The Formula One Administration Ltd accounts for 2010, which have just been published, are interesting for a number of reasons, although as always with such statements it is dangerous to make guesses about what has been happening as accountants reveal only what they want to reveal and one is never sure what they are up to. What is revealed, however, is that all the commercial rights to the F1 World Championship have been transferred to a new company called Formula One World Championship Ltd (FOWC). This will, in theory at least, now oversee all commercial activities for the next 100 years. All the F1 contracts will be transferred to this entity. FOWC is a sister company of Formula One Administration, and is wholly owned by SLEC Holdings, a Jersey company.
This is turn is owned by (take a deep breath) Alpha Prema UK Ltd, which is owned by Alpha D2 Ltd, which is owned by Delta 3 (UK) Ltd, which is owned by Delta 2 (Lux) Sarl of Luxembourg, which is owned by Alpha Topco Ltd (Jersey), which is owned by Delta Topco Ltd (Jersey).
This is owned by a number of parties, including 63.3 percent which belongs to various CVC funds; LBI Group Inc (a Lehman Brothers company), which owns 15.3 percent; the Ecclestone Family’s Bambino Trust, which owns 8.5 percent; Bernie Ecclestone, who personally owns 5.3 percent; JP Morgan Whitefriars Inc, which owns 3 percent; Churchill Capital Ltd which owns 0.7 percent and then an assortment of employees and directors, who between them own 3.6 percent of the business.
There were some curious transactions included in the last year, not least the sale of various companies to FOA director Sacha Woodward Hill for reasons that are not entirely obvious. She acquired Petara Ltd, the holding company of Formula One Management for £1,000 in September. Prior to that sale Petara had paid out $28.7 million as a dividend and thus had no business and no assets. It was later dissolved. It is not clear why Woodward Hill would have bought such a company. However, it is worth noting that Petara is the company in which Munich investigators have been showing a certain amount of interest in recent months.
The other point of interest was that FOA sold all of its assets to a subsidiary Formula One Management Ltd for $102 million. It sold a company which runs Istanbul Park to FOWC for $1, which meant writing off $11 million. The company paid out a dividend of $1.5 billion. and collected licence fees from Allsport Management and its various hodlings company totalling around $70 million. Turnover went from $1063 to $1082 from 1063 (up two percent) and team payments increased from $544 to $658, because of the terms of the 2009 Concorde Agreement, which included $30 million to the three new teams. As a result FOA’s profits went from $420 million to $341 million.
The company will now be wound down as FOWC takes over.