You can read, if you can be bothered, that the Formula One company says that it is going to go ahead with its planned flotation, despite the fact that there is no contract that binds all the players in the F1 circus together, and despite the possibility that the CEO of the company – the man who has been the motor of progress for the sport for more than 25 years – could theoretically be arrested within a matter of days.
These are the realities. People may say that a Concorde Agreement is coming soon; and that Bernie Ecclestone will not have to worry about the German justice system, but they have been saying that for more than a year and neither situation has really changed.
I am a great believer in Bernie Ecclestone and I like to think that Formula 1 people are smart enough not to destroy what is a very sound business if he is no longer there, but if I did not understand the sport and was looking in from the outside I would probably conclude that there are more than a few risk factors involved. And if my job was to invest other people’s money in businesses, I think I would choose other alternatives at the moment on the basis that if the whole thing does go horribly wrong I would have no credibility left.
Let us not forget that the FIA, which owns the rights to the Formula One World Championship is not happy with the money that is being made from its asset. The federation has only itself to blame for agreeing to such a deal 13 years ago, but there is nothing to stop the new generation in power trying to find a better solution if the opportunity arises. That is another risk factor that people seem to ignore. What happens if the contract between the FIA and the Formula One group includes a clause that allows the deal to be broken if there are criminal activities proven?
The bottom line in all of this is that CVC Capital Partners, which owns the Formula One business at the moment does not give a damn about the sport beyond it having been a great cash cow for them. They would drop it like a stone if they cannot sell it. The sport deserves better than that. What it does not want is to be a cash cow for another group of faceless people who don’t care.










