FORUMula1.com - F1 Forum

[myownalias]

If Bill, Gaz and Bud can get along; maybe this forum should be used for peace in the middle east?

On the story; I believe it will never happen; conflict of interests for Ferrari and the spectre of losing F1 to pay per view or satellite/cable is unthinkable for teams and sponsors!

[spankyham]

Another interesting development reported here which I feel is directly related to the buy-out.

Basically the "big teams" are meeting and I think we can expect to hear a fairly united voice from them.

My suspicion is that Ferrari is not the only team involved in the possible buy-out. When Exor put their hand up and identified themselves, they mentioned other partners.

Ferrari is taking a leading role, that's pretty much LDM's style so he's happy to do that. But I would not be in the least bit surprised to find out that McLaren, Mercedes etc have been quietly in on this from day one. They have been somewhat conspicuous by their absence in the discussions until this report. If the major teams all had a stake in the sport thought a buy-out of CVC it would actually make a lot of sense.

And if the last paragraph of the report is true, then I think they have hit on some very positive changes they can make - very much for the better of F1. Simpler rules, reduced ticket prices and I also love this bit "revival of key European venues"

[What's Burning?]

So the only disagreeable aspect of the "posturing" is Rupert "Jabba The Hut" Murdoch. Coming to think of it, that would make a great look-a-likes post.

[Fred_C_Dobbs]

So the only disagreeable aspect of the "posturing" is Rupert "Jabba The Hut" Murdoch. Coming to think of it, that would make a great look-a-likes post.

Of all the F1 "soothsayers" to whom the motoring press tends to give platform, I find EJ perhaps the least reliable.

[texasmr2]

A fishing buddy mentioned this news while we were fishing for White Marlin in Costa Rica.

[Fred_C_Dobbs]

From this week's "The Economist" print newsletter:

Murdoch at the wheel?

In a joint statement News Corporation and EXOR, the investment company of Fiat's founding Agnelli family, announced that they were hoping to set up a consortium with "a view to formulating a long-term plan" for the development of Formula One, the premier international motor-racing championship. Fiat is the controlling shareholder in Ferrari, which races in the tournament. Formula One is owned by CVC Capital Partners, a private-equity firm, although the sport is still run by Bernie Ecclestone, who turned it into a global hit.

[myownalias]

Listening the the Five Live coverage on FP2; the whole buyout speculation and the supposed meeting between Ferrari, McLaren, Mercedes and Red Bull and someone from News Corp would be illegal as according to the current Concorde Agreement prohibits teams talking with any potential of F1 commercial sector buyers before January 2012.

[vaptin]

Listening the the Five Live coverage on FP2; the whole buyout speculation and the supposed meeting between Ferrari, McLaren, Mercedes and Red Bull and someone from News Corp would be illegal as according to the current Concorde Agreement prohibits teams talking with any potential of F1 commercial sector buyers before January 2012.

Aye, but that concorde agreement is running out. Although, all Bernie has to do, is get the new one to have the same condition.

[myownalias]

I think that biggest problem to overcome will be the EU; the EU will more than likely block the sale as it would be a massive conflict of interest; EXOR own 40% of FIAT and FIAT own 90% of Ferrari, and no team/company should have any control over the sport in which they compete. And if this meeting does go ahead; Bernie could sue those teams who meet with someone from News Corp as it would be a clear breach of contract. And apparently there will be a meeting of FOTA members on Sunday morning which was called because the other seven teams are not happy about this meeting with News Corp so the rumour mill has it!!! I will be very surprised if this deal goes through; Bernie will loosen his grip on the purse strings from 2013 onwards to avoid that I believe!

[vaptin]

Whitmarsh denied reports that the top four teams - Ferrari, McLaren, Red Bull and Mercedes - were planning a meeting with News Corp executives in the near future.

"I'm not aware of any meeting with News Corp," he said.

A Fota meeting is scheduled for Sunday morning in Istanbul and a potential takeover will be one of several topics on the agenda.

However, Whitmarsh has now floated the idea that the 12 teams would like to take ownership of the sport they contest.

"Ultimately it is desirable to have team ownership of the commercial rights," he said at the Turkish Grand Prix.

"We, the teams, all have to look at whether we want to be involved in an ownership model in the future if the current owners want to sell. I suspect they will at some stage.

"The teams want to ensure first and foremost that we have stability.

"The teams want to ensure that the sport is sustainable and, to be sustainable, you need appropriate investment in the future, the appropriate distribution of the revenue to the teams.

"To most [of the teams], who owns [Formula 1] isn't the biggest concern."

Renault team principal Eric Boullier added: "It's a new era for Formula 1.

"Manufacturers were here for 10 years and the core business of manufacturers was to build road cars not F1.

"Today most of the teams on the grid are private companies and our core business is F1.

"So our view is completely different to the previous players and, yes, I think we should be involved in some way in the ownership of the show and we should have a key role in promoting F1."

F1 would come with an expensive price-tag and many of the teams are known to be struggling to raise the budgets they need to race in a difficult financial climate.

But, as Boullier points out, the teams have backers who make their money elsewhere but see the sport as a useful marketing tool.

For example, Renault itself is now largely owned by the Genii Capital investment group, champions Red Bull are funded by the energy drink empire and Mercedes are owned by car heavyweight Daimler.

However, when it comes to the ownership of F1 Bernie Ecclestone, who runs F1 on behalf of CVC, insisted last month the sport was not for sale.

"Personally, I know CVC don't want to sell, so it's going to be a bit difficult," said Ecclestone. "I can see CVC in for the long haul, absolutely, 100%."

And on Tuesday the 80-year-old questioned the likelihood of a News Corp bid succeeding.

One of the sticking points for Rupert Murdoch's News Corp is that under the current Concorde Agreement - a commercial arrangement involving the teams, CVC and the sport's governing body, the FIA - F1 must not be shown only on pay TV in major territories.

Whitmarsh said that because of the sport's desire to reach a wide global audience that would have to remain in place.

"People are saying what about pay-to-view? The business model of the teams is currently structured on having a mass exposure of the moving pictures that we generate," he said.

"It used to be called free-to-air and I think whatever happens going forward, I'm sure the teams will insist it is free-to-air in all the major markets.

"Effectively we need a model where F1 remains the third largest spectacle in the world in terms of live television audience (behind the World Cup and the Olympics)."

http://news.bbc.co.uk/sport1/hi/formula ... 314790.stm

[spankyham]

Just as I suspected, Ferrari/Exor posturing was well known to at least the other major teams. Martin Whitmarsh has confirmed that. Here is another report where MW states the teams should own the commercial rights to F1.

I did point out when Exor were first mentioned they went to lengths to state their involvement was partly to find others to partner them. Clearly, as one of the biggest investment groups in Europe they don't need access to money, so the partners they were clearly alluding had to be bringing something else. And MW, now joining the fray with LDM is demonstrating who these other participants are what they bring.

[Flux]

it seems that this has all of a sudden gained allot of momentum and press. i agree with Bernie, it would be suicide for the sport and would permanently damage both it and the teams. Especially if it moved to pay per view channels over terrestrial, sponsors would be running away.


news-corps takeover could be the biggest threat to f1 as we know it ever.

that being said it could just be the teams trying to play for the sports commercial rights. and all just a massive mindfuck

[Fred_C_Dobbs]

it seems that this has all of a sudden gained allot of momentum and press. i agree with Bernie, it would be suicide for the sport and would permanently damage both it and the teams. Especially if it moved to pay per view channels over terrestrial, sponsors would be running away.


news-corps takeover could be the biggest threat to f1 as we know it ever.

that being said it could just be the teams trying to play for the sports commercial rights. and all just a massive mindfuck

Bernie has been choking the sport to death for more than a decade. He had the particular skill set necessary to grow F1 into a major international sport but has proved himself lacking in the skills necessary to sustain it there, particularly managing the evolution of the cars. Since he hasn't seen fit to either retire or die, this is the sport's best chance for survival.

[darwin dali]

Since he hasn't seen fit to either retire or die, this is the sport's best chance for survival.

I'm still hoping, still hoping, still hoping...

[myownalias]

it seems that this has all of a sudden gained allot of momentum and press.

Amusing that statement; not because of what you said; more to do with the fact that Murdoch is the press; how many newspapers, news channels and broadcasting networks does Murdoch own?

I believe that if F1 does change ownership; it's exchanging one evil for another evil in my opinion, the idea of F1 moving to SKY TV or even PPV would kill F1; just look at cricket; when the Ashes were shown on free-to-air Channel 4; it's popularity exploded; then it went back to SKY TV and the following dwindled again. Can anyone see Murdoch allowed free to air channels broadcast the race live? I really can't see News Corp spending out that sort of money on a product to have it 'sold' for free!