“As motor sport’s governing body and regulator 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”.
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Formula One entered a new era on Wednesday as U.S. billionaire John Malone’s Liberty Media agreed a takeover that values the sport at US$8 billion and raises questions over the role of its colorful, long-time mastermind, Bernie Ecclestone.
Liberty Media’s interest has always been the subject of rumors circling Formula One and longtime CEO Bernie Ecclestone, who also owns a minority stake in the open-wheel racing league. “We believe it can reach its full potential under the leadership of Chairman Chase Carey and Liberty”. “Clearly Formula 1 has been an enormous success much to the credit of Bernie Ecclestone, who has led this business for decades”.
“I can’t really think of a better buyer”, said motorsport marketing executive Zak Brown, the chief executive of CSM Sport&Entertainment.
But in the six years through 2014, global Formula One viewership slipped to 425 million from 600 million.
Liberty Media, which is owned by American media mogul John Malone, and its sister companies have interests that span from baseball’s Atlanta Braves to Virgin Media, and Malone owns shares in ITV, Eurosport and Formula E.
Liberty Media is the world’s largest global television and broadband company, operating in more than 30 countries in Europe, Latin America and the Caribbean through a series of different brand names.
Speaking following the formal announcement of the deal, incoming Formula One Group Chairman Chase Carey pointed to the opportunities for growth within the sport.
Other broadcasters enjoy the security of longer-term deals, with Sky in Britain having the British rights until 2024. Evolving the race calendar.
Montreal, the Texan city of Austin, and Mexico City are the three current venues in North America but an east and west coast city in the United States would be commercially attractive.
In a deal that ends years of speculation over Formula One’s future, Liberty said it had struck an agreement to buy out the parent company from CVC Capital and had already acquired a minority stake of 18.7 percent.
Carey told investors he planned to build Formula One’s fan base by “telling the Formula One story” and expanding its digital presence.
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“It’s a very, very exciting possibility”.
