Chinese investors "are in pole position to shape the future" of F1 as one of the country's largest investment firms backs an $8.5B takeover bid for the sport, according to Mark Kleinman of SKY NEWS. China Media Capital is leading a group of Chinese firms that want to invest roughly $1.5B in an offer being assembled by NFL Miami Dolphins Owner Stephen Ross. Ross's consortium is "understood to be planning to write in the coming days to CVC Capital Partners, F1's controlling shareholder, to seek a 90-day period of exclusivity" during which it would hold "detailed talks" with F1 CEO Bernie Ecclestone and undertake due diligence. CMC is among a group of Chinese media investors -- which also include Fosun and Wanda -- pursuing "rapid global expansion," recently unveiling a partnership with Hollywood studio Warner Bros. Entertainment to produce Chinese-language films for distribution around the world. The proposed takeover of F1, "which remains far from certain to take place," still requires roughly $2B in additional equity from other investors. Insiders said that CVC has not yet decided "whether to grant the exclusivity request." Qatar Sports Investments, which owns Paris St. Germain and had been tipped as a partner of Ross, is reportedly "now on the periphery of the deal and may not participate at all." Sources said that the consortium "was keen" for Ecclestone to "retain his role overseeing its racing operations, while a new commercial team would look to exploit the sport's media and sponsorship rights more aggressively." A source close to the bid said, "They believe they can double F1's profits." Goldman Sachs is advising CVC on the discussions, while Ross's consortium is being advised by N.Y.-based merchant bank Raine (SKY NEWS, 10/16).
LACK OF ENTHUSIASM: ESPN's Laurence Edmondson reported Ecclestone said that he "lacks enthusiasm" to expand F1 in the U.S. despite the size of the country's potential market. The U.S. Grand Prix returned to the calendar in '12 and the fourth race at the Circuit of the Americas outside Austin is set to take place next weekend. A deal for a second race around the streets of New Jersey "fell through in recent years." Ecclestone: "We ought to try to be for a little bit in America, but it's hard for me because I'm not very enthusiastic about America. The biggest problem with America is they believe they are the greatest power in the world. Not in reality, but in belief. It's difficult because they are sort of isolated -- they are a big island -- and they are slowly starting to learn about what other people in the world do" (ESPN, 10/16).
