Future Grands Prix?

[Mike Harte]

Everyone seems to presume that the Liberty take-over is a done deal; I would suggest that it is far from being completed. So far, Liberty have purchased a 10% shareholding, and they have very little cash left to finish off the purchase. In fact, they will need to raise a considerable amount, and even then they are proposing that the majority of the purchase will be in the way of handing over their own shares. They have also approached the teams to tempt them to invest so that they have to find less cash.

In addition, there are regulatory hurdles to overcome. 3 countries, including the UK, have started investigations into the proposed sale, whilst the EU is also investigating. That could be major obstacle for the sale because the FIA and FOM have broken the agreement that they made with the EU about the FIA having any interest in the commercial side of F1. That is why BCE got control of the commercial interests for 99 years for a nominal sum.

Now that the FIA has a 1% shareholding, it means that they have a conflict of interest over the sale. As things stand on the proposed sale amount, the FIA would be inline to receive a windfall of around $330 million if the sale goes through, but in order for the sale to proceed, the FIA has to give it's blessing - that's in the contract details that were hammered out when Mr E got control.

And that, plus the Force India and the other team's official complaint, is upsetting the busybodies in Brussels.

Furthermore, I believe that there may well be a time clause built into the offer contract from Liberty, and that time is fast running out!