Bernie's paymasters

[NobleLord]

Simple question really; how does Bernie E. make his money? Is he paid my the teams, the countries where the races take place, the sponsors or the mass of merchandise... or all of the above?

Ta,
NL

[The Moose]

Yes.

And everyone else.

HTH.

[Crafty_]

He works for CVC who own the commercial rights for F1.

[Rich_W]

It's complicated (as is often the way)

CVC own 70% of Formula One Group (Formula One Management, Formula One Administration and Formula One Licensing)
JP Morgan own 20%
Bernie owns 10% but is effectively an employee of CVC by way of percentages.

Bernie, on behalf of CVC, negociates the commercial aspect of Formula 1. He deals with circuits and TV companies essentially. In return for them paying him the $M's he makes sure the teams will turn up, look professional and race. (essentially stick to the concorde agreement - for another thread)

In return for turning up the Teams get paid appearence money (sliding scale so Ferrari and McL get more than HRT & Virgin) AND Prize money per point (Not sure anyones ever said how much) Teams obviously sell the space on the side of the cars for advertising and sell their own merchandise. If they want to write "F1" on anything (which generally they don't) BE gets a royalty.


However, before anyone else gets daft. The recent BBC/Sky situation was started by the BBC wanting to get out of the contract they'd signed to reduce costs. BE suggested BBC do a deal with Channel 4 or 5. (to keep it on free to air) But the BBC decided not to for reasons of competition. So Sky stepped in and negociated with the idiots people at BBC and we all got the deal Sky wanted not the public. BE as owner of the contract ultimately doesn't care who pays, just that he gets paid (or he sues) so he rubber stamped the new deal. People have an image of the guy that he just chased the money and screwed the BBC out if their deal, but they actually did it to themselves. It's a cliche but you have to get up very early to get one over on him. He's much, much smarter than people give him credit because his public persona (and height) is relatively unassuming.

[cuprabob]

I'm sure Ferrari have a special agreement which gives them more money than anyone else, similar to a loyalty bonus as they have competed every year. IIRC it was negotiated prior to the Shuey era when they were in the doldrums and threatened to pull out