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| Bernie Ecclestone |
Liberty Media, the media investment group owned by John Malone, "is closing in on a deal to take a significant stake" in Formula 1 in a deal that would "value the racing car series" at between $8B and $9B, according to Bond, Fontanella-Khan, Garrahan & Ahmed of the FINANCIAL TIMES. The U.S. company "is in advanced talks with CVC Partners, the private equity group which controls F1’s parent company," according to several people briefed on the deal. They said it "could be announced within the next two weeks." But one person involved in the negotiations said that it was "not a done deal" and that "it will come down to the wire." If completed, the transaction "would end months of speculation about the future ownership of F1." It would also be a landmark deal for Liberty Media which would secure the prize "only after a number of parties" had kicked the tires over the sports franchise over the past year. Liberty became the frontrunner "after seeing off recent interest from private equity group Silver Lake" and U.S. talent agency WME-IMG. According to people briefed on the talks, Liberty plans to take a 10-15% stake in F1’s parent company initially for £1B-£2B ($1.33B-$2.66B), with an agreement "to take full control of the business further down the line" (
FT, 9/4). REUTERS' Maria Sheahan reported F1 CEO Bernie Ecclestone said that a sale of F1 "is to go ahead next week." German trade magazine auto motor und sport said that according to Ecclestone, Liberty Media will transfer the first of two tranches of payment in the $8.5B deal on Tuesday. Fiat Chrysler CEO Sergio Marchionne earlier said the industry as a whole "had a vested interest in stability" for F1. He said, "I’ve had this conversation with CVC in the past, I’ve had it with Bernie ... I think it’s important that we provide stability and a long-term view. I’m sure that will happen soon" (
REUTERS, 9/3).
NEW BOSS: SKY NEWS' Mark Kleinman reported one of the media industry's top execs, Chase Carey, "will be named as the new boss" of F1. Carey, "a long-standing lieutenant of Rupert Murdoch," is likely to be named as chair of F1's parent company "as soon as Monday." Peter Brabeck-Letmathe, who has chaired F1 for the last two years, "is to step down from the role but is expected to remain on the board as a non-executive director." Carey's appointment will come "just hours before CVC Capital Partners, which has owned a controlling stake in F1 since 2005, signs a deal to hand over ownership" of the sport in a deal worth more than $8B. The appointment of Carey, a former DirecTV and News Corp. exec "who continues to serve on the board" of Murdoch's 21st Century Fox, will signal Liberty Media Corp's intention "to exploit F1's lucrative media rights more aggressively, sources say" (SKY NEWS, 9/4).
'GOOD NEWS': The BBC reported CVC has been criticized for "taking considerable profits from the sport, which has suffered from falling TV ratings in recent years." Given that Liberty is a media and entertainment group, analysts hope it will "give more consideration to the spectacle offered by F1." Mercedes Motorsport Dir Toto Wolff said, "If there is an investor that wants to buy the shares it is good news for Formula One. There are things we can learn from the American way, particularly in digital areas" (BBC, 9/5).
ECCLESTONE ADAMANT: In London, Samuel Lovett reported Ecclestone "has insisted he will still remain in charge" regardless of "whether the sport is sold to new majority owners." He is currently employed as the F1 CEO by CVC but his position "is likely to come under threat if and when the deal goes through." Eddie Jordan, a former team owner-turned-pundit, suggested the 85-year-old "could be gone by the Singapore Grand Prix in two weeks’ time." Ecclestone said, "I'll keep on doing what I have always done. What role I play is my decision" (INDEPENDENT, 9/5). In London, Daniel Johnson reported Jordan, the former team boss, pundit, and "close ally" of Ecclestone, said that the Italian Grand Prix would be the 85-year-old’s "last as chief executive." Jordan claimed Ecclestone’s tenure "was over and that he would not be in Singapore for the next race later this month." However, "this extraordinary claim, made live on Channel 4, was immediately scotched" both by Ecclestone and CVC Chair Donald Mackenzie. Mackenzie said, "I would be very surprised if there was any announcement this week. As far as I am aware, Bernie is going nowhere. Nothing has changed." Ecclestone described reports of a deal as "b------t" (TELEGRAPH, 9/4). REUTERS' Alan Baldwin reported Red Bull Team Principal Christian Horner and others "doubted any departure would be rushed." Horner: "There is obviously a lot of speculation going on. I sincerely hope it is not Bernie's last race and I don't believe it will be." Austrian Niki Lauda, the retired triple world champion who raced for Ecclestone in the '70s and is non-exec chair of Mercedes, said that the Briton "would be at the next race." He said, "This I can tell you. He will be in Singapore (on Sept. 18)" (REUTERS, 9/4).
STAYING INVOLVED: In London, Paul Weaver opined Ecclestone, "the Rumpelstiltskin lookalike who has spun gold for himself and Formula One with prodigious success," has been written off many times. He "is likely to be involved for the immediate future should the deal with Liberty Media go through." In fact "it would be foolhardy to dispense with his services straight away -- and it would be about as complicated as the Brexit negotiations." Ecclestone, who "prefers to work alone, has so many deals rattling around inside his head that the probability is Liberty Media would retain his services, at least in the short term." And as he will be 86 next month, "this is hardly a long-term issue." But for the moment, Ecclestone "plans to go nowhere and he retains a stake of almost 15% in the business" -- he holds 5.3% of F1 and his Bambino Trust has another 8.5% (GUARDIAN, 9/5). MOTORSPORT's Jonathan Noble reported Ecclestone "is understood to have briefed teams and car manufacturer representatives about the F1 takeover plans over the Monza weekend," as the sport awaits "a final signature on the contract." When asked if it was important that Ecclestone stays, Wolff said, "He has built an empire and we are benefiting from it. That thing generates millions of live views and full race tracks like we had [at Monza] and $1.5 billion in profits every year, so he has done an awesome job" (MOTORSPORT, 9/5).
