FIA: Ferrari agreement a legal tool used by many sports

Formula 1’s governing body suspected Ferrari’s engine was not always operating within the rules last year but lacked conclusive evidence, the FIA said on Thursday.

The FIA explained in a statement that it had therefore reached a private settlement to avoid lengthy litigation and an uncertain outcome.

The confidential settlement, announced last week on the last day of pre-season testing, angered non-Ferrari powered teams who issued a joint statement on Wednesday demanding clarity and threatening legal action.

The FIA gave more information to try and clarify the situation a day later.

“The extensive and thorough investigations undertaken during the 2019 season raised suspicions that the Scuderia Ferrari PU (power unit) could be considered as not operating within the limits of the FIA regulations at all times,” it said.

“The Scuderia Ferrari firmly opposed the suspicions and reiterated that its PU always operated in compliance with the regulations.

“The FIA was not fully satisfied but decided that further action would not necessarily result in a conclusive case due to the complexity of the matter and the material impossibility to provide the unequivocal evidence of a breach.”

The FIA said the confidentiality of the settlement agreement was provided for under the sport’s judicial and disciplinary rules.

Article 4 (VI) states that “the prosecuting body and all persons taking part in the inquiry are bound by an obligation of confidentiality vis‐à‐vis persons or organizations not concerned with the inquiry.”

The settlement itself was covered by article 4 (II) of the same regulations.

The FIA said it had acted accordingly “to avoid the negative consequences that a long litigation would entail especially in light of the uncertainty of the outcome of such litigations and in the best interest of the championship and of its stakeholders”.

It said the settlement with Ferrari was “effective and dissuasive”.

“This type of agreement is a legal tool recognized as an essential component of any disciplinary system and is used by many public authorities and other sport federations in the handling of disputes,” it said.

Seven teams, including champions Mercedes, expressed their surprise and shock and called for greater transparency. The FIA’s original statement contained little information.

“After months of investigations that were undertaken by the FIA only following queries raised by other teams, we strongly object to the FIA reaching a confidential settlement agreement with Ferrari to conclude this matter,” they said.

Ferrari’s engine was the subject of much speculation last year, with rivals suspecting the team were circumventing fuel flow sensors to gain performance.

Ferrari, overall runners-up last year with three race wins, had started the season as early favorites after impressive times in testing.

The performance appeared to tail off, however, after the FIA issued several technical directives concerning fuel flow sensors later in the year. They have also been slower than Mercedes on the 2020 testing timesheets.

Ferrari declined to comment.

Full FIA Statement:

“The FIA has conducted detailed technical analysis on the Scuderia Ferrari Power Unit as it is entitled to do for any competitor in the FIA Formula One World Championship.

“The extensive and thorough investigations undertaken during the 2019 season raised suspicions that the Scuderia Ferrari PU could be considered as not operating within the limits of the FIA regulations at all times.

“The Scuderia Ferrari firmly opposed the suspicions and reiterated that its PU always operated in compliance with the regulations. The FIA was not fully satisfied but decided that further action would not necessarily result in a conclusive case due to the complexity of the matter and the material impossibility to provide the unequivocal evidence of a breach.

“To avoid the negative consequences that a long litigation would entail especially in light of the uncertainty of the outcome of such litigations and in the best interest of the Championship and of its stakeholders, the FIA, in compliance with Article 4 (ii) of its Judicial and Disciplinary Rules (JDR), decided to enter into an effective and dissuasive settlement agreement with Ferrari to terminate the proceedings.”

“This type of agreement is a legal tool recognised as an essential component of any disciplinary system and is used by many public authorities and other sport federations in the handling of disputes.

“The confidentiality of the terms of the settlement agreement is provided for by Article 4 (vi) of the JDR.”