F1 to be sold this year

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owenmahamilton
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F1 to be sold this year

Post by owenmahamilton »

I wonder if this has something to do with the possible EU investigation:

http://www.bbc.co.uk/sport/0/formula1/34460582

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Re: F1 to be sold this year

Post by Zoue »

Red Bull?

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Re: F1 to be sold this year

Post by Flash2k11 »

You have to look at the bigger picture regarding the EU stuff.... I said in that thread I wouldn't be suprised in Bernie didn't give his blessing to the teams to do it. Im sure any new buyer would be a lot happier if these separately negotiated contracts costing a few hundred mil were torn up by an outside body.
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Re: F1 to be sold this year

Post by Blake »

Flash2k11 wrote:You have to look at the bigger picture regarding the EU stuff.... I said in that thread I wouldn't be suprised in Bernie didn't give his blessing to the teams to do it. Im sure any new buyer would be a lot happier if these separately negotiated contracts costing a few hundred mil were torn up by an outside body.


bernie certainly would love to "save" several million or to make it more attractive to a future buyer... throwing teams under the bus, so to speak, would certainly not voilate his "morals"... he does it to the tracks with disgusting frequency.
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Re: F1 to be sold this year

Post by j man »

Flash2k11 wrote:You have to look at the bigger picture regarding the EU stuff.... I said in that thread I wouldn't be suprised in Bernie didn't give his blessing to the teams to do it. Im sure any new buyer would be a lot happier if these separately negotiated contracts costing a few hundred mil were torn up by an outside body.

Actually this was suggested in Dieter Rencken's column in F1 Racing magazine a few months back. This was based on the rumours that Bernie is unhappy with the current arrangement with CVC and has been looking for a way to convince them to sell. Seems quite plausible to me

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Re: F1 to be sold this year

Post by Flash2k11 »

j man wrote:
Flash2k11 wrote:You have to look at the bigger picture regarding the EU stuff.... I said in that thread I wouldn't be suprised in Bernie didn't give his blessing to the teams to do it. Im sure any new buyer would be a lot happier if these separately negotiated contracts costing a few hundred mil were torn up by an outside body.

Actually this was suggested in Dieter Rencken's column in F1 Racing magazine a few months back. This was based on the rumours that Bernie is unhappy with the current arrangement with CVC and has been looking for a way to convince them to sell. Seems quite plausible to me


I'd imagine Bernie would just be covering his own bases in this scenario... if all the teams have signed seperate deals that they are all happy with (for now) then the need for the middleman is greatly reduced if you can keep these deals rolling for a long enough period of time. Even 5 years without needing Bernie to keep the teams in line would be enough to marginalise him long enough for old age to do the rest. If the teams are beating down the doors and bringing the EU with them though, most investment people would be quite happy to let someone else take the grief and do the dirty work....
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Re: F1 to be sold this year

Post by sandman1347 »

I find the notion that Bernie would be kept on to head up the commercial side of things to be somewhat alarming. Any new buyer with sense should get rid of that old dinosaur who has recently said that "F1 doesn't need to worry about the young audience or social media". The sport is being run by leadership that is just leaving money on the table to be frank. New leadership would see skyrocketing revenues IMO.

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Re: F1 to be sold this year

Post by specdecible »

So who owns F1 currently? CVC with 35.5%? Are they really going to be selling their own stake in F1 or are they kicking someone/s else out to make room?
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Re: F1 to be sold this year

Post by Remmirath »

Interesting. Wasn't this, or a very similar rumour, going around at the end of last year or the beginning of this year? It could be that they're moving forward with whatever deal was in the works then, if so, or it could simply be another rumour. The possible EU investigation does actually make it seem more likely that it isn't merely another rumour.

sandman1347 wrote:I find the notion that Bernie would be kept on to head up the commercial side of things to be somewhat alarming. Any new buyer with sense should get rid of that old dinosaur who has recently said that "F1 doesn't need to worry about the young audience or social media". The sport is being run by leadership that is just leaving money on the table to be frank. New leadership would see skyrocketing revenues IMO.

It is alarming... but not because he doesn't want to focus on social media. That's the last thing F1, or indeed anything that has any desire to be taken seriously, needs. New leadership could fix a lot of problems, such as the lack of ready availability of F1 broadcasts in many places, squeezing out older race venues, the uneven distribution of funds, the somewhat excessive restrictions on development, and so forth -- and there are certainly additional avenues of revenue that could be exploited, like releasing older seasons on DVD -- but I don't think that the young audience is any more of a concern than the audience as a whole.
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Re: F1 to be sold this year

Post by 2fast »

Even if F1 is sold to anyone this year, Bernie Ecclestone will remain as commercial chief. And that means it won't bring too many changes to F1, will it?
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Re: F1 to be sold this year

Post by dizlexik »

2fast wrote:Even if F1 is sold to anyone this year, Bernie Ecclestone will remain as commercial chief. And that means it won't bring too many changes to F1, will it?

It depends. Firstly Bernie will no doubt do what new owners want. For example if F1 is bought by Sky, Sky might be more interested into making the sport more attractive and as a result keep classic F1 tracks, while another investment fund would mean F1 would remain strictly cash cow and GPs like Sochi or Azerbaijan. Secondly Bernie expects to stay, but nobody else said he will stay.
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Re: F1 to be sold this year

Post by DaveStebbins »

The analysis from Andrew Benson in the second half of that article is spot on. This is just Bernie being Bernie. Believe it when you see it.

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Re: F1 to be sold this year

Post by Martin K »

BE does not put something "out there" without a reason, this is typical Bernie PR where the real message is not always the headline.

In this case it seems to me that the message is to CVC and partners, also to any potential future investors, is that whoever has financial control of F1 - Bernie intends to stay around.

What is of interest is why BE feels the need to get that message out and why now ?

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Re: F1 to be sold this year

Post by Nosebuckle »

Martin K wrote:BE does not put something "out there" without a reason, this is typical Bernie PR where the real message is not always the headline.

In this case it seems to me that the message is to CVC and partners, also to any potential future investors, is that whoever has financial control of F1 - Bernie intends to stay around.

What is of interest is why BE feels the need to get that message out and why now ?



:thumbup: If BE was really indicating the F1 wold be sold this year, he wouldn't be saying as much. Seems maybe there isn't much serious interest so perhaps he's trying to gin up support for the idea. After all, CVC isn't going to let their stake go cheaply, particularly when BE has been so (unfortunately) successful at squeezing as much short-term benefit from the sport. Of course, the elephant in the room is the fact that he's nearly 85 and this song and dance won't be going on forever, one way or another.

Of course, there's no guarantee that the new managers will be any better than what we've got.

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Re: F1 to be sold this year

Post by sandman1347 »

Remmirath wrote:Interesting. Wasn't this, or a very similar rumour, going around at the end of last year or the beginning of this year? It could be that they're moving forward with whatever deal was in the works then, if so, or it could simply be another rumour. The possible EU investigation does actually make it seem more likely that it isn't merely another rumour.

sandman1347 wrote:I find the notion that Bernie would be kept on to head up the commercial side of things to be somewhat alarming. Any new buyer with sense should get rid of that old dinosaur who has recently said that "F1 doesn't need to worry about the young audience or social media". The sport is being run by leadership that is just leaving money on the table to be frank. New leadership would see skyrocketing revenues IMO.

It is alarming... but not because he doesn't want to focus on social media. That's the last thing F1, or indeed anything that has any desire to be taken seriously, needs. New leadership could fix a lot of problems, such as the lack of ready availability of F1 broadcasts in many places, squeezing out older race venues, the uneven distribution of funds, the somewhat excessive restrictions on development, and so forth -- and there are certainly additional avenues of revenue that could be exploited, like releasing older seasons on DVD -- but I don't think that the young audience is any more of a concern than the audience as a whole.

Yeah it's basically the question of whether to focus on extracting money from fans before allowing them to view F1 or whether to make it as easy as possible for fans to view F1 and extract money from advertisers. IMO, in this day and age, almost all sports would be better off with the second approach. You want your sport to be mainstream; not niche. You want a lot of eyes on the screen every week. From there, it's easy to generate ad revenues (which makes up the majority of overall revenue).

Bernie has been very slow to adapt to technological change over the last 10-15 years. It's something that you might expect from a man in his 80s. It was embarrassing how long it took for F1 to be offered in HD and the fact that there are still inadequate streaming options and no social media presence is appalling. Like it or not, there are a lot of people today who like to check up on their sports and news via Twitter or some other social media platform. To ignore that whole medium in this day and age is just massively foolish. You're leaving money on the table for something that you could provide at very low cost. There are also a lot of people who do not subscribe to a traditional cable service. Again, to not have an adequate "over the top" streaming option for your sport in this day and age is simply leaving money on the table.

It has become painfully obvious that Bernie is not capable of growing this business any further than he has. That shouldn't take away from his massive contribution to F1 in the 80s and 90s; where he really modernized it and helped it grow into what it became. The bottom line though is that part of being a good leader is knowing when to step aside and he has failed miserably in that respect.

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Re: F1 to be sold this year

Post by Remmirath »

It sounds like this might not actually be happening after all, although of course it's very hard to say which is the deflection and which is the truth.

sandman1347 wrote:
Remmirath wrote:Interesting. Wasn't this, or a very similar rumour, going around at the end of last year or the beginning of this year? It could be that they're moving forward with whatever deal was in the works then, if so, or it could simply be another rumour. The possible EU investigation does actually make it seem more likely that it isn't merely another rumour.

sandman1347 wrote:I find the notion that Bernie would be kept on to head up the commercial side of things to be somewhat alarming. Any new buyer with sense should get rid of that old dinosaur who has recently said that "F1 doesn't need to worry about the young audience or social media". The sport is being run by leadership that is just leaving money on the table to be frank. New leadership would see skyrocketing revenues IMO.

It is alarming... but not because he doesn't want to focus on social media. That's the last thing F1, or indeed anything that has any desire to be taken seriously, needs. New leadership could fix a lot of problems, such as the lack of ready availability of F1 broadcasts in many places, squeezing out older race venues, the uneven distribution of funds, the somewhat excessive restrictions on development, and so forth -- and there are certainly additional avenues of revenue that could be exploited, like releasing older seasons on DVD -- but I don't think that the young audience is any more of a concern than the audience as a whole.

Yeah it's basically the question of whether to focus on extracting money from fans before allowing them to view F1 or whether to make it as easy as possible for fans to view F1 and extract money from advertisers. IMO, in this day and age, almost all sports would be better off with the second approach. You want your sport to be mainstream; not niche. You want a lot of eyes on the screen every week. From there, it's easy to generate ad revenues (which makes up the majority of overall revenue).

Bernie has been very slow to adapt to technological change over the last 10-15 years. It's something that you might expect from a man in his 80s. It was embarrassing how long it took for F1 to be offered in HD and the fact that there are still inadequate streaming options and no social media presence is appalling. Like it or not, there are a lot of people today who like to check up on their sports and news via Twitter or some other social media platform. To ignore that whole medium in this day and age is just massively foolish. You're leaving money on the table for something that you could provide at very low cost. There are also a lot of people who do not subscribe to a traditional cable service. Again, to not have an adequate "over the top" streaming option for your sport in this day and age is simply leaving money on the table.

It has become painfully obvious that Bernie is not capable of growing this business any further than he has. That shouldn't take away from his massive contribution to F1 in the 80s and 90s; where he really modernized it and helped it grow into what it became. The bottom line though is that part of being a good leader is knowing when to step aside and he has failed miserably in that respect.

I definitely agree with all of what you're saying except for the social media part, and that I must grudgingly conceed does have some merit from a marketing angle simply from the sheer number of people who seem drawn to it like moths to the flame. I'll probably never like it, I rather detest it, but that doesn't change the fact that absurd numbers of people appear to love it -- and I must admit that you can't pass that up when you're trying to get as many people interested in something as you can, and keep them interested as long as possible. I'll never agree with people who say that every team and every driver must have a social media presence (that should be their choice); but on a sport-wide, advertising level, it's probably (unfortunately) a good idea in this day and age. It definitely shouldn't be the case where one needs to go to social media to get news or check up on things, though; there are also still a good deal of people who would rather avoid it and will unless it is necessary that they don't (myself very definitely included :-P).

Bottom line is that what you really need are viewers, however you're getting them, and then you go from there in making a profit. People are much more likely to fork over additional money when they're already following F1 rather than as an entry fee to begin watching. Ad revenue, DVDs and net archives of back seasons going as far back as is feasible, streaming services, ad-free viewing options, all of those make a lot more sense than getting people to pay more to watch initially -- both from the viewer's side and from the F1 management side.
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Re: F1 to be sold this year

Post by Alex777 »

China Media Capital set to buyout F1 for $8.5bn

http://www.thisisf1.com/2015/10/17/chin ... for-8-5bn/

Following the Qatar and NFL owner £5bn bid in last June, F1 boss Bernie Ecclestone told Media “three or four” bidders had emerged to open talks with Donald Mackenzie, CVC’s chairman.

“I have no idea whether any of these people have got closer with this, but CVC are in the business of buying and selling companies. They are very happy with F1 and Donald is not an enthusiastic seller, but their business is selling everything has a price,” Ecclestone said.

Now the Chinese investors clinch pole position with (£5.5bn) for F1 Future!

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Re: F1 to be sold this year

Post by HS Thompson »

Alex777 wrote:China Media Capital set to buyout F1 for $8.5bn

http://www.thisisf1.com/2015/10/17/chin ... for-8-5bn/

Following the Qatar and NFL owner £5bn bid in last June, F1 boss Bernie Ecclestone told Media “three or four” bidders had emerged to open talks with Donald Mackenzie, CVC’s chairman.

“I have no idea whether any of these people have got closer with this, but CVC are in the business of buying and selling companies. They are very happy with F1 and Donald is not an enthusiastic seller, but their business is selling everything has a price,” Ecclestone said.

Now the Chinese investors clinch pole position with (£5.5bn) for F1 Future!


F1 is on free TV in China. Maybe that will spread to the rest of the world if China owns F1.

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