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TSN: F1 Being Sold to U.S. Firm for $4.4 billion
#1
F1 being sold to U.S. firm for $4.4 billion

http://www.tsn.ca/f1-being-sold-to-u-s-f...n-1.562572

LONDON — Formula One is being bought by Liberty Media, a U.S. company that invests in entertainment and sports, for $4.4 billion.

Liberty Media Corp., which is controlled by 75-year-old tycoon John Malone, has ended years of uncertainty about the ownership of the auto racing series with Wednesday's deal.

There will be continuity, with long-standing commercial chief Bernie Ecclestone remaining the chief executive officer of F1. But the 85-year-old Ecclestone will have to work under a new chairman: Chase Carey, the executive vice chairman of Rupert Murdoch's entertainment conglomerate 21st Century Fox.

Formula One has hundreds of millions of fans, and Carey said in a statement that he sees opportunity to develop it.

Liberty said it has initially purchased a minority stake of 18.7 per cent for $746 million. A buyout is expected to be completed by March 2017. F1's biggest current shareholder, investment fund CVC Capital Partners, and the other sellers will still own 65 per cent of Formula One Group stock, and retain board representation. But CVC, which first invested in F1 in 2005, is ceding control of the sport to Malone's Liberty, which has all the voting shares.

The company says the deal values Formula One at $8 billion, including debt.

Malone also owns Major League Baseball team Atlanta Braves and has stakes in radio company Sirius XM and European telecom company Liberty Global, U.S. cable company Charter and various cable-TV companies.

"There's lots of new things we are going to have to start putting into place, bringing them up to speed ... I am very, very happy that they can come in and do things (for the sport)," Ecclestone told The Associated Press.

Ecclestone is optimistic Liberty has the resources, expertise and outlook to drive the growth of F1 — particularly in the United States.

"I hope they do a lot because they are American and have had dealings in television in America for a long time," Ecclestone said. "They have dealings with a lot of sponsors because of their TV networks and social media which we haven't done (as much) in the past."

The sport returned to the U.S. in 2012 after a five-year absence, with Austin hosting the race under the current deals.

"I have been trying to do things in America for years but not very successfully," Ecclestone said. "We tried, but maybe they are the people that can get it done."

Asked about challenging NASCAR's supremacy in the U.S., Ecclestone said: "They are the people that should be concerned, of course."

At the time of the sale, CVC had a 35.5 per cent stake in F1, followed by U.S. fund manager Waddell & Reed with slightly more than 20 per cent. Ecclestone has 5.3 per cent stake in F1 but his family Bambino Trust has a further 8.5 per cent, rounding up his involvement up to about 14 per cent.

___

Tali Arbel contributed from New York.
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#2
I know very little about racing but that does not seem like enough.
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#3
(2016-09-08, 04:28 PM)Bong13 Wrote: I know very little about racing but that does not seem like enough.

IMO, F-1 has been on the down side the last few years. This new group should be able to turn it around. I would love to see a race added at Watkins Glenn NY and Canadian Tire Motor Park that Ron Fellows is running.

As for $4.4 Billion likely an over payment. Based on this sale I wonder what the NASCAR Brand is worth today, $8-9 Billion?
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#4
NASCAR can't even get a new sponsor to take over, I'm not sure they are worth as much as you think. TV ratings and attendance are way down from 15 years ago or so when it was arguably at it's peak.


It's too bad, Sprint has done a fantastic job IMO in the Cup series, I'd like to see them continue.
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#5
(2016-09-08, 06:34 PM)thebest41587 Wrote: NASCAR can't even get a new sponsor to take over, I'm not sure they are worth as much as you think. TV ratings and attendance are way down from 15 years ago or so when it was arguably at it's peak.


It's too bad, Sprint has done a fantastic job IMO in the Cup series, I'd like to see them continue.

Agree with your take. Did not realize no title sponsor as yet for next season ! Yikes!
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#6
F1's problems is more the FIA's responsibility imo, since they are the ones who make the rules and specs of the cars.  I don't see the new owners making much of a difference, especially with Bernie Ecclestone still running things.


(2016-09-08, 04:28 PM)Bong13 Wrote: I know very little about racing but that does not seem like enough.

They didn't purchase all shares.  The articles says they value it at $8 billion.
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(2016-09-08, 11:04 PM)Gus Wrote: F1's problems is more the FIA's responsibility imo, since they are the ones who make the rules and specs of the cars. 


The problem is that the FIA really just bows to the will of F1 in the end.  Every time the FIA does something F1 doesn't like a bunch of teams threaten to break away and form their own championship and the FIA caves.
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(2016-09-28, 08:43 PM)Andrew Wrote:
(2016-09-08, 11:04 PM)Gus Wrote: F1's problems is more the FIA's responsibility imo, since they are the ones who make the rules and specs of the cars. 


The problem is that the FIA really just bows to the will of F1 in the end.  Every time the FIA does something F1 doesn't like a bunch of teams threaten to break away and form their own championship and the FIA caves.

Not really.  It's been years since teams threaten to do that, and most people didn't take them serious.  All you have to do is look at what happened to IndyCar to know how much of a mistake that would be.  It was mostly about money anyways.

The FIA brought in the hybrid engines to make F1 more green at the hope of enticing more manufactures to join.   The teams didn't like it and nor did the fans.  I've heard Bernie complain about them numerous times as well. 

To me, F1's biggest problems are the limits on engines and gear boxes (and the inane penalty system with it), the ban on refueling, and the tires degrading too fast.  There's too much car management going on.
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#9
How long before Hamburger shaped cars are whizzing around the track with Lewis Hamilton dressed as Hamburglar?

One of the great things about F1 is its never really given a **** about the US market, and simply will not bow to it. That will now change I think.
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(2016-09-29, 12:34 PM)Gus Wrote:
(2016-09-28, 08:43 PM)Andrew Wrote:
(2016-09-08, 11:04 PM)Gus Wrote: F1's problems is more the FIA's responsibility imo, since they are the ones who make the rules and specs of the cars. 


The problem is that the FIA really just bows to the will of F1 in the end.  Every time the FIA does something F1 doesn't like a bunch of teams threaten to break away and form their own championship and the FIA caves.

Not really.  It's been years since teams threaten to do that, and most people didn't take them serious.  All you have to do is look at what happened to IndyCar to know how much of a mistake that would be.  It was mostly about money anyways.

The FIA brought in the hybrid engines to make F1 more green at the hope of enticing more manufactures to join.   The teams didn't like it and nor did the fans.  I've heard Bernie complain about them numerous times as well. 

To me, F1's biggest problems are the limits on engines and gear boxes (and the inane penalty system with it), the ban on refueling, and the tires degrading too fast.  There's too much car management going on.
There is...which is really apparent in the F1 game.

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(2016-09-29, 12:34 PM)Gus Wrote: To me, F1's biggest problems are the limits on engines and gear boxes (and the inane penalty system with it), the ban on refueling, and the tires degrading too fast.  There's too much car management going on.


That I can definitely agree with.
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