MICHELIN has offered refunds totalling more than £9 million to the 120,000 fans who attended the US Grand Prix, which ended in farce, but whether the tyre manufacturer can head off a plethora of lawsuits being prepared in the United States, which could cost tens of millions of pounds, and prevent a split in the sport’s ranks, remains to be seen.

Formula One faces what could be the most important few hours in its history today. Seven teams appear before the world council of the FIA, the governing body of motor racing, along with Michelin, to face charges that amount to bringing the sport into disrepute after boycotting the race in Indianapolis ten days ago. But draconian sentences could catapult Formula One into an internecine war that could split the sport in two. Max Mosley, the FIA president, has given warning that he cannot back down in the face of the complaints of the seven — Renault, McLaren Mercedes, BMW-Williams, Toyota, Sauber, Red Bull and BAR Honda — plus Michelin, that they could have raced at Indianapolis if he had been willing to compromise.

Common sense may yet prevail, though, and Michelin’s unilateral decision to reimburse fans, even though not yet legally bound to do so, could be the first step. There is also speculation that a non-championship race could be put on at the end of the season or a race provided for free next year.

That would cost the teams around £20 million, but there is an increasingly desperate mood in the Formula One camp, with worries that the seven will simply boycott the French Grand Prix on Sunday if they feel harshly treated. At that point, Formula One would be on the road to no return.

The seven teams withdrew from the US Grand Prix after Michelin could not guarantee the safety of their tyres on the unique 180mph banked final turn at Indianapolis. Hurried negotiations failed to find a compromise and American spectators, plus a worldwide television audience, were treated to the sight of 14 cars driving the parade lap before pulling into the pits, leaving Ferrari, Minardi and Jordan to race.

But Michelin has clearly decided to attempt to pre-empt today’s sentencing by making what it describes as “a sincere gesture of goodwill”. As well as paying compensation, Michelin has offered to buy a further 20,000 tickets for the 2006 US Grand Prix, to be given to spectators who were present at last week’s race.