Formula 1 is about to be under new ownership -- and "it could lead to profound changes in the sport," according to Andrew Benson of the BBC. U.S. group Liberty Media is "poised to complete its takeover of the commercial side of F1, possibly as early as this week." At the same time, "it has problems to sort out." Chase Carey, the man picked by Liberty as F1's chair, has been told in meetings with senior figures over the past few months that F1 is "dysfunctional" at present. If it "was not before the deal was made," Liberty is "well aware now" that the sport it is taking over "could be in better condition." Carey has spent time "getting to know what the company that employed him has bought." His findings were:
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The revenue system is skewed in favor of the "already rich and powerful, to the extent that the smallest teams are struggling to survive and money is tight for about half the grid."
- There is a "lack of competition on track."
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TV audience figures are "dropping in many markets" -- although this is "largely because of a switch" to pay-TV, to make more money from TV rights deals.
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The longest-standing races are "struggling to fund themselves and risk dropping off the calendar."
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The decision-making process is "not working properly."
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Some "significant business and sporting decisions have been made for solely financial reasons, disregarding other important factors, such as their effects on the sporting side."
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An acceptance that F1 has "lost some of its appeal, particularly a sense of edge and drama and as an extreme driver challenge" (BBC, 1/23).
