You are dead on. Altadis got their panties in a wad because they were out foxed by Yamaha. Rossi wants to race yellow bikes and he got his way. Altadis thought that Yamaha was going to self-finance a one year deal for the factory team but they were wong. Now, JTI is stuck with this stupid arbitration deal but in the end DORNA will side with Yamaha. From the reports I have seen Yamaha never agreed on a non-compete deal that Altadis says existed. So, as far as I can see (so far) Altadis is SOL.
Altadis can sponsor me on a bike for a year ; not many people get a chance to ride in the big leagues. There has to be someone out there who will take their money, although I know there is more to it than that. Did MOTOGP limit the amount of factory teams for 2006?
No. The rumor is Vale had a personal problem with Altadis and in his contract he has the right to refuse sponsors based on his person desires. Camel (JTI) just happened to be in the right place at the right time. Vale was supposed to bring a "big" money personal sponsor in but Yamaha wanted to lock up the finances for the season now. So, since Vale likes Yellow (everything) Camel trotted in with around $12-15 mill and made everyone happy. Except for that pesky Atladis thing. As far as the number of teams- DORNA had a master plan to have 5 Factory 3 bike teams. That blew up when cost when up. Now they want 5 factory 2 bike teams with at least 2 or 3 support teams for the Asain big 4. KR, WMC, and Ducati maybe even Kawasaki don't have '06 sponsors locked-up but King Kenny's got something working for the Honda deal he's working on. Other than that, all is "normal" in MotoGP.
Altadis and Yamaha had a contract for the 2006 season.. the legal question is whether or not that contract gave Yamaha a unilateral right to terminate the contract. Yamaha feels that they had that right, Altadis feels they didn't.
If the answer is "not" then Yamaha's gonna have to pay Altadis some $$$... just like Yamaha made Alex Barros pay when he bailed on his contract last year.