What's in an F1 drivers contract

[pistonheadforum]

Hello,

Whilst it's unlikely Julian Jakobi will be a PH member and happy to dive into the details I'd be fascinated if anybody has any insight into what is typically included in a F1 drivers contract.

With Lewis and others saying that they are complicated and take some time I do wonder what is in them that's so detailed other than the typical negotiating tactic of waiting until the last minute before showing your hand or the size of the wheelbarrow you expect to fill with cash.

Any input for the PH massive who have some knowledge of these type of sports contracts and what's in them? If you are Julian Jakobi then so much the better. In particular any business structuring, contract clauses (riders), performance breaks in the contract (from both sides) or anything interesting and unique.

Thank in advance.

[pistonheadforum]

Thanks to those above - much apprecaited and very insightful.

I find it fascinating that the most complex part is not the driving but rather the ancillaries and I do (somewhat jokingly) wonder if the complicated parts are manufactured somewhat by the agents to keep them in gainful employement.

It's clear that with drivers already alligned to other sponsers it's very much an escallation of things they have already agreed to being able to continue when faced with other commitements. Negotatiing over who cleans the pool seems to just burn consultancy time for the agent!

Much easier back in the early years when the garagistas just sorted it out over a pint!

Thanks for taking the time to respone.

[pistonheadforum]

belleair302 said:

In the 70's a drivers contract would probably be somewhere around four to five pages mostly covering salary, medical, hospitality and travel. Few drivers had agents and many drove anything of the money was there across many disciplines.

The tobacco companies and the involvement of bigger salaries and more fly away races increased contract negotiations.

Many would regard the late Sir Stirling Moss as the first really professional driver and probably Ron Dennis as the most difficult team owner to negotiate with.

All teams today have in house legal departments and will then go to bigger law firms or specialists for the final drafts and then everybody signs.

Bernie was always very simple to discuss things with but they just carried a huge number at the bottom. He always delivered however and was always happy to talk, even if you could not agree.

Yes agents and families can muddy the waters but with patience and guidance from those with experience they soon appreciate the complexities of finding a good lawyer and a decent remuneration and performance packet.

Contracts for Grand Prix circuits and the insurance underwriting costs and contracts are hilarious reading.

Thanks for this - you sound particulary knowledgeable around this area and would be interested to hear of any particular examples (names/brands removed). Sounds like you could have an interesting book to write!

I do remember somebody who was involved in that area explaining the ridiculous riders about having a bowl of M&Ms in the green room with all the red ones removed as a particular part of a contract and this was less about them being divas and more about being able to arrive to the concert and with a quick check could guage how thorough the prep had been (not following that mean other things would likely be missed).

[pistonheadforum]

Teppic said:

Didn’t Mansell’s contract at one point stipulate how may Mars bars would be left for him in his hotel room?

Perhaps a variation on the M&Ms approach.

[pistonheadforum]

belleair302 said:

Peter Goodman a St Albans based solicitor could write a fascinating book about F1 contracts as he negotiated a great many and was very much involved with Senna and Williams plus Damon Hill, David Coulthard and a number of other drivers.

Julian Jakobi is more a manager than a lawyer and does represent drivers when discussing contracts but today is just one of many in this area of sports management and sponsorship consulting.

I guess this is the difference between manager and lawyer - one negotiates and the other makes it wriggle proof should it go to dispute.

[pistonheadforum]

What about performance breaks going against the team rather than the driver? How is that structured as I guess they could simply say the car is fine you are just not driving fast/carefully enough or the driver just sandbags round the track to escape the team next year.

[pistonheadforum]

AND LOOK AT THAT HE HAS UNLAPPED HIMSELF FROM SENNA!!!

[/Murray Walker]

Thread is back from the pits - let me ask a slightly different question.

You are a young up and coming driver (maybe Max from 4 years ago). You have talent but it could be extinguised if you get yourself into the wrong team and get pasted every week.

What would you want your contract to include to help?

I always liked the line "Shall be provided with equipment and resources not lesser than my team mate" as it covered the widest amount.

[pistonheadforum]

MustangGT said:

There is almost zero chance an up and coming newbie will be able to dictate terms, much less what you suggest.

Ask for a short contact then and renegotiate next year.