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F1 has finally crushed the USA. So why doesn’t he take on a new American team? Congress wants answers.

WASHINGTON — When the Andretti racing team recently contacted a U.S. congressman to discuss Formula One’s shock move to reject its offer to join the grid, it sparked interest.

A legendary American team racing at the pinnacle of motorsports with an engine built by an American automaker? It could provide rocket fuel for the GM and Cadillac brands, a boon for the domestic economy and a chance for American glory in a popular global sport.

Then things escalated quickly.

The congressman, Republican John James of Michigan, joined forces with more than a dozen lawmakers from both parties to write a letter to Formula One Group’s U.S. owner, Liberty Media, demanding answers about why it rejected Andretti. In harsh remarks to reporters outside the Capitol On May 1, James accused F1 of “cartel behavior” and anti-competitive behavior aimed at protecting the mostly European teams from competition with the US.

“Mr. Andretti’s people contacted our office to arrange a meeting to discuss the exclusion of a car manufactured by Andretti Motors GM from F1,” said James’ spokesman Noah Sadlier. “GM is a large company in our district, so this obviously interested the MP James.”

Within days, House Judiciary Chairman Jim Jordan, an Ohio GOP firebrand and viewer of the Netflix series “Drive To Survive,” launched an investigation. Commission staff have since met with Liberty Media representatives, said a source with knowledge of the investigation. Jordan’s office declined to comment on the investigation.

Earlier this week, Sen. Amy Klobuchar, D-Minn., who chairs the antitrust panel, led by a half-dozen senators called on the Biden administration to investigate F1 for violating U.S. antitrust law. The Department of Justice and the Federal Trade Commission confirmed they received the letter.

“I think we have a strong case, otherwise we wouldn’t have sent this letter,” Klobuchar told NBC News. “American teams driving American cars should have the same opportunity to compete. “I am very concerned about the possibility of collusion to avoid competition from Andretti on the race track and competition from Cadillac in car sales.”

John James, D-Mich., speaks with former race car driver Mario Andretti and Rep. Victoria Spartz, D-Mich., during a May 1 news conference.Anna Moneymaker/Getty Images

Standing next to you members of Congress at the May 1 press conference included racing legend Mario Andretti, the 1978 F1 world champion and patriarch of the Andretti racing dynasty, who said he was invited by lawmakers to join them.

Andretti’s visit to Washington, which included meetings with a number of lawmakers, raised eyebrows in the Formula 1 world. It was a dispute between the sports league and an aspiring competitor. Why did the US government get involved with the threatening demands of F1 management and owners?

A few days later, at a VIP reception during the Miami Grand Prix weekend, Andretti and Liberty Media CEO Greg Maffei crossed paths.

It didn’t go well.

As Andretti recalled to NBC News, Maffei broke into the conversation he was having and told him, “Mario, I want to tell you that I will do everything in my power to make sure Michael never gets into Formula 1,” a reference to his son Michael Andretti, who heads the team’s app. Elder Andretti was stunned.

A source close to Liberty Media disputed this version of events, claiming that it was Andretti who contacted Maffei and that Maffei told him that F1 had rejected Andretti Global’s application for valid business reasons.

This interaction may have legal consequences.

“Andretti’s anecdote, if true, raises one critical question: Why was Maffei against Andretti’s offer? said Daniel Francis, a law professor at New York University and former deputy director of the FTC’s Bureau of Competition. “If he was against it because he thought Andretti would be detrimental to the sport or because he didn’t believe Andretti would be competitive, there’s no problem. Antitrust laws don’t say you have to be nice to people at parties. However, if the opposition was based on personal reasons or in order to maintain monopoly profits at the expense of consumers, this provides ammunition for Andretti’s claims.”

Michael Andretti, CEO and president of Andretti, in the paddock before the F1 Grand Prix in Miami on May 4.Chris Graythen File/Getty Images

More broadly, Francis said: “Antitrust cases are made or ended on evidence about effects, specifically effects on consumers. There are really only two questions: Are membership rules in the best interests of consumers? And were they applied fairly? If so, they (F1 management) have nothing to worry about. If not, Andretti may have a case here.

The primary source of tension is that the sport’s governing body, the FIA, accepted Andretti Global’s application to become F1’s 11th team, saying last October that it met “stringent criteria” set out “in all material respects.” However, a few months later in January, F1’s commercial side rejected the decision, stating that it did not believe Andretti Global would be competitive or add value in 2025 or 2026.

Could pressure from US lawmakers move the needle? Maybe.

Francis said antitrust investigations could result in “reputational damage and the risk of intrusive injunctions,” something large companies prefer to avoid. “So sometimes just threatening to sue or filing a complaint with enforcement agencies can encourage the other side to reconsider their position. This makes antitrust laws a great bargaining leverage, even if the case may not be won.”

Andretti is once again a hot topic at this weekend’s Monaco Grand Prix.

Red Bull team principal Christian Horner said he was “surprised to see Andretti go through this process” when asked about a letter from US senators calling for an investigation into F1.

While Horner said he would “absolutely” welcome Andretti Global to F1, he said “the most natural solution for them is to take over the existing franchise if someone wanted to sell it.” Horner admitted that Liberty Media has built so much power into its model that “even the worst team in Formula 1 is probably valued at a billion dollars.”

Alpine team principal Bruno Famin added: “Big name, Andretti-Cadillac. However, we must be very careful not to dilute the value of the championship and also to preserve its value for the teams. There are two ways: they buy the team or they add enough value to the championship to compensate.

Regardless of Andretti’s fate, America’s influence in F1 will continue to grow. Red Bull, the defending world champions, will collaborate with Ford on engines from 2026. The lesser-known and often troubled Haas team, owned by American Gene Haas, remains a competitor.

Mario Andretti talks to Christian Horner in the Circuit of the Americas paddock in Austin, Texas, on October 20, 2023, ahead of the United States Grand Prix.Reginald Mathalone / NurPhoto via AP File

Some insiders have speculated that as the value of the F1 championship has increased since the Concorde Agreement was signed in 2020 to set the rules, the sport may want Andretti Global to pay more than its current entry fee of $200 million.

Asked if he thought this was reasonable, Mario Andretti replied in an interview: “They can ask. I don’t know if it’s legal to exceed that at this stage. So this is a debatable situation. I know what’s part of Concorde now. This is what we are ready for… They want more there, but they never told us specifically. So we need to be clear about what their demands are. But tell us. Don’t keep us hanging.”

“I don’t see how we couldn’t add some interest as an all-American team with the largest car manufacturer, the Cadillac brand. And increasing the fan base that already exists. It’s unthinkable. You know it’s positive,” Andretti continued. “So I think we bring something valuable. This is a big investment in the sport we love.”

Across the U.S., fan numbers have grown rapidly in recent years, according to ESPN, and this month’s Miami Grand Prix was the highest-rated F1 race ever among American viewers.

The Senate letter was signed by both Michigan senators, as well as Senator Todd Young from the Indian state where Andretti Global is headquartered.

“Addition of the Andretti-Cadillac team to Formula 1 would be a win for Michigan’s economy, would create good-paying jobs in our state, and would likely increase Formula 1’s presence across the country,” said Senator Gary Peters, D-Mich., director of the Senate Committee. Homeland Security and Government Affairs. “We produce the best cars in the world, including race cars, so I am concerned that behind the scenes our foreign competitors are making efforts to prevent Americans from racing. We need answers and I intend to stay on this issue to ensure the team gets a fair chance.

Klobuchar said F1’s popularity around the world makes it a “major marketing asset” for the American car brand.

“It’s a marketing coup to be a part of this,” she said. “That’s why we don’t want a coup to protect them from a marketing coup.”