Very early in my F1 blogging days, I asked the question, "Who owns F1?" That led to a fascinating discussion with the man (Mark Higgins) who wrote the Wikipedia entry on that subject and I think I now have a much better understanding of how everything fits together. Basically, it turns out that F1 is comprised of two parts, one owned by the FIA (the governance of the sport) and the other (the financial rights to televising and merchandise) by an investment company named CVC Capital Partners (CVC) and fronted by our old friend, Bernie Ecclestone.
Bernie Ecclestone
I confess, however, that the recent political shenanigans behind the scenes have raised a question in my mind that I cannot answer and it occurs to me that my excellent commenters could help me on this score. Let me explain.
Suppose for a moment that the struggle for power between Bernie and Max Mosley does result in a breakaway F1 series (no doubt named something else, such as GP1, but the new "pinnacle of motor sport"). There are logistical problems to be overcome, I know, but nothing insurmountable. The biggest problem that I discern is how CVC would fit into all this, especially as Bernie is its representative and is being touted as the leading force behind a new series.
CVC acquired its holding by being the latest in a long line of CRHs (Commercial Rights Holders) but the original sale by the FIA was to Bernie himself. So my first question is this: Does the contract with CVC remain valid if an entirely new group is set up to run F1? We know, for instance, that a clause in the contract gives the FIA the option to forbid the sale of the rights to anyone it deems unfit. Are there other clauses that could enable Max to make life very difficult for an independent organization?
There are rumors that CVC is considering a sale of its investment to News Corp. It would seem fairly obvious that the FIA could fight this by invoking their oversight clause and so scupper the new series' financial arrangements.
Or would the contract be valid at all, considering that F1 would be renamed and run by an entirely new group? Would the rights have to be re-sold or could Bernie's new series keep them to itself? And how likely would Bernie be to lead a breakaway that effectively divests CVC of its holding?
Perhaps I am missing the point and the whole idea is for Bernie/CVC to increase its ownership of the sport beyond the finances. Maybe Max was inadvertently right in his letter to delegates when he accused the CRH of wanting to govern the sport as well. But are we afraid that they would make a worse job of it than Max?
It all looks immensely complicated to me and could become a happy hunting ground for lawyers for decades. But I could be wrong, of course, especially as I cannot see Bernie embarking on a course of action that threatens the empire he has built so carefully over the years. Who knows what devious plans lurk in that feverish brain?
So I am doing what is supposed to be good blogging policy but a very rare thing for me - I am asking what you think about all this because, quite frankly, I don't have any answers myself. Alianora to the rescue!