How did Bernie get to own F1?
Discussion
OP if you are genuinely interested this is a good read.
http://www.amazon.co.uk/Powerbrokers-Inside-Battle...
http://www.amazon.co.uk/Powerbrokers-Inside-Battle...
adycav said:
OP if you are genuinely interested this is a good read.
http://www.amazon.co.uk/Powerbrokers-Inside-Battle...
It's now top of my list for santahttp://www.amazon.co.uk/Powerbrokers-Inside-Battle...
TaNoNeed said:
adycav said:
OP if you are genuinely interested this is a good read.
http://www.amazon.co.uk/Powerbrokers-Inside-Battle...
It's now top of my list for santahttp://www.amazon.co.uk/Powerbrokers-Inside-Battle...
Ta
The short version is that the FIA (self-appointed "world governing body of motor sport") is the ultimate owner of, for example, the brand "Formula One". They decide who gets the broadcasting and other commercial rights.
Bernie and Max Mosley mounted a 2-pronged, long-game attack on the business. With the two playing good-cop/bad-cop, bad-cop Bernie got more involved in the business side because he owned an F1 team, Brabham,and he was more interested than any other owners in cutting deals with promoters and the media. They were interested in only the racing, oddly enough.
At the same time that Bernie was positioning himself between the sources and the users of money, Mosley became the "reform" (try not to laugh too loudly) candidate whose mission was to clean up the FIA regulator. Seriously.
Largely because the '80s president of the FIA, Balestre, was a fool, Mosley manoeuvred to replace him, which he succeeded in doing in '91/3.
The FIA was not equipped to manage the commercial interests of the sport, so instead they sold the rights to those interests to someone who could claim some expertise - Bernie. (Nb: nonetheless, the FIA practised such a blatant conflict of interest by getting involved in underhand ways with the commercial interests that the EU Commissioner for Competition had to intercede and sanction it, in'01).
The first contract for commercial rights that the FIA, under Mosley's reign, sold to Bernie was in '97, and expired at the end of '10, IIRC. Nonetheless, in 2000, with the original contract having still a full decade to run, Mosley arranged for the FIA to sell Bernie a new contract, to start in 2011. This contract negotiation was a secret. No one outside of Bernie and the FIA knew that it was in play, as the extant one had 10 years left. Nonetheless,the deal was done, except this time the exclusive, worldwide contract was for 100 years.
Bernie paid $310m for this hundred-year contract. At the same time that he was buying that contract for his company, a company of which the only substantial asset was the 10- and 100-years contracts, he was selling the company for a valuation of more than $2b.
Bernie and Max Mosley mounted a 2-pronged, long-game attack on the business. With the two playing good-cop/bad-cop, bad-cop Bernie got more involved in the business side because he owned an F1 team, Brabham,and he was more interested than any other owners in cutting deals with promoters and the media. They were interested in only the racing, oddly enough.
At the same time that Bernie was positioning himself between the sources and the users of money, Mosley became the "reform" (try not to laugh too loudly) candidate whose mission was to clean up the FIA regulator. Seriously.
Largely because the '80s president of the FIA, Balestre, was a fool, Mosley manoeuvred to replace him, which he succeeded in doing in '91/3.
The FIA was not equipped to manage the commercial interests of the sport, so instead they sold the rights to those interests to someone who could claim some expertise - Bernie. (Nb: nonetheless, the FIA practised such a blatant conflict of interest by getting involved in underhand ways with the commercial interests that the EU Commissioner for Competition had to intercede and sanction it, in'01).
The first contract for commercial rights that the FIA, under Mosley's reign, sold to Bernie was in '97, and expired at the end of '10, IIRC. Nonetheless, in 2000, with the original contract having still a full decade to run, Mosley arranged for the FIA to sell Bernie a new contract, to start in 2011. This contract negotiation was a secret. No one outside of Bernie and the FIA knew that it was in play, as the extant one had 10 years left. Nonetheless,the deal was done, except this time the exclusive, worldwide contract was for 100 years.
Bernie paid $310m for this hundred-year contract. At the same time that he was buying that contract for his company, a company of which the only substantial asset was the 10- and 100-years contracts, he was selling the company for a valuation of more than $2b.
adycav said:
OP if you are genuinely interested this is a good read.
http://www.amazon.co.uk/Powerbrokers-Inside-Battle...
Fwiw, a new biography of Bernie will be coming out next week:http://www.amazon.co.uk/Powerbrokers-Inside-Battle...
http://www.pitpass.com/fes_php/pitpass_news_item.p...
flemke said:
adycav said:
OP if you are genuinely interested this is a good read.
http://www.amazon.co.uk/Powerbrokers-Inside-Battle...
Fwiw, a new biography of Bernie will be coming out next week:http://www.amazon.co.uk/Powerbrokers-Inside-Battle...
http://www.pitpass.com/fes_php/pitpass_news_item.p...
flemke said:
The short version is that the FIA (self-appointed "world governing body of motor sport") is the ultimate owner of, for example, the brand "Formula One". They decide who gets the broadcasting and other commercial rights.
Bernie and Max Mosley mounted a 2-pronged, long-game attack on the business. With the two playing good-cop/bad-cop, bad-cop Bernie got more involved in the business side because he owned an F1 team, Brabham,and he was more interested than any other owners in cutting deals with promoters and the media. They were interested in only the racing, oddly enough.
At the same time that Bernie was positioning himself between the sources and the users of money, Mosley became the "reform" (try not to laugh too loudly) candidate whose mission was to clean up the FIA regulator. Seriously.
Largely because the '80s president of the FIA, Balestre, was a fool, Mosley manoeuvred to replace him, which he succeeded in doing in '91/3.
The FIA was not equipped to manage the commercial interests of the sport, so instead they sold the rights to those interests to someone who could claim some expertise - Bernie. (Nb: nonetheless, the FIA practised such a blatant conflict of interest by getting involved in underhand ways with the commercial interests that the EU Commissioner for Competition had to intercede and sanction it, in'01).
The first contract for commercial rights that the FIA, under Mosley's reign, sold to Bernie was in '97, and expired at the end of '10, IIRC. Nonetheless, in 2000, with the original contract having still a full decade to run, Mosley arranged for the FIA to sell Bernie a new contract, to start in 2011. This contract negotiation was a secret. No one outside of Bernie and the FIA knew that it was in play, as the extant one had 10 years left. Nonetheless,the deal was done, except this time the exclusive, worldwide contract was for 100 years.
Bernie paid $310m for this hundred-year contract. At the same time that he was buying that contract for his company, a company of which the only substantial asset was the 10- and 100-years contracts, he was selling the company for a valuation of more than $2b.
Begs the question. Why did people allow it?Bernie and Max Mosley mounted a 2-pronged, long-game attack on the business. With the two playing good-cop/bad-cop, bad-cop Bernie got more involved in the business side because he owned an F1 team, Brabham,and he was more interested than any other owners in cutting deals with promoters and the media. They were interested in only the racing, oddly enough.
At the same time that Bernie was positioning himself between the sources and the users of money, Mosley became the "reform" (try not to laugh too loudly) candidate whose mission was to clean up the FIA regulator. Seriously.
Largely because the '80s president of the FIA, Balestre, was a fool, Mosley manoeuvred to replace him, which he succeeded in doing in '91/3.
The FIA was not equipped to manage the commercial interests of the sport, so instead they sold the rights to those interests to someone who could claim some expertise - Bernie. (Nb: nonetheless, the FIA practised such a blatant conflict of interest by getting involved in underhand ways with the commercial interests that the EU Commissioner for Competition had to intercede and sanction it, in'01).
The first contract for commercial rights that the FIA, under Mosley's reign, sold to Bernie was in '97, and expired at the end of '10, IIRC. Nonetheless, in 2000, with the original contract having still a full decade to run, Mosley arranged for the FIA to sell Bernie a new contract, to start in 2011. This contract negotiation was a secret. No one outside of Bernie and the FIA knew that it was in play, as the extant one had 10 years left. Nonetheless,the deal was done, except this time the exclusive, worldwide contract was for 100 years.
Bernie paid $310m for this hundred-year contract. At the same time that he was buying that contract for his company, a company of which the only substantial asset was the 10- and 100-years contracts, he was selling the company for a valuation of more than $2b.
The short and simple answer lays in the battle(s) between FOCA and FISA.
Bernie Ecclestone led FOCA, whilst FISA was led by Jean Barie Balestre
Today's equivalent of FOCA is FOM.
Today's equivalent of FISA is FIA.
Quite similar to the pre-2008 battles between FOM and FIA.
Also noting that Bernie may be the "F1 Supremo" - however, CVC "own" F1.
Allow the joys of wiki to give a better answer: http://en.wikipedia.org/wiki/FISA%E2%80%93FOCA_war
Bernie Ecclestone led FOCA, whilst FISA was led by Jean Barie Balestre
Today's equivalent of FOCA is FOM.
Today's equivalent of FISA is FIA.
Quite similar to the pre-2008 battles between FOM and FIA.
Also noting that Bernie may be the "F1 Supremo" - however, CVC "own" F1.
Allow the joys of wiki to give a better answer: http://en.wikipedia.org/wiki/FISA%E2%80%93FOCA_war
adycav said:
flemke said:
adycav said:
OP if you are genuinely interested this is a good read.
http://www.amazon.co.uk/Powerbrokers-Inside-Battle...
Fwiw, a new biography of Bernie will be coming out next week:http://www.amazon.co.uk/Powerbrokers-Inside-Battle...
http://www.pitpass.com/fes_php/pitpass_news_item.p...
NoNeed said:
flemke said:
The short version is that the FIA (self-appointed "world governing body of motor sport") is the ultimate owner of, for example, the brand "Formula One". They decide who gets the broadcasting and other commercial rights.
Bernie and Max Mosley mounted a 2-pronged, long-game attack on the business. With the two playing good-cop/bad-cop, bad-cop Bernie got more involved in the business side because he owned an F1 team, Brabham,and he was more interested than any other owners in cutting deals with promoters and the media. They were interested in only the racing, oddly enough.
At the same time that Bernie was positioning himself between the sources and the users of money, Mosley became the "reform" (try not to laugh too loudly) candidate whose mission was to clean up the FIA regulator. Seriously.
Largely because the '80s president of the FIA, Balestre, was a fool, Mosley manoeuvred to replace him, which he succeeded in doing in '91/3.
The FIA was not equipped to manage the commercial interests of the sport, so instead they sold the rights to those interests to someone who could claim some expertise - Bernie. (Nb: nonetheless, the FIA practised such a blatant conflict of interest by getting involved in underhand ways with the commercial interests that the EU Commissioner for Competition had to intercede and sanction it, in'01).
The first contract for commercial rights that the FIA, under Mosley's reign, sold to Bernie was in '97, and expired at the end of '10, IIRC. Nonetheless, in 2000, with the original contract having still a full decade to run, Mosley arranged for the FIA to sell Bernie a new contract, to start in 2011. This contract negotiation was a secret. No one outside of Bernie and the FIA knew that it was in play, as the extant one had 10 years left. Nonetheless,the deal was done, except this time the exclusive, worldwide contract was for 100 years.
Bernie paid $310m for this hundred-year contract. At the same time that he was buying that contract for his company, a company of which the only substantial asset was the 10- and 100-years contracts, he was selling the company for a valuation of more than $2b.
Begs the question. Why did people allow it?Bernie and Max Mosley mounted a 2-pronged, long-game attack on the business. With the two playing good-cop/bad-cop, bad-cop Bernie got more involved in the business side because he owned an F1 team, Brabham,and he was more interested than any other owners in cutting deals with promoters and the media. They were interested in only the racing, oddly enough.
At the same time that Bernie was positioning himself between the sources and the users of money, Mosley became the "reform" (try not to laugh too loudly) candidate whose mission was to clean up the FIA regulator. Seriously.
Largely because the '80s president of the FIA, Balestre, was a fool, Mosley manoeuvred to replace him, which he succeeded in doing in '91/3.
The FIA was not equipped to manage the commercial interests of the sport, so instead they sold the rights to those interests to someone who could claim some expertise - Bernie. (Nb: nonetheless, the FIA practised such a blatant conflict of interest by getting involved in underhand ways with the commercial interests that the EU Commissioner for Competition had to intercede and sanction it, in'01).
The first contract for commercial rights that the FIA, under Mosley's reign, sold to Bernie was in '97, and expired at the end of '10, IIRC. Nonetheless, in 2000, with the original contract having still a full decade to run, Mosley arranged for the FIA to sell Bernie a new contract, to start in 2011. This contract negotiation was a secret. No one outside of Bernie and the FIA knew that it was in play, as the extant one had 10 years left. Nonetheless,the deal was done, except this time the exclusive, worldwide contract was for 100 years.
Bernie paid $310m for this hundred-year contract. At the same time that he was buying that contract for his company, a company of which the only substantial asset was the 10- and 100-years contracts, he was selling the company for a valuation of more than $2b.
Vvroom said:
Didn't know about the new book Flemke.
A few years ago, Terry Lovell (awful, awful man) wrote a good book called 'Bernie's Game'.
Worth a read but please pay as little as possible for it!
Worth reading this book, from the article above it would seem the new ones coming out will be less controversial..A few years ago, Terry Lovell (awful, awful man) wrote a good book called 'Bernie's Game'.
Worth a read but please pay as little as possible for it!
Edited by Vvroom on Saturday 11th December 21:29
Fans need to remember that in the 1970's F1 was a sport run by team owners who were either strong engineering firms or priavteers who just wanted to go motor racing. The sport was poorly run regarding organisation, safety and direction.
Bernie had been a team owner (Brabham) a driver manager and decided that he had what it took from a business perspective to develop the sport and offer the team owners a share of the pie.
These owners had no idea about negotiating lucrative TV contracts, the power of corporate hospitality and the value of trackside sponsorship.
Bernie offered to organise races across the world, and free transportation, a share of TV revenue if the owners, Frank Williams, Ron Dennis, Ken Tyrrell, Ferrari and numerous others, mostly a mixture of manufacturers, ie Renault and smaller tams who wanted a return on their investments.
By the mid 1980's F1 was slowly growing across the globe, tobacco was driving the advertising revenues and the oil companies were pumping cash into the sport....Bernie had approached the circuit owners and offered them a good deal....well what they saw as a good deal and the rest is history.
Remember today Bernie does not own F1.....CVC Partners own F1, Bernie runs the show and is a share holder, the business is owned by banks, hedge funds and a myriad of investors....but changes are afoot. CVC Partners borrowed heavily to buy out Bernie and more recently Paddy McNally (Allsport) who run the advertising and hospitality arm of the business.
Last week they employed the CEO of the O2 Arena in London to come aboard and the main board of CVC Parners has some very experienced and professional advertising and marketing members.
Quite simply Bernie viewed F1 as a business venture, most of the team owners just wanted to go racing because they were not business minded. Few of today's 'old school' owners actually know that much about business but have become very wealthy off of Bernie. Just look at how much money the teams get from TV revenue each year, merchandise sales and the ability to not have to worry about global logitics every two weeks.
CVC and Bernie run a very slick show, they work hard and without a good board the wheels would soon fall off the cart as the agenda of the team owners is very fractious, with each party wanting something very different.
Bernie had been a team owner (Brabham) a driver manager and decided that he had what it took from a business perspective to develop the sport and offer the team owners a share of the pie.
These owners had no idea about negotiating lucrative TV contracts, the power of corporate hospitality and the value of trackside sponsorship.
Bernie offered to organise races across the world, and free transportation, a share of TV revenue if the owners, Frank Williams, Ron Dennis, Ken Tyrrell, Ferrari and numerous others, mostly a mixture of manufacturers, ie Renault and smaller tams who wanted a return on their investments.
By the mid 1980's F1 was slowly growing across the globe, tobacco was driving the advertising revenues and the oil companies were pumping cash into the sport....Bernie had approached the circuit owners and offered them a good deal....well what they saw as a good deal and the rest is history.
Remember today Bernie does not own F1.....CVC Partners own F1, Bernie runs the show and is a share holder, the business is owned by banks, hedge funds and a myriad of investors....but changes are afoot. CVC Partners borrowed heavily to buy out Bernie and more recently Paddy McNally (Allsport) who run the advertising and hospitality arm of the business.
Last week they employed the CEO of the O2 Arena in London to come aboard and the main board of CVC Parners has some very experienced and professional advertising and marketing members.
Quite simply Bernie viewed F1 as a business venture, most of the team owners just wanted to go racing because they were not business minded. Few of today's 'old school' owners actually know that much about business but have become very wealthy off of Bernie. Just look at how much money the teams get from TV revenue each year, merchandise sales and the ability to not have to worry about global logitics every two weeks.
CVC and Bernie run a very slick show, they work hard and without a good board the wheels would soon fall off the cart as the agenda of the team owners is very fractious, with each party wanting something very different.
You too can "own" a sport of your choice. Just send £10.00 to me and I will tell you all the insider secrets to power and fame!
But wait! There's more. If you order now I will include my book "How to Get Rich by Stating the Obvious" ABSOLUTELY FREE. Send no money now - just your credit card details ..............................
Actually, there are two ways you can own a sport.
First one is to invent a new game and then patent it. IIRC Tennis came about like this and was originally called Wiff-Waff or something similar. It was a patented game which was sold in kit form.
The second method of sport ownership is to think up a variation of an existing game, get players and sponsors interested etc. and stage competitions at existing venues.
This happened with cricket when an Australian called Kerry Packer brought in a much more dynamic version of the game (one day events? and colourful clothing for the teams) which really pissed off the existing cricket establishment. At the same time three English businessmen set up an alternative league in competition to Packer but I believe this didn't last very long.
But wait! There's more. If you order now I will include my book "How to Get Rich by Stating the Obvious" ABSOLUTELY FREE. Send no money now - just your credit card details ..............................
Actually, there are two ways you can own a sport.
First one is to invent a new game and then patent it. IIRC Tennis came about like this and was originally called Wiff-Waff or something similar. It was a patented game which was sold in kit form.
The second method of sport ownership is to think up a variation of an existing game, get players and sponsors interested etc. and stage competitions at existing venues.
This happened with cricket when an Australian called Kerry Packer brought in a much more dynamic version of the game (one day events? and colourful clothing for the teams) which really pissed off the existing cricket establishment. At the same time three English businessmen set up an alternative league in competition to Packer but I believe this didn't last very long.
Fook me there is some stuff written on here.
First off, the illusion that Ron and Frank didnt know owt about business/money. Very, very not true. Frank and Ron are about the last 2 guys in the world Bernie would either try or want to double cross on a business deal. They are both hard nosed b@stards and very very sharp. They had also stood with Bernie in the trenches alongside Balestre, they knew him well enough and knew what he could do.
Luca and Enzo. Enzo rode Ballestre, but when the torch was passed it was passed to the sharpest business and political mind in Italy. That Ferraris fortunes have risen through the late 90s and 00s as F1 money has risen isnt a wild lucky happenstance.
Bolted onto that happened to be a chap called Flav. Runs some clothing business. Knows f
k all about money, business or racing.
First off, the illusion that Ron and Frank didnt know owt about business/money. Very, very not true. Frank and Ron are about the last 2 guys in the world Bernie would either try or want to double cross on a business deal. They are both hard nosed b@stards and very very sharp. They had also stood with Bernie in the trenches alongside Balestre, they knew him well enough and knew what he could do.
Luca and Enzo. Enzo rode Ballestre, but when the torch was passed it was passed to the sharpest business and political mind in Italy. That Ferraris fortunes have risen through the late 90s and 00s as F1 money has risen isnt a wild lucky happenstance.
Bolted onto that happened to be a chap called Flav. Runs some clothing business. Knows f
k all about money, business or racing.- Nobody* in that core group was a mug businessman, they are all pretty close, with the exception really of Max. Max was always the outsider to everyone but Bernie.
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