement with the AGP.

In August 2010 after months of negotiation CAMS’ and AGPC’s Chief Executives reached agreement on a proposal which was put to AGPC’s Board. However that proposal was rejected by AGPC’s Board.

Following this rejection, and without warning, AGPC demanded a significant cut to which CAMS responded with a further reduction. This was subsequently rejected by AGPC.

To put the current dispute in context, the cost to AGPC of CAMS’ services is less than 0.625% of the AGPC’s annual budget and the difference between CAMS’ proposal and AGPC’s position is less than 0.1% of AGPC’s annual budget.

For CAMS to deliver further reductions, it would have had to “subsidise” the AGP from other member activities or from members’ reserves. This it could not justify. Accordingly it refused to agree to what it believed to be an unreasonable demand and subsequently AGPC has decided to try to “go it alone”.

CAMS has invested extensively in developing and training its officials over many years and has produced one of the world’s best officiating teams for the Australian Grand Prix. You should be rightly proud of your achievements and the regard in which you are held internationally.

Officiating has provided thousands of CAMS members with unforgettable experiences – which in recent times have been extended to include the Singapore and Korea Grands Prix. These are the rewards of membership in an organisation where people work together with common purpose and a passion for the sport.

CAMS has been the organiser of the Australian Formula One Grand Prix since 1985 in Adelaide and since 1996 at Albert Park in Melbourne.

CAMS’ annual fee to organise the Australian Formula One Grand Prix is substantially less than the AUD$800,000 or £500,000 stated in some reports.

This is principally an issue about safety and not fees and we do not believe the Australian Formula One Grand Prix can be run safely without the high degree of professional and safety expertise that CAMS can deliver.

CAMS and the FIA have also received the advice of Senior Counsel that their actions in putting a fair proposal to the AGPC in no way contravene Australian competition law or are in any way inappropriate.

The FIA requires that a Grand Prix may only be organised in Australia if CAMS is prepared to sign an Organisation Agreement with the FIA. At CAMS request the FIA has extended the deadline for CAMS to confirm it will sign such an agreement until November 19. Under FIA rules, without CAMS agreement as ASN, the AGP will not be conducted.

The Victorian Government has been kept informed of developments.

Moving forward on this issue, CAMS greatly appreciates the solid support and dedication of our members and officials. CAMS is committed to resolving this issue with the AGPC and once again fielding a team of officials at the Formula 1 Australian Grand Prix that we can all be immensely proud of.

I am certain that you as a CAMS member do not wish to see member funds used to subsidise this event and I am equally sure that you do not want your Confederation to be bullied into an agreement which is not justifiable.

Yours sincerely

David Morgan