page_title: Formula One
section_title: Big business
hierarchical_section_title: Formula One / History / Big business
caption_attribution_description: English: Stefan Johansson during practice for the 1985 European Grand Prix
context_page_description: Formula One is the highest class of international single-seater auto racing sanctioned by the Fédération Internationale de l'Automobile and owned by the Formula One Group. The World Drivers' Championship, which became the FIA Formula One World Championship in 1981, has been one of the premier forms of racing around the world since its inaugural season in 1950. The word "formula" in the name refers to the set of rules to which all participants' cars must conform. A Formula One season consists of a series of races, known as Grands Prix, which take place worldwide on purpose-built circuits and on public roads.
  The results of each race are evaluated using a points system to determine two annual World Championships: one for drivers, the other for constructors. Drivers must hold valid Super Licences, the highest class of racing licence issued by the FIA. The races must run on tracks graded "1", the highest grade-rating issued by the FIA. Most events occur in rural locations on purpose-built tracks, but several events take place on city streets.
context_section_description: Beginning in the 1970s, Bernie Ecclestone rearranged the management of Formula One's commercial rights; he is widely credited with transforming the sport into the multibillion-dollar business it now is. When Ecclestone bought the Brabham team during 1971, he gained a seat on the Formula One Constructors' Association and during 1978 he became its president. Previously, the circuit owners controlled the income of the teams and negotiated with each individually; however, Ecclestone persuaded the teams to "hunt as a pack" through FOCA. He offered Formula One to circuit owners as a package, which they could take or leave. In return for the package, almost all that was required was to surrender trackside advertising.
  The formation of the Fédération Internationale du Sport Automobile (FISA) during 1979 set off the FISA–FOCA controversy, during which FISA and its president Jean-Marie Balestre disputed repeatedly with FOCA over television revenues and technical regulations. The Guardian said of FOCA that Ecclestone and Max Mosley "used it to wage a guerrilla war with a very long-term aim in view". FOCA threatened to establish a rival series, boycotted a Grand Prix and FISA withdrew its sanction from races. The result was the 1981 Concorde Agreement, which guaranteed technical stability, as teams were to be given reasonable notice of new regulations. Although FISA asserted its right to the TV revenues, it handed the administration of those rights to FOCA.
  FISA imposed a ban on ground-effect aerodynamics during 1983. By then, however, turbocharged engines, which Renault had pioneered in 1977, were producing over 520 kW (700 bhp) and were essential to be competitive. By 1986, a BMW turbocharged engine achieved a flash reading of 5.5 bar pressure, estimated to be over 970 kW (1,300 bhp) in qualifying for the Italian Grand Prix. The next year, power in race trim reached around 820 kW (1,100 bhp), with boost pressure limited to only 4.0 bar. These cars were the most powerful open-wheel circuit racing cars ever. To reduce engine power output and thus speeds, the FIA limited fuel tank capacity in 1984, and boost pressures in 1988, before banning turbocharged engines completely in 1989.
  The development of electronic driver aids began during the 1980s. Lotus began to develop a system of active suspension, which first appeared during 1982 on the Lotus 91. By 1987, this system had been perfected and was driven to victory by Ayrton Senna in the Monaco Grand Prix that year. In the early 1990s other teams followed suit and semi-automatic gearboxes and traction control were a natural progression. The FIA, due to complaints that technology was determining the outcome of races more than driver skill, banned many such aids for 1994. This resulted in cars that were previously dependent on electronic aids becoming very "twitchy" and difficult to drive (particularly the Williams FW16). Many observers felt the ban on driver aids was in name only as they "proved difficult to police effectively".
  The teams signed a second Concorde Agreement during 1992 and a third in 1997, which expired on the last day of 2007.
  On the track, the McLaren and Williams teams dominated the 1980s and 1990s, with Brabham also being competitive during the early part of the 1980s, winning two Drivers' Championships with Nelson Piquet. Powered by Porsche, Honda, and Mercedes-Benz, McLaren won sixteen championships (seven constructors' and nine drivers') in that period, while Williams used engines from Ford, Honda, and Renault to also win sixteen titles (nine constructors' and seven drivers'). The rivalry between racers Ayrton Senna and Alain Prost became F1's central focus during 1988 and continued until Prost retired at the end of 1993. Senna died at the 1994 San Marino Grand Prix after crashing into a wall on the exit of the notorious curve Tamburello, having taken over Prost's lead drive at Williams that year. The FIA worked to improve the sport's safety standards since that weekend, during which Roland Ratzenberger also lost his life in an accident during Saturday qualifying.
caption: Stefan Johansson driving for Ferrari at the 1985 European Grand Prix
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