A date to watch out for…

CVC Capital Partners will be discussing its involvement in the Formula One group with its investors at a meeting of the firm’s advisory board on September 13. There will then be an annual meeting of investors the following day. It is reckoned that US pension funds and other institutional investors will be asking questions about the allegations being made to discover whether CVC Capital Partners knew anything about the goings-on and to establish what has been done since the stories came to light. CVC has not changed the management and has said almost nothing on the subject. The first answer is probably easier than the second as there has been no obvious action at all. The answers that CVC gives may have an effect on its ability to raise its next fund in 2012. It might also influence the future of some of the executives involved.

8 thoughts on “A date to watch out for…

  1. I don’t think they’ll change something, they’ve been laughing all the way to the bank without moving a finger for years. Their initial investement in F1 went close to 30 fold, maybe more.

  2. Oh, come on. There can be only one question surely which matters:

    How does CVC not end up holding an empty shell in 18 months?

    It’s a time bomb, and though i don’t think the cash money is such a big thing, the decisions leading up to it surely are. Can Bernie sell it again? Maybe that is why he is digging in. Unpleasant analogies come to mind, involving being forced to peddle drugs on a double down, paid back in kind. Only get such bad thoughts because there’s scarce few good ones flying around.

  3. Of course they will say they knew nothing, they left it all in Bernie’s hands. Then when Gribowksi (sinc) was charged they carried out their own investigation, found themselves clean and can provide copies of that report to the shareholders and if necessary to the police. CVC are teflon or PTFC. However it would make sense to get rid of this Ecclestone character who seems to be muddying the nice clean spring water.

  4. @John (Other John)

    “How does CVC not end up holding an empty shell in 18 months?”

    Do you mean the Concorde agreement?
    CVC purchased the F1 rights when there wasn’t a Concorde agreement in place to start with, it didn’t bother them then, and I doubt it would now.

  5. Formula One is going through a major transition, just like fifteen years ago.

    The ’empty shell’ analogy has merit; it’s as if all the interested parties are stood around this ’empty shell’ discussing what to do next…

    What we don’t want if F1 slipping down the ranks of world motorsport.
    F1 has an incredible global audience with twenty races across five continents
    for nine months. Just enough time to make a baby!

  6. Karen,

    point taken. Thing is i was aiming for emphasis. CVC came in to mop up another mess, and scored a deal. Absolutely everything was going in their favor i think at the time, behind the scenes. I like bargains too. I just think that rolling over this deal still requires Bernie to be on absolute top form. I’m far less sure he’s got that form than a few years ago. More important than Concorde, is the man. Who no longer has his sidekick, to boot. A recently never happened break from work (second attempt this year, but this time with quite practical reasons) has made me determined i shall know when i can exit business life. I always paid lots of attention to BE not so much because i am a fan, or because i respect his business chops, but because who i work with think me a overly controlling facicisti in my work. So i got a good idea personally, of how things go when you have fantastical ideas and they all have to go via you. Presently i desire just a little escape, and know how dangerous it is to even hint at such a desire in that situation . . If my analysis is correct, then BE will be upping his game again. But what if he just gets fed up? I have a publisher pal same age as Bernie, and Angus my mate is really all over the place trying to suss out the idea he ought to wind down a bit.

    The time bomb i think is human, not financial. Good point, CVC will plough on, but it’s not what i am watching.

    all best,

    – john

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