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American Billionaire Has Taken The Wheel At Formula 1


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#1 gliebzeit

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Posted Sep 08 2016 - 07:35 AM

John Malone's Liberty Media has agreed to buy the iconic racing series in a deal that values it at $4.4 billion.

Liberty (LMCA), which has a stake in SiriusXM and the Atlanta Braves, plans to carry out its takeover from European private equity firm CVC Capital Partners in two steps. The first is a cash payment of $746 million for an initial 18.7% stake in F1.
Once regulatory approval has been secured, Liberty will take full control of F1. It will also assume its debt, lifting the overall transaction value to $8 billion.

F1 events are staged at some of the most storied courses in motor-racing history -- Silverstone in Britain, Spa in Belgium, Monza in Italy and on the streets of Monaco.
The sport has long attracted premium advertisers in Europe, but it has failed to find an audience in the U.S.

The series returned to the United States in 2012 with a race in Austin, Texas. But plans for an event in the New York City area never got off the ground -- the latest in a series of expansion misfires.

F1 also faces worries over the strength of its business in Europe, where younger audiences are increasingly turning to other sports. Much of F1's future growth may come from Asia, thanks to races staged in China, Singapore, Japan and Malaysia.

Liberty said it has brought on former top 21st Century Fox executive Chase Carey as chairman of the race series. It also said that Bernie Ecclestone, the sport's colorful chief executive, will stay in his current role.

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Edited by gliebzeit, Sep 08 2016 - 10:38 AM.


#2 leon_90

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Posted Sep 08 2016 - 08:19 AM

"It also said that Bernie Ecclestone, the sport's colorful chief executive, will stay in his current role."

"Cambiare tutto per non cambiare niente"
Change everything so to leave everything like it was

#3 JonnyA

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Posted Sep 08 2016 - 11:50 AM

Can't be worse than CVC. All I want now is:
1. Get rid of 90% of the downforce
2. Allow people to buy live coverage online, race by race.
3. Stop allowing dictators to buy Grands Prix

#4 twinpotter

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Posted Sep 08 2016 - 01:01 PM

Get rid of technical razmataz
Stop drivers been too concerned on saving tyres and fuel.
Get rid of gimmicks like Drs.
Let the drivers drive. Yes safety first but lose those silly penalties,wheels off track,gravel traps instead of sleeping policemen curbs.
Let drivers fight for position.
Find a system to encourage new teams and teams at the back.
Share developments,start more testing and look at cutting running costs.
Stop billionaire barons sons buying their way into F1 and adopt John Surtees model of grabbing that natural talent off the street,regardless of status and get them into carts and hopefully later into motorsport.
Move away from the faceless tracks in the desert and get back to the heart of geographical areas,where motorsport is valued.
But above all get rid of the billy smart's circus attitude that operates and lives in F1 at present and while we're at it it's circus senile clowns and burocrats.
Hoping now for this new group to give us a fresh but cultured and classic breathe of fresh air back into F1 😃 🏁

TP:

Edited by twinpotter, Sep 08 2016 - 03:00 PM.


#5 Fat Rich

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Posted Sep 09 2016 - 06:23 AM

How have Bernie and CVC managed to get F1 into $4.1 billion of debt? :really: :idunno: :dontgetit:

#6 ginetto

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Posted Sep 09 2016 - 01:51 PM

His divorce maybe?....   :P

#7 John Woods

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Posted Sep 09 2016 - 03:52 PM

Good one, Ginetto.
:D


View PostFat Rich, on Sep 09 2016 - 06:23 AM, said:

How have Bernie and CVC managed to get F1 into $4.1 billion of debt? :really: :idunno: :dontgetit:

On a percentage basis, the more corporate debt, the more ROI.
So a CEO can take a company into debt as a way of manipulating (increasing) return.
If you want a 10 percent return, they can make it happen if the credit line will let them.
Otherwise the easiest way to do it is fire people.
:)

Edited by John Woods, Sep 09 2016 - 04:28 PM.


#8 gliebzeit

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Posted Sep 09 2016 - 06:22 PM

.... and we in the US have the potential of having a President that does that for a living.

#9 MECH

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Posted Sep 10 2016 - 01:42 AM

You mean it's for real?
I thought this years election was a trial for a new comedy series :think:

#10 John Woods

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Posted Sep 10 2016 - 04:58 AM

Was really just trying to convey, (aware I sort of didn't), that financing corporate assets with debt can be a good thing if it is reflecting efficient productive use of capital. Formula One is apparently very prosperous or it could not convince lenders to make the loans, which they would only do if their due diligence proved F1 capable of making the payments on time.

We could wonder whether F1 is all that financially healthy. Maybe CVC has already set F1 up for a fall, (bloated with too much debt), and these new guys are coming in to glean the spoils and try to salvage the underlying value. If that's the case there will surely be some big time very major changes and lots of loud howling about it.

Surely this transition of F1 ownership will take awhile, and it will take some time for them to get up to speed and a level of comfort in their new very unique role. No doubt they will have to rely on BE/CVC experience to keep things moving along as smooth as possible.

Liberty has proved so far they can put a good act together. Just guessing they have lots more cash and if they spend it well Formula One will get even better in the long run.

Edited by John Woods, Sep 10 2016 - 06:55 AM.





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