Official: Murdoch Wants to Buy F1

[John S]

If I understand Bernie correctly, the EU deal is specifically about keeping F1 on free-to-air TV. The would be counter to what Elliot Carver, I mean Rupert Murdoch, seems to have in mind.

I think the EU rules are about quite the reverse, they are about keeping competition open for broadcasters to bid the most for the rights to show this sport, or any other. Supposedly it's to make sure any sport series is not screwed for money by unfair practices and at the same time allowing free competion amongst TV companies. The EU rules can't make a distinction between 'Free to air' or 'subsciption(Pay Per View)', or between cable, satellite, internet or aeriel broadcasts.

 I cite the English Premier football league as a case study, Murdoch's Sky TV has it sewn up because they out bid everyone else. However Sky had to take a gamble in the early days that they would get enough PPV subscribers. A Sky competitor, Setanta, went belly up  when the took on too many commitments for sports series but failed to get enough subscribers.

It just so happens that Murdoch's possible ownership of FOM could make open competition impossible amongst TV broadcasters, at least Bernie think's so. The big worry for me though is that Murdoch knows all to well about EU, and other nations, competion rules and broadcasting laws. I reckon he has something up his sleeve or why bother going to all the touble and expense with his high profile ostensible takeover approach???     


   

[cosworth151]

It sounds like Bernie is talking about a deal between FOM and the European Commision, not general rules:

"I'm sure the European Commission wouldn't let it (the sale of Formula 1 to Murdoch) go through because our agreement with them was to keep Formula 1 on free-to-air television," said Ecclestone.

http://www.f1sa.com/index.php?option=com_content&view=article&id=28783:f1-bernie-ecclestone-ec-would-block-rupert-murdoch-formula-1-take-over&catid=1:f1&Itemid=157

[John S]

I think Bernie is talking about the last time F1 was taken over and the assurances he and the buyers gave at that time, or else it's an agreement that he struck when the money was passed over to the FIA for the 100 year deal. Bernies agreements cannot prevent another company making a bid to buy FOM and the EU will have to look at the merits of any takeover as a new case.

The one thing certain about legal matters is that there is no certainty. Any government and legislature can always change the law, even the constitution to an extent if they so wish.

 

[lkjohnson1950]

Certainly, sponsorship deals are contingent on people seeing the logos on the cars. PPV would reduce the audience, making it less attractive to many companies. PPV would have to generate enough money for the teams to make up for it.

Lonny