Formula One CEO Bernie Ecclestone says change of control could lead to his departure
Formula One Group (F1) chief executive Bernie Ecclestone has said he may step down if there is a change of ownership at the UK-based motorsport organisation, The Times reported. Ecclestone, when asked whether he would walk away from his long association with F1, suggested that new management would want to assert control. Ecclestone added that he would walk away if he did not like a new owner’s plans for the business.
The UK-based cable media group Liberty Global [NASDAQ:LBTYA] is expected to acquire a 10% stake in F1 from current controlling shareholder CVC Capital Partners for USD 800m (GBP 717m), the item said. The expected deal would clear the way for Liberty Global to take control of F1, the item said.
A 3 September newswire report said German’s Auto Motor Und Sport magazine reported at the weekend that Bernie Ecclestone said while attending the Italian Grand Prix on Saturday that he expected Liberty Media to make the initial payment for the USD 8.5bn F1 deal today, 6 September. A second payment would follow, the Reuters report said. This news service reported yesterday that Ecclestone described weekend press suggesting a deal had been agreed as unfounded, according to The Times.
A Sky News report on 5 September cited F1 insiders who said Colorado-based Liberty Media Corporation could announce an agreement to acquire a significant stake in F1 on 7 September. Sky News also reported on 26 August talks between CVC and Liberty Media Corporation regarding a possible acquisition by Liberty Media of a stake in F1’s parent company Delta Topco.
A report in The Times on 5 September also mentioned speculation that Liberty Media Group has agreed a deal to acquire an initial stake of 20% in F1 for GBP 1bn.
The Colorado-based entrepreneur John Malone holds stakes in both Liberty Media Group and Liberty Global, as previously reported.
It is thought that Malone plans to install 21st Century Fox vice-chairman Chase Carey as executive chairman at F1, which could lead to friction with Ecclestone, the Times report said.
The article went on to cite an unspecified source who said “the Americans” would seek help on managing F1 from Sacha Woodward-Hill, the legal adviser to Ecclestone.
Payment for Liberty Global’s acquisition of a 10% stake in F1 is pencilled in for Wednesday, 7 September, The Times reported. However, CVC chairman Donald Mackenzie said the deal had yet to be finalised, according to the report.
Separately, the article said European antitrust regulators are prepared to launch an investigation into claims of cartel behaviour at F1. It is believed that the European Union has sent letters to Ecclestone, CVC, the F1 teams and the motorsport's governing body FIA requesting information, the report said.
Ecclestone was informed of the EU investigation last weekend and said the inquiry could be disruptive to F1 for a couple of years.