Saturday, May 28, 2011

F1 would be better off with various owners?

Rupert Murdoch is part of a consortium, F1 buy, but would be good for the sport?
It seems not to make that formula 1 is running, the sport is practically a license to print money. But the team owners, mechanics, drivers and fans would be better off if someone else was responsible? A group of investors seems to think.

Last year, the formula one reports administration that its increased annual revenue to over $1 billion and only, his popularity appears to be increasing.


The action of this season was access has, is it five world champion now compete for the title and new tracks in India, Russia and the United States built


It is not hard to see why it would be an attractive investment, but, if it is not for sale, it is a moot point.


This is the position of CVC capital partners, one of the world's largest private equity firms and the current owner of formula one.


You have recognized a concept of Exor News Corporation Consortium that is "friendly and at the preliminary stage", but note that F1 is not currently on the market.


"Any investment in the formula 1 requires the CVC agreement and must demonstrate that it is in the interest of the sport and their stakeholders."


Of course, everyone in the business know that everyone has a price and the friendly approach and warm rebuff leaves room for negotiations in the future.


But it can also sweat, that this is a strategic manoeuvre, and the name behind the approach have ulterior motives. Although F1 a cash cow, not everyone thinks, that they get a fair slice of the pie. Many believe that team sponsors are underexposed, and therefore stand.


In addition, it is argued, CVC takes revenue without reinvesting in the sport. These needles especially the F1 the longest existing patron - Ferrari, who also fear they forced, technology develop she may want to use ultimately road in their cars.


It happened just like that Agnelli, a powerful dynastic family is one of the names behind the Consortium, ensures the Ferrari.


It's just so that the agreement that binds Ferrari and other 11 F1 teams to CVC - the Concorde agreement - is up for renegotiation at the end of next year.


Should one materialize solid bid always there are reasons to think it would get very far. Keep in mind that the European Commission NewsCorp's purchase of Manchester United and this acquisition is blocked for 12 teams, not just one.


In addition, why would the other eleven teams race in a series of one of their rivals, Ferrari controlled?


But they go along with it, more to the negotiating table next year use it gives them all could be a bit interested.


Abraham Lincoln said, that you all everyone please can not at the time, but who is to say that there are no better way of doing business as the current F1 model?


It is a debate that some could have run more round.


source:Cnn-Sport

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