Formula 1 teams "will be given the chance to buy a stake in their sport for the first time under the terms of the takeover," according to Kevin Eason of the LONDON TIMES. Details reveal that several teams "have already approached Liberty Media wanting to take shareholdings" after the global media conglomerate completed the first steps to a full $8B takeover of Formula 1. It is "not known which teams are interested but McLaren, Mercedes, Red Bull and Ferrari are likely to be the first names in the frame" as they bid to secure the future of the sport. A Liberty Media statement said, "The teams will be given the opportunity to participate in the investment in Formula One, and the detailed terms of that investment will be agreed in due course. Certain teams have already expressed an interest in investing after completion of the acquisition." Former 21st Century Fox VP Chase Carey will move in as chair to "run the new business," but F1 CEO Bernie Ecclestone, "long tipped to be pushed out of the sport he can claim to have created, will stay on." It appears to be "the best of all possible worlds" for F1. Teams who claim that the business of F1 was conducted without them will "now have the opportunity to invest and reap the rewards of a business that has grown hugely." Earnings in '99 of $341M have "soared" to $1.8B last year. Teams that have "complained bitterly that CVC Capital Partners, the London-based private equity group, have swept up massive profits without investing can now rest easy" that Liberty, which has TV interests all over the world, looks "set to become an active owner," promoting F1 with an eye on "huge growth" (LONDON TIMES, 9/8). AUTOSPORT's Ian Parkes reported Ecclestone has warned that Liberty Media "will be no different to CVC, in its intention to make money" from F1. During CVC's involvement in F1, it was often heavily criticized for "the fact it appeared to simply take money from F1." Ecclestone said that Liberty Media -- run by media mogul and billionaire philanthropist John Malone -- "will not simply be coming into F1 for the fun of it." Ecclestone: "I don't know why anybody criticized CVC because they were shareholders, they weren't management. They bought the company to make money, and that will be the intention of Liberty. They're not looking at it as a hobby, so it's no different to CVC" (AUTOSPORT, 9/8).
DAWN OF A NEW ERA: In London, Giles Richards reported the income from the sale is "likely to make F1 the most profitable deal" in Liberty's history. Much is "expected of the new owners, with considerable emphasis on pushing the sport into new media and targeting new audiences." Liberty will "use its leverage as a media company to promote the sport and is likely to develop a new business model to back it" (GUARDIAN, 9/7). Richards reported in a separate piece Ecclestone said that Liberty "wants me to be here for three years." This will "be a disappointment to some," as many "cannot wait" for Ecclestone to go (GUARDIAN, 9/8). In London, Daniel Johnson reported "despite his determination to fight on, Ecclestone faces an unprecedented battle for power" with Carey. He is "likely to find Carey one of his toughest adversaries." But Ecclestone "claimed his relationship with Carey would be different from previous executives brought in to work with him." Ecclestone said, "He (Carey) can do lots of things that I haven't done with this social media, which he seems to be in touch with. He's been dealing with sponsorship with his TV people. Between us we'll get on with it" (London TELEGRAPH, 9/8).
MARKET WATCH: MOTORSPORT's Charles Bradley reported Liberty has "pledged to keep Europe as a key foundation to its strategy, while exploring the potential for 'a whole new generation of fans' in new markets." Carey said that Liberty is "excited to grow the sport in emerging markets -- as well as his native America -- in [the] future." Carey: "Building the sport in Europe, building on that foundation, has got to be second to none. ... In the longer term, markets like the U.S. and key Asian markets are opportunities to develop. We're not going to do that overnight" (MOTORSPORT, 9/8).
UP TO SPEED: Johnson wrote in a separate piece it is "hard to get your head around the idea that a sport can be valued so highly," but F1's "complicated ownership structure makes it even harder to understand." Most of its revenues "come from three sources: hosting fees from race promoters, television deals and sponsorship." The "shift towards pay TV is already damaging" F1, and that can "only go on so long." The "rise of new media cannot be stopped -- Ecclestone is notoriously sceptical about social media -- and before long he is going to run out of countries around the world with millions to spend on hosting a race." This must be "the rationale behind why an American mogul like John Malone was interested in the first place." For Liberty, F1 will "be a content platform, but it is also a means of making money." Many hope Liberty will "open the sport up, taking it to an American audience with far more gusto than ever before" (TELEGRAPH, 9/8).
