Monza, Italy: Bernie Ecclestone’s control of Formula One, which has endured for 40 years, appears to be at an end, with speculation mounting that the sport is close to a takeover by Liberty Media.
The American company has been in talks with CVC Capital Partners, which owns a controlling 35.5% stake in F1, and a deal could be concluded within the next few days. That may well undermine Ecclestone’s position as the sport’s Chief Executive, with Eddie Jordan, a former team owner-turned-pundit, suggesting the 85-year-old could be gone by the Singapore Grand Prix in two weeks’ time.
However, when this was all put to Ecclestone after Sunday’s Italian Grand Prix he had a one-word reply. “Bulls**t,” he said.
The news of a possible takeover was welcomed by Toto Wolff, the head of motorsport at Mercedes and one of the most powerful figures in F1. He said: “If there is an investor that wants to buy the shares it is good news for Formula One. It was unbelievable out there — full grandstands — so, maybe it is good news that an American media company buys Formula One.”
Regarding Ecclestone, Wolff added: “I don’t know what happens in terms of management. Bernie has done an awesome job for 50 years and made it what it is. He has built an empire and we are all benefiting from that empire.
“That thing generates millions of live views and full racetracks like we had today, and one and a half billion in profits every year, so he has done an awesome job. What the future will show is whether there are things that can be improved or not, I don’t know, but I don’t want to speculate because this is just wrong.”
Ecclestone told the German magazine Auto Motor Und Sport that Liberty Media would transfer the first of two tranches of payment in the $8.5bn deal on Tuesday. Ecclestone was unclear about how his role would change if the deal went through but told the magazine: “I will do what I have always done. What role I play is my decision.”
Alongside CVC’s 35.5% stake, the US fund manager Waddell & Reed holds a 20.9% stake in F1, while Ecclestone’s share stands at 5.3% and his Bambino Trust has another 8.5%.
Removing Ecclestone from F1 could involve difficult negotiations. Even though some of his control has been dissipated by the deals he has made with individual teams, he remains the most important single figure in the sport.
Liberty has been considering a move into F1 since 2014. RSE Ventures, the owner of the Miami Dolphins NFL team, teamed up with Qatar’s sovereign wealth fund to make a separate bid since then and Sky TV has frequently been linked with the sport. Things continue to move in the drivers’ market.
Canada’s Lance Stroll, a European F3 driver, has become a favourite to replace the retiring Felipe Massa at Williams. They were keen to sign Sergio Perez but the 26-year-old says it is “very unlikely” he will leave Force India this season. The Mexican driver is expected to reveal his plans before Singapore.
— Guardian News & Media Limited, 2016
