Hitech Grand Prix has reportedly taken legal action against the FIA following the rejection of its bid to join the prestigious racing series, with insider reports from British F1 journalist Joe Saward unveiling details of the ‘confidential’ settlement.
The FIA had invited new bids for a potential entry into Formula 1, among which Hitech GP and Andretti Cadillac emerged as prominent contenders. Ultimately, the FIA approved Andretti Cadillac’s bid for further consideration, citing commercial viability, while Hitech GP’s proposal was rejected. This rejection did not sit well with Hitech GP, spearheaded by Oliver Oakes, who believed their project was superior to Andretti’s.
Oakes and his backers were convinced that the FIA overstepped its bounds by rejecting their bid on financial grounds, prompting them to embark on a quiet but determined legal challenge. The legal action, kept under tight wraps, contested the FIA’s authority to interfere in commercial aspects of Formula 1 entries.
Saward has shared insights into the legal proceedings, stating in his latest Green Notebook, stating:
Mohammed Ben Sulayem, president of the FIA motorsport federation, prior to the 1st free practice session leading up to the F1 Grand Prix of Belgium at the Circuit de Spa-Francorchamps on August 26, 2022 in Spa, Belgium. FIA is reportedly in legal turmoil with Hitech GP.
REMKO DE WAAL/ANP via Getty Images
“Alpine’s new team principal Oliver Oakes will probably have a bumpy ride in the months ahead, but it will be useful experience. Whatever happens he will live happily ever after because the word is that his Hitech Grand Prix organisation is going to get a decent chunk of money from the FIA in the next few months. Hitech wanted to graduate into F1 and put in a bid at the same time as Andretti. Hitech was rejected by the FIA.
“Oakes and his backers felt that this was unfair as they believed they had a better project than Andretti. This led to quiet legal action, ostensibly because the FIA rejected the bid on the grounds of finance. Hitech, it is said, argued that as the FIA must not be involved in any commercial decisions relating to F1, it cannot do what it did. In order to stop another omelette falling from the sky on to FIA President Mohammed Ben Sulayem and his advisors, it was agreed that the matter would be settled using a confidential arbitration process so that Oakes could argue for money and no-one would know much about it.”
In the initial phase of arbitration, Hitech GP secured a victory regarding its legal costs, suggesting their case bore substantial credibility. The focus now shifts to the upcoming second stage, set for September 16th, where financial damages owed to Hitech will be assessed. As Saward noted:
“No-one wants to talk about this dispute but it is out there and I heard that the first phase has now been completed. The word is that Hitech has won a larger share of the legal costs involved, which suggests that the arbitrators thought his case was better than that of the FIA. There is now expected to be a second phase to assess the damages. This is expected to take place on September 16.
“Oakes won’t say a word and the FIA won’t even admit that the case exists. I guess that we will all have to look at the FIA accounts to see what it cost, although these have sometimes included large sums that were not explained. Given the ongoing mess with Andretti, one can say that the FIA President’s idea of opening up the entry process may not have been a good idea as it has caused nothing but pain.”
