In one of the biggest deals in sports history, cable mogul John Malone’s Liberty Media conglomerate has agreed to acquire Formula One, the iconic motorsports business that has struggled to win fans in the US, for $4.4 billion.
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Under the leadership of legendary British entrepreneur Bernie Ecclestone, Formula One has grown rapidly since the 1970s, attracting broadcasting deals and corporate sponsors ranging from luxury watchmakers to fuel suppliers.
The United States now has just one round of the 21 race championship at the Circuit of the Americas in Austin, Texas, after a series of failed attempts to secure a permanent home over the years.
“F1 still poses a fantastic vehicle for brands looking to engage with not just avid fan bases, but a fan base which is truly global”, Geach said.
It was reported last month that Liberty Media were planning the acquisition of Formula One, which could change the landscape of the sport.
Carey, who joined the sport’s 85-year-old commercial supremo Bernie Ecclestone in answering questions, said there was a more passionate fan base in America than people realized even if it took time to build the audience. “We think our long-term perspective and expertise with media and sports assets will allow us to be good stewards of Formula One and benefit fans, teams and our shareholders”.
The takeover that values the sport at $8 billion has – crucially – been welcomed by the teams, with heavyweights McLaren on Thursday describing Liberty s move as “a positive step”.
The FIA itself has a 1 percent stake in the F1 Group, but also – as Liberty has acknowledged – the governing body has to approve any sale. “We’ll work closely and as partners and we’ll figure it out”.
Liberty will acquire 100% of Delta Topco, the parent of Formula One, using shares of its tracking stock, which falls under the LMCK ticker, Liberty said in a statement.
Carey said he and Liberty were excited by the prospects in “developing markets” in places like the Americas and Asia.
“Enhancing the distribution of content, especially in digital – now a very small percentage of revenue”.
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It could also accelerate the exit of 85-year-old Bernie Ecclestone, the Briton who has run the sport for almost 40 years and built up a business with annual turnover of around US$1.9 billion. While Formula One has struggled to crack the United States market, A it generated $1.3 billion from TV rights and other revenue sources including race-hosting fees in 2014, the most recent year available, according to filings at the UK’s Companies House.
