Is Qatar set to splash out on big F1 stake?

[John S]

Financial Times says yes. Will purchase get Qatar race Bernie vetoed?

Mind you price looks more than a tad on the high side so does it all make sense? 

Also, apparently, Qatar Investment Authority already owns 17% of VW group,  according to the report below from Motorsport.com:  --- So there's plenty here to keep all F1 fortune tellers & spin merchants happy with predictions of which brand will be joining F1.  

American investment company RSE Ventures is to join forces with Qatar to take a major investment in Formula 1, according to a report from the Financial Times.

 The article suggests that the two parties want to buy 35.5% of F1 from the CVC Group for a price of $7-8bn – and that the ultimate aim is for Qatar to own the whole of F1.

However, the report adds that no formal bid has been made, and due diligence is still being undertaken.

The suggestion is that the controversy surrounding FIFA and the 2022 World Cup has led to Qatar accelerating its F1 plans, which include hosting a Grand Prix.

Qatar Sports Investments is part of the Qatar Investment Authority, the country's sovereign wealth fund. QSI is best known for owning football team Paris St German, while intriguingly QIA also owns 17% of the VW Group – which has of course been eyeing an F1 involvement for years.

Courtesy Adam Cooper, master.motorsport.com/f1, Today.

[lkjohnson1950]

Can I hope just a little that the end of the Bernie years might be on the far, far horizon?

[John S]

Well it won't happen if this deal goes through Lonny, at least not according to Phillip Van Osten, writing on en.f1i.com, he says that although Bernie's now small stake, 5%, will be included in the deal he will be retained as ringmaster.   

The deal currently under negotiation may be worth £5 billion for a stake evaluated at 35.5% of F1, and would include FOM's chief executive Bernie Ecclestone's personal 5% stake in the company
                                    ----
Talks with CVC are still in the early stages however, with a formal offer not expected to be submitted for several weeks and upon completion of the necessary due diligence work. Should the deal materialize, RSE is reportedly keen on retaining the services of F1's current supremo, believing that the 84-year-old Ecclestone could still prove instrumental in managing and expanding Grand Prix racing globally.

Phillip Van Osten, en.f1i.com, Today.

[Steve A.]

F1 needs something new, and that includes a new ringmaster.

[Scott]

Yeah, if it means the end of Bernie, then the uncertainty of it might be appealing.  It might also bring focus on the FIA and its FIFA like structure of having hundreds of corrupt third world countries with the same voting rights as 1st world countries.  Love to see the FIA given the boot from F1.  Qatar wouldn't like that spotlight and could well try to sever ties as quickly as possible to Todt and crew.

But on the other hand, the uncertainty could bring nothing but more corruption and poor management.   

[Steve A.]

I think a bit of uncertainty might be preferable to the downward spiral we have at the moment.

[John S]

I have a fear that this plan by Qatar to first take CVC's stake and then try to negotiate a full buy out of F1's commercial rights might be a move instigated by Bernie to seek to put control of F1 beyond the busybody EU jurisdiction, with the owners being headquartered outside their reach.

Now whilst it may be the case that the EU could still interfere to some extent, as there are races in Europe, the inevitable consequence may be we lose all European races. Well it's been heading that way for the last few years anyway.

With Britain set to vote on whether to leave the EU, if we do quit most of the teams and the long contract British GP would all fall outside EU directives and interference anyways. 

[cosworth151]

RSE Ventures is owned by Stephen Ross, the owner of the NFL Miami Dolphins.

I wonder if this is just a sign that CVC has had all the fun they can stand and just want out.

[Jericoke]

I have a fear that this plan by Qatar to first take CVC's stake and then try to negotiate a full buy out of F1's commercial rights might be a move instigated by Bernie to seek to put control of F1 beyond the busybody EU jurisdiction, with the owners being headquartered outside their reach.

That seems most likely to me.

I think that screwing over a royal family might be the feather in Bernie's cap

[F1fanaticBD]

If I am not wrong the veto was given by Bahrain, not Bernie as being the first country to host F1, they wanted that right, and Bernie gladly obliged with a bit of more money.

Having the full control, they might worry about the heritage more than pure greedy Bernie cares for, so there might be reduced fee for the key European races, may keep them in the calender.

I hope nobody is suggesting Qatar is poor country, because as the figure shows it might be among the highest per capita income/GDP countries, but yeah corruption is rampant for sure, specially getting their bid for 2022 FIFA World Cup, is as shoddy as it can get.

The increasing presence of Middle East in the Formula 1 paddock is quiet nervy for me

Abu Dhabi Group owns a significant number in Ferrari, Bahrain has significant stake at McLaren, Now the Qatar's bid for entire F1..

[cosworth151]

Most of what I see here in the States about this is emphasizing Stephen Ross angle. Mario likes the idea:

http://autoweek.com/article/formula-one/mario-andretti-american-takeover-could-save-formula-one

[Jericoke]

Most of what I see here in the States about this is emphasizing Stephen Ross angle. Mario likes the idea:

http://autoweek.com/article/formula-one/mario-andretti-american-takeover-could-save-formula-one

The NFL knows how to make money.  The NFL knows how to cater to fans while keeping stakeholders happy (i.e., make money simply for being a stakeholder).  They're not above changing the rules when the rules turn out to be stupid.  I would think anyone approaching a sport with an NFL back ground would keep these aspects.

If F1 is taken over by Americans, I would imagine that the series will marginalize the FIA as much as possible too.

I love Mario as much as any other race fan, but there are reasons why Michael went into management and he didn't.  I'll take his word on what's going on on track, but I don't know about off track.

[John S]

If F1 is taken over by Americans, I would imagine that the series will marginalize the FIA as much as possible too.

That may be hard to do Jeri, The FIA owns the rights to F1 and FOM has a licence for something like a hundred years for the huge (at the time anyway) £300m that Bernie paid to get the commercial rights.

FIA was forced by the EU to split up the commercial and governance elements of F1, the Bernie deal was the result. This is why now the strategy group (again created in exchange for more income to the FIA) can only suggest & recommend changes to the rules, the WMSC still has to ratify any major changes the Strategy group puts up. The WMSC is an FIA body.

Now no one is going to invest $1b let alone the suggested $6b and then end up with just a breakaway series, because make no mistake the FIA F1 series would continue to run, with a different promoter if necessary, if the contracted commercial rights holder breaches the terms by ignoring or side stepping the FIA rules and regs making process.
 

[cosworth151]

As long as the FIA is involved, F1 is doomed. Moving the operating base out of Europe and off to the States or Qatar might change everything. I don't know about Qatar, but a billion or two over here will buy you any court ruling you want.

And remember, CART wasn't worried about a "breakaway" series, either. F1 is heading down the same hole CART was going down. Time for a change.

[Jericoke]

If F1 is taken over by Americans, I would imagine that the series will marginalize the FIA as much as possible too.

That may be hard to do Jeri, The FIA owns the rights to F1 and FOM has a licence for something like a hundred years for the huge (at the time anyway) £300m that Bernie paid to get the commercial rights.

FIA was forced by the EU to split up the commercial and governance elements of F1, the Bernie deal was the result. This is why now the strategy group (again created in exchange for more income to the FIA) can only suggest & recommend changes to the rules, the WMSC still has to ratify any major changes the Strategy group puts up. The WMSC is an FIA body.

Now no one is going to invest $1b let alone the suggested $6b and then end up with just a breakaway series, because make no mistake the FIA F1 series would continue to run, with a different promoter if necessary, if the contracted commercial rights holder breaches the terms by ignoring or side stepping the FIA rules and regs making process.

Then what exactly is being purchased if not 'F1'?