Chase Carey, the former chief operating officer at 21st Century Fox, will serve as chairman of Formula One, succeeding Peter Brabeck-Letmathe, who will remain on Formula One’s board.
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Bob Fernley, deputy principal of the Force India team, hoped that would be the case: “We have a unique product in Formula One. now we can overlay on that an incredible sports marketing operation”, he said. Ecclestone, who ruled with much secrecy for four decades, was rarely inclined towards any kind of management in that way.
The deal, which has an enterprise value of US$8 billion according to a company statement, heralds a new era for Formula One, a European-dominated sport that has long sought to break into the USA market and win fresh audiences.
“So what do we see as the opportunity?”
“We acknowledge Liberty Media’s wide expertise in these fields and we look forward to working in close partnership with them in the future in order to further develop Formula One and bring it to new generations of motor sport enthusiasts around the world”, he said.
“Enhancing the distribution of content, especially in digital – now a very small percentage of revenue”.
A revised and probably expanded calendar that may include more races in Asia and the Americas could see this year s record 21-race schedule enlarged to a bumper 25 grands prix.
USA billionaire John Malone s Liberty Media, which says it has struck an agreement to buy out Formula One s parent company, wants to do all this without eroding the sport s exclusive brand value. Carey said adding F1 to that portfolio offers the company an “incredibly low-risk” business model due to its $9.3 billion of contracted revenue under long-term contracts that extend as far as 2026. Despite the big profits, some F1 teams are plagued by financial problems and the sport faces challenges to its fanbase and TV viewership, with its races often criticised as predictable.
“Formula One is a key player in the high-growth market for live, premium sports rights. There is an increasing demand from broadcasters, advertisers and sponsors who want access to F1’s mass global live audiences and attractive demographics”.
Upon completion of the acquisition, the Liberty Media Group will be renamed the Formula One Group and the ticker symbols for the Series A, Series B and Series C Liberty Media Group tracking stocks will be changed from LMCA, LMCB and LMCK to FWONA, FWONB and FWONK, respectively.
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Analyst Allan Nichols of Morning Star said the Formula One deal could help to strengthen Malone’s American Charter cable business.
