Bernie Ecclestone would like to buy back F1
How to keep a position as a director when everything is done to ensure you're no longer in charge? Buy out the company. That would be Bernie Ecclestone's plan with F1.
F1 as we know it today is the life’s work of Bernie Ecclestone, and for him, the word retirement has no meaning. For several years, CVC Capital, the main shareholder of F1, has been looking to sell its stake after making an excellent financial transaction since its arrival in 2006.
The initial plan of the investment fund was to sell its stake through a listing on the Singapore Stock Exchange. However, Bernie Ecclestone’s legal troubles in Germany made this prospect highly unlikely. He turned to an alternative strategy, namely an over-the-counter sale. This allowed other funds to enter the F1 capital.
Today, despite his trial in Munich and his 84 years, Bernie Ecclestone believes he can regain his shareholder power, as he reveals to the Daily Express: « I have spoken to Donald Mackenzie (Editor’s Note: the chairman of CVC) and I am studying it. It’s possible, even if one or two other companies are interested and I don’t intend to enter a bidding war. My age doesn’t prevent it. I feel the same as I did 40 years ago. Our company has been a very good investment for CVC and it would be a very good investment for me or for someone else.»
Nevertheless, this project is far from being realized since he is currently already very busy with his trial in Germany, as he is the first to acknowledge: « I have two jobs at the moment. The first is my main occupation, and I hope the other is just a part-time job in Munich. I know that prisons are filled with people who say they are innocent. That’s why I go to Germany every week because I know I am innocent and want to clear my name. I don’t know what the verdict will be, but there’s no point in worrying. I’d rather bad things not happen. I like to think that I can continue doing what I do as long as I am able. Being locked in prison worries me much more than losing control of F1.»
As often, one should not take at face value the statement of the F1’s chief financier about his intentions to buy the sport. He wants to show that he remains on the offensive and that he should not be removed from the equation earlier than absolutely necessary. His statement could also serve to raise the stakes among the various candidates for the buyout.
According to information from Auto Motor und Sport, four candidates are already lined up to take over the 35% of the Luxembourg fund. We find Ferrari, which had already made an initial approach in 2011, and Red Bull, which already owns two teams, but also another Luxembourger, Gérard Lopez of Lotus, while John Malone of Discovery Communications and Liberty Media has not completely abandoned his project.
The coming months should therefore be full of rumors and speculations about the future of F1. Meanwhile, most of the grid’s teams are struggling to survive…
With the participation of www.Racingbusiness.fr
