Formula One Administration (FOA) has issued the following statement in reaction to the statement issued by the Formula One Teams Associations (FOTA) statement issued yesterday (Thursday).

It reads as follows:

Formula One Administration Limited ('FOA'), the commercial rights holder of Formula One, wishes to clarify and correct inaccurate and misleading statements made to the media yesterday by "FOTA".

In particular FOTA claimed that monies are owed by CVC (FOA's controlling shareholder) to the teams for the 2006, 2007 and 2008 Championship seasons. Neither CVC nor FOA owes any amount to any team.

The contract between the commercial rights holder and the teams competing in Formula One, the so-called Concorde Agreement, expired at the end of 2007. All prize fund entitlements payable to the signatory teams under that arrangement were paid when due.

FOA has made new contracts with various teams currently competing in the FIA Formula One World Championship on an individual basis, whereby the team has committed to participate in the Championship for an agreed period in return for which FOA has agreed to pay a share of an annual prize fund generated from and calculated with reference to its profits. Each of these teams has been paid its full prize fund entitlement to date.

A few teams have yet to enter into a contract with FOA concerning their participation in the Championship, notwithstanding which FOA has made substantial payments to each of them on account of future prize fund entitlements they will have when they sign a contract, demonstrating FOA's goodwill and intent to conclude a new arrangement with them.

FOA welcomes that the teams are engaging in constructive discussions to progress a new Concorde Agreement that will encompass all teams. FOA looks forward to finalising and concluding that contract with the teams in the coming weeks, at which time they will be paid whatever their entitlement will be under the new arrangement.

FOA has no relationship with FOTA. It has always had a direct relationship with teams and will continue to do so.