Formula One faces big shake-upFormula One faces its biggest shake-up in decades with the announcement on Wednesday that US cable TV mogul John Malone’s Liberty Media has agreed to take control of the cash-generating glamour sport.
The deal, which has an enterprise value of US$8 billion (N$112 billion) according to a company statement, heralds a new era for Formula One, a European-dominated sport that has long sought to break into the US market and win fresh audiences.
It could also accelerate the exit of 85-year-old Bernie Ecclestone, the Briton who has run the sport for nearly 40 years and built up a business with annual turnover of around US$1.9 billion (N$26.6 billion). Liberty Media said in a statement, which ended a long-running saga surrounding the sport’s ownership and potential flotation, that it was acquiring an initial 18.7% stake from controlling shareholder CVC Capital Partners.
The company hopes to complete a deal for the remainder by the first quarter of 2017.
The statement added that Chase Carey, the executive vice-chairman of Rupert Murdoch’s 21st Century Fox and a director of Sky News owner Sky Plc, will take over as chairman of the board of Formula One’s parent company with Ecclestone remaining as CEO.
“I greatly admire Formula One as a unique global sports entertainment franchise attracting hundreds of millions of fans each season from all around the world,” Carey said.
“I see great opportunity to help Formula One continue to develop and prosper for the benefit of the sport, fans, teams and investors alike.”
Ecclestone added that he welcomed the company into the sport and looked forward to working with them.
The deal will be subject to the approval of the International Automobile Federation (FIA), the governing body for Formula One and other global motorsport series, and European anti-trust regulators.
CVC acquired majority control of Formula One in March 2006 and has since recouped its money many times over with billions of dollars in revenues.
NAMPA/REUTERS