Bernie Ecclestone says F1 be sold this year.

[bjohnsonsmith]

Originally Posted by wolfhound

It's possible that F1 could have a new owner by the end of the week according to Autosport. CVC are reported to be in negotiations with Liberty media and Stephen Ross who runs RSE Ventures. Both hold US sports franchises.

http://classic.autosport.com/news/report.php/id/126051

Interesting, as they have a 53% stake in Sirius XM Radio, Inc., who are a one of the Verizon IndyCar Series' corporate sponsors and who broadcast the series races, as well as MLB, NASCAR, NBC the NFL and NHL.

[wolfhound]

If F1 gets a US based owner I suspect it might help F1 properly break into the American market.

[Richard C]

Originally Posted by wolfhound

If F1 gets a US based owner I suspect it might help F1 properly break into the American market.

I am skeptical. High costs to host, attended (in person) and view (broadcast) races is an issue. Then getting new viewers to stick given the frankly general boring nature of races (Mercedes dominance) is a huge issue. Lastly, outside of a proportionally small existing fan base, people here are ambivalent about F1 and I think increasingly the same about Motorsports. New owners would have to implement a huge restructuring of most everything (commercial and sporting) to have a real chance of success here. But I am sure they will try "something" to expand this market.

Richard

[Sodemo]

I personally have noticed that its more the younger females that are now following F1 more. I don't actually know that many younger men that do.

Perhaps that's just my own observation and is not representative as a trend.

[Greem]

Originally Posted by Sodemo

I personally have noticed that its more the younger females that are now following F1 more. I don't actually know that many younger men that do.

Perhaps that's just my own observation and is not representative as a trend.

I mentioned it in another thread, but I noticed some changes in demographic at Silverstone this year.

I (fairly self-evidently) spent the weekend's track time in the same place, this year being in front of the Abbey grandstand opposite the pit exit end of the pit garages with the GA area behind me.

On Friday it was really obvious that the 'Hamilton Effect' was strongly in force - lots and lots of what might be described as 'urban' groups, mainly late teens/early 20s men, many with gold chains/teeth/rings etc. They were mostly *very* inquisitive about what we were doing, what that box (my light controller) did, who was in what garage, how fast the cars were past me, who was that? and WOW THESE CARS ARE AWESOME. In each case when I got chatting to them, it was the first time they'd been to a race meeting of any sort and they were all there for either Hamilton or Ferrari. No other teams got a mention, not even RBR.

They were definitely not the sort of crowd you'd call anoraks!

I didn't notice that many young females, but I'm a married man

[Mike Harte]

Originally Posted by Greem

They were definitely not the sort of crowd you'd call anoraks!

I didn't notice that many young females, but I'm a married man

As Graham says, the vast majority, or so it seemed to me over the three days, were not motor racing fans; they were there for the F1 proceedings, but principally to "support" one or more drivers. Hence the clapping and cheering when ever Hamilton went past, and Button to a certain degree, and boos for Rosberg. I fail to understand the mentality, personally.

Once the F1 cars disappeared into their garages, so did the crowds. Yet to our minds, the action and racing in the support package was actually far superior to the main event. And as I wrote elsewhere on another thread, most of the grandstands didn't fill out until just before the F1 race, not even the old BRDC stand and the Silverstone Racing Club stand. This was the complete opposite to the previous F1 race I attended at Suzuka where all the seats were full from the crack of dawn, and even hours after the race had finished, huge numbers of the spectators were still sat around watching replays of the races on the giant screens. And there were no boos, either!

As to the young females, there didn't seem to be that many around unless with their families or partners. As opposed to the Fairford International Air Tattoo last year, where my son and I were both struck by how many young ladies were around, seemingly by themselves, but obviously keen plane observers, and most with very expensive cameras at the ready for aircraft moments.

[wolfhound]

From what I have been reading in various media John Malone of Liberty Media is to shortly take control of F1 from CVC.

I am just wondering about him as most of his activities seem to North America based (although he also control parts of Virgin in this part of the world) what sort of operation he runs. Does he invest in business to improve them or just go for the short term quick buck like CVC?

[chillibowl]

Originally Posted by wolfhound

...Does he invest in business to improve them or just go for the short term quick buck like CVC?

well Liberty Media own(ed) a Major League Baseball team, the Atlanta Braves.

i dont follow that sport that much but i think i am correct in saying that after several years of owning the Braves, earlier this year they took the team public by listing it on the New York Stock Exchange.

if they are following that model then this move could be more about using their influence in global media markets in an attempt to drive up demand for a future IPO and trading of F1 themed stocks.

so if that means reorganizing the sport in a more sustainable way, better tv deals, greater expansion into the US etc then perhaps they will get a more valuable stock offering while we, the fans, get a better version of F1.

on the other hand they may do all sorts of daft things thinking they are making it better but completely rubbish the whole thing in the process.

in which case they default on their loans, claim an investment loss and move on to the next big thing.

[Mike Harte]

Originally Posted by wolfhound

From what I have been reading in various media John Malone of Liberty Media is to shortly take control of F1 from CVC.

I am just wondering about him as most of his activities seem to North America based (although he also control parts of Virgin in this part of the world) what sort of operation he runs. Does he invest in business to improve them or just go for the short term quick buck like CVC?

It doesn't seem to be John Malone, per se, that is looking to take control, but two of his autonomous businesses that appear to be in competition with each other for t6he prize of F1.

He is a cable man, and has been in the business for donkey's years. His companies are not investment houses (hedge funds), and at one time he was attempting to take control of News Corporation from Rupert Murdoch. And Liberty have complete control with about 90% of the shares, whilst Branson has held on to about 3%.

In addition, Liberty companies operate in about 14 countries.

[Richard C]

Three year transition for Bernie Ecclestone with new F1 owners (deal not done yet)...

http://www.bbc.com/sport/formula1/37298242

Frankly... Given the stagnant situation with little hope for change, I am hopeful of an F1 minus BE. I expect some drama and missteps during the switchover, but at least it will be something different.

Richard

[chillibowl]

its sounding like this is close to being a done deal then?

[chunterer]

Multiple reports saying done deal with Bernie staying on as CEO for 3 more years reporting to Chase.

[ScotsBrutesFan]

And from the Horse's mouth...

http://ir.libertymedia.com/releasede...leaseID=988264

And as summarised by the BBC
http://www.bbc.co.uk/news/business-37303230

[bjohnsonsmith]

Originally Posted by ScotsBrutesFan

And from the Horse's mouth...

http://ir.libertymedia.com/releasede...leaseID=988264

And as summarised by the BBC
http://www.bbc.co.uk/news/business-37303230

So Murdoch has got F1, through the back door.

[chillibowl]

From the BBC article:

'The total transaction values the firm at $8bn but includes $4.1bn worth of Formula 1's debt.'

So 8bill plus offloading 4bil in debt...that's actually a 12bil deal!!!

Let's see what they do with their new toy.

[wnut]

Originally Posted by chillibowl

From the BBC article:

'The total transaction values the firm at $8bn but includes $4.1bn worth of Formula 1's debt.'

So 8bill plus offloading 4bil in debt...that's actually a 12bil deal!!!

Let's see what they do with their new toy.

You begin to wonder how many times Bernie has sod the same thing to different buyers for ever increasing amounts of money while still maintaining control.

[bjohnsonsmith]

Originally Posted by wnut

You begin to wonder how many times Bernie has sod the same thing to different buyers for ever increasing amounts of money while still maintaining control.

Haha!

[Moneyseeker]

Not wishing to rain on the parade, but with that purchase price someone is going to have to pay for it, in either higher rights fees or TV deals, which ends up passed back to all of us in ticket prices or ppv TV. Maybe Liberty will finally unlock the US market and corporates and that will be the new cash cow?

Or maybe they will find out how to make money from social media, in which case can they let twitter know as they haven't!
They can't fit anymore races on the calendar, I would suggest that everywhere that can genuinely afford to build a track and fund a GP has already done it. Sell out races like Silverstone are at the peak of ticket prices and capacity and still barely make the race pay and the fees go up every year.

BE has already plastered most races with sponsors already.

I don't want to be sceptical but where is the growth going to come from?

Thoughts?

[JABWOA]

Digital access is my recommendation for growth. TV viewership has decreased hugely around the world while internet access has increased immensely. I'd be happy to pay US$200 a year for mobile access to all sessions instead of the US$800 a year I have to fork out for pay tv access or 30 minute highlights of every second race 24hrs later on free to air.

Would only need 40 million subscribers in a year to make their money back which is apparently only 10% of the total annual viewing figure of 400million in 2015. Easy peasy!

Okay, okay, divide that by 20 races and the average viewing is 20 million but a) this is stats so I'm making them talk the way I want them too and b) Malone isn't buying for an instant gratification.

[wolfhound]

It appears that F1 will not be fully rid of CVC after this deal as they will still own 24.7% although they will no longer be in control.


http://classic.autosport.com/news/report.php/id/126097

[Armco Bender]

Americans buy F1,drivers might have to practice turning left a lot...

[Greem]

Originally Posted by bjohnsonsmith

So Murdoch has got F1, through the back door.

I'm a little puzzled by this. So far as I'm aware, Murdoch doesn't have his claws in Liberty - they've competed and done asset swaps in the past, and have bought/sold investment stakes to each other, but they are completely separate entities.

Unless (and it's happened before) I've missed something obvious.

[Mike Harte]

Originally Posted by bjohnsonsmith

So Murdoch has got F1, through the back door.

Well, Murdoch will be getting his man into the top job. Chase Carey is a long-time Murdoch executive, and is currently the Exec Vice-Chairman of 21st Century Fox, part of News Corporation. Whether the Dirty Digger will be able to exert i8nfluence is to be seen.

Time will tell whether this sale will be allowed to go through. It will need to receive EU approval, and at the moment the Competition Commissioner is not too happy about the FIA's shareholding, plus there is also the little matter of the formal complaint that Force India have lodged that is still being investigated.

One thing, though, that puzzles me. How did DeltaTopco manage to accumulate $4.1 billion of debt, considering that it is a cash cow, and generates huge profits every year? Have CVC and Mr E taking more out than was coming in?

[Richard C]

There was a piece on US public radio this morning about the deal. The summary was...

* US group buying F1.
* Americans not really familiar with F1. Will they try to expand the US market?
* It is sort of like NASCAR or Indycar, but more high tech, road courses vs. oval and with less passing.



Richard

[wolfhound]

Originally Posted by Mike Harte

Well, Murdoch will be getting his man into the top job. Chase Carey is a long-time Murdoch executive, and is currently the Exec Vice-Chairman of 21st Century Fox, part of News Corporation. Whether the Dirty Digger will be able to exert i8nfluence is to be seen.

Time will tell whether this sale will be allowed to go through. It will need to receive EU approval, and at the moment the Competition Commissioner is not too happy about the FIA's shareholding, plus there is also the little matter of the formal complaint that Force India have lodged that is still being investigated.

One thing, though, that puzzles me. How did DeltaTopco manage to accumulate $4.1 billion of debt, considering that it is a cash cow, and generates huge profits every year? Have CVC and Mr E taking more out than was coming in?

I know they originally took out loans to buy it but as far as I know they were paid off some time ago and new loans were taken out against DeltaTopco to use elsewhere.