100 Million dollar fine for Spying

[Rascus]

Too bad it wasn't on the Patriots

Spying doesn't pay.

Accused of using leaked secret data from its main rival Ferrari, the Formula One team McLaren was hit with a record $100 million fine Thursday by the World Motor Sport Council in the biggest scandal to hit auto racing's premier circuit.

Although McLaren drivers Lewis Hamilton and Fernando Alonso escaped punishment Thursday, the espionage claims have rocked the sport and tainted McLaren's lead in the drivers' standings.

The team, also stripped of its constructors' points, already was battling accusations that it had used team orders to decide which driver would win races this season. Now, it is facing a new crisis.

And it's not the only major sports franchise accused of espionage. The New England Patriots have been accused of violating league rules by videotaping New York Jets coaches sending defensive signals to players. And at the women's World Cup in China, Denmark team officials found two men with video cameras sitting behind a two-way mirror in a hotel conference room where the team was about to hold a strategy meeting.

The F1 case broke in July when a 780-page technical dossier on Ferrari cars was found at the home of McLaren's chief designer, Mike Coughlan, who was later suspended. Ferrari mechanic Nigel Stepney, who allegedly supplied the documents, was fired.

McLaren escaped censure by the World Motor Sport Council in July due to insufficient evidence that Ferrari's technical documents were misused. But Honda's revelations that Stepney and Coughlan had approached team boss Nick Fry in June about joining the F1 team whipped up further concerns over Ferrari's intellectual property.

The $100 million fine imposed on McLaren is 40 times larger than the previous F1 record ($2.5 million).

Still, Dennis argued the fine is effectively halved because McLaren doesn't have to forfeit any revenue it's earned this season. He added that the financial strength of McLaren also would help absorb the impact of the fine.

``We still effectively have as an offset the revenue from the point earned to date,'' he said. ``That will probably effectively halve the size of the check that we ultimately have to sign -- if we ultimately accept this fine.

``We turn over roughly $450 million to $500 million a year and we are debt free, so we're a very strong company (with) phenomenal growth.''

And it likely won't cost McLaren the Formula One drivers' title.

Hamilton and Fernando Alonso, who lead the drivers' standings, are well ahead of Ferrari's Kimi Raikkonen and Felipe Massa with four races left.

Hamilton, in his debut Formula One season, leads with 92 points, followed by two-time champion Alonso with 89. Raikkonen (74) and Massa (69) are third and fourth. And Alonso and Hamilton finished 1-2 in Sunday's Italian GP -- at Ferrari's home track of Monza.

FIA said it did not penalize McLaren's drivers ``due to exceptional circumstances'' because they provided evidence in exchange for immunity.

Asked whether the futures of Hamilton and Alonso at McLaren had been compromised by the scandal, McLaren chief Ron Dennis said the two drivers remain under contract.

``We have contracts with both of our drivers, multiyear contracts, and there has been no discussion about varying them,'' Dennis said. ``We have two of the best drivers in the world. If there is any variation to those contracts then it will be by mutual agreement.''

The World Motor Sport Council ruled in July that McLaren was guilty of fraudulent conduct for possessing the Ferrari documents, but didn't punish the team because there was insufficient evidence the material was misused. However, the sport's governing body (FIA) called a new hearing of the council last week after ``new evidence'' had emerged.

Dennis said the evidence given by his drivers, engineers and staff on Thursday clearly demonstrated that his team did not use any leaked information to gain a competitive advantage.

``The evidence today was primarily e-mail traffic between our drivers, and in one instance, Mike Coughlan,'' Dennis said. ``These were a few e-mails and the drivers have stated categorically that no information was passed to the team, and of course, the team had no knowledge of this e-mail traffic at any stage.''

Among those appearing at the hearing before the 26-member council were Hamilton, Dennis and McLaren test driver Pedro De La Rosa. Alonso did not attend.

``There will be no issue for the 2008 season as we have not at any stage used any intellectual property of any other team,'' Dennis said.

Also under Thursday's ruling, McLaren is ineligible from earning any more points in the final races of the season.

``Ferrari is satisfied that the truth has now emerged,'' the Italian team said in a statement.

McLaren escaped the harshest possible penalty -- banishment for it and its drivers from the 2007 and 2008 championships. The England-based team said it will wait for FIA to publish its findings Friday before deciding whether to appeal, but Dennis said that his future plans to hand over control to McLaren COO Martin Whitmarsh won't be expedited because of the scandal.

``My personal future was never in question as far as I was concerned,'' Dennis said. ``I am very committed to this company, I am very passionate about motor racing and I have absolutely no intention of retiring.''

Separately, McLaren was notified Saturday that it is being investigated in a separate criminal inquiry in Italy. Dennis and five other team members are reportedly under investigation.

Those allegations stem from Ferrari's criminal case against Stepney for allegedly placing a mysterious white powder on the gas tanks of the team's cars before the Monaco Grand Prix, in a supposed sabotage attempt.

Associated Press writers Raf Casert in Spa-Francorchamps, Belgium, and Samuel Petrequin in Paris contributed to this report.

[Gimpdiggity]

Wow...I don't know exactly how much money is thrown around in that racing league, but $100 million is a TON of money...

[bzbatl]

Yeah I saw that on the ESPN ticker yesterday. I thought it was a typo.

[mikem317]

Yikes. That's a lot of cake.

[Czolgosz]

...
And at the women's World Cup in China, Denmark team officials found two men with video cameras sitting behind a two-way mirror in a hotel conference room where the team was about to hold a strategy meeting.
...

uh huh, spying on team strategy.