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    CVC To Sell 20% of Its Ownership in Formula 1

    Wow! I never knew Bernie owned such a small sliver of F1. I always thought he was the majority shareholder in the series. He actually owns less than his ex-wife, who I presume was given the chunk in some sort of divorce settlement. And how does Lehman Bros still own a piece? I thought they would have to liquidate any assets as part of their bankruptcy 3 years ago. 

    To this day, I still do not know what the Grand Prix payouts are for Winning or Showing each race. Can anyone shed light on this?

    --------------------------------------------------

    CVC Capital Partners – the investment group that owns the majority of Formula One – has been toying with floating an IPO on the Singapore Stock Exchange for several weeks now, and according to reports is gearing up for the move. Both Bloomberg and Reuters are expecting that the stock issue would constitute about 20% of the business, likely to come mostly out of CVC's end which amounts to 63.4%, and not that of its manager Bernie Ecclestone whose stake comes to 5.3%.

    (Lehman Brothers holds another 15.3%, Ecclestone's ex-wife Slavica owns 8.5%, with the remaining 7.5% divided up between various minority investors.)

    With the overall value of the business estimated at $10 billion, the 20% tipped to be offered on the open market is expected to bring in $2 billion in capital for its sellers.

    The IPO will be listed in Singapore. It is opting for an Asian listing because of increasing popularity of Formula 1 races in the continent.

    Goldman Sachs has been appointed as the bookrunner and lead manager of the IPO. It is not clear whether Formula 1 Chief Executive Officer, Bernie Ecclestone will sell his stake or not through this IPO.


    CVC bought majority stake in Formula One in 2006. Formula One’s turnover in 2011 was 1.17 billion Euros. It earns majority of its revenues from organizing races.

     


    Re: CVC To Sell 20% of Its Ownership in Formula 1

    Update: I thought I remembered this, bernie cashed out of this  in 05 to CVC and now CVC wants to cash out to the public.

     

     

    It's a BS "business" that could be run out of a cubicle. Other than a few copyrights to images and past races they do nothing but promote events over which they have little control really. They don't own any cars, any venues (paul ricard ?) or contracts of any of the talent - drivers. Just a bunch of BS which has made this guy wealthy beyond reason. Look below and see how bernie made the teams stay put and I think I see how Mclaren funded the car business.

     

     

     

     

     

    http://www.abcmoney.co.uk/news/2720051426.htm

    LONDON: British investment firm CVC Capital Partners Ltd. has bought a controlling stake in Formula One Group, the company that conducts the Formula One car racing. The London-based investment firm also announced that it is retaining 75-year-old Bernie Ecclestone as chief executive even as he has sold his 25 per cent stake in the company to the former.

    CVC Capital Partners said it has set up a new company, Alpha Prema, which will hold the 48 per cent stake of Munich-based bank Bayerische Landesbank and the 25 per cent held by Ecclestone's family trust, Bambino Holdings, in SLEC Holdings, which owns a number of companies that run Formula One racing. The other stakeholders in SLEC Holdings are JP Morgan Chase and Company and Lehman Brothers Holdings Inc. and CVC Capital Partners are learnt to be in talks to buy them out too.


    Re: CVC To Sell 20% of Its Ownership in Formula 1

     

    Read this from wikipedia and if you can tell us who owns what at the present time you get an advanced math degree

     

    History

    In 1974 the Formula One Constructors Association, or FOCA, was founded in order to increase commercial organisation of Formula One for the benefit of the racing teams. In 1978 Bernie Ecclestone became the executive of FOCA and fought the Fédération Internationale du Sport Automobile (FISA) for control of F1 commercial rights. Disputes were settled by March 1981 when the Concorde Agreement gave FOCA the right to negotiate TV contracts. Under previous arrangements, TV contracts were not very lucrative and were risky. When the Concorde Agreement ended in 1987, Bernie Ecclestone ceased being a team owner and established the Formula One Promotions and Administration (FOPA), to manage TV rights for the teams. FOPA would later become known as Formula One Management (FOM). FOPA received 49% of TV revenues, 1% went to the teams, and 50% to the FIA. FOPA, however, received all the fees paid by promoters. In exchange for this FOPA paid prize money to the teams.

    In 1995 the FIA decided to grant the commercial rights to F1 to Formula One Administration (managed by FOM) for a 14-year period. In exchange, Ecclestone would provide an annual payment. With FOM having exclusive rights to popular team names like Team McLaren, WilliamsF1, and Tyrrell Formula One, the aforementioned teams protested by rejecting the following Concorde Agreement in 1997. Team McLaren, WilliamsF1, Scuderia Ferrari and Renault F1 formed GPWC Holdings and threatened to form a rival racing franchise in 2008 when their contracts ended in 2007.

    [edit] Ecclestone sells shares of F1

    SLEC Holdings was created as the holding company of the Formula One companies in 1996 when Bernie Ecclestone transferred his ownership of Formula One businesses to his wife, Slavica Ecclestone, in preparation for a 1997 flotation of the group.[4] In October 1999 Morgan Grenfell Private Equity (MGPE) acquired 12.5% of SLEC for £234 million.[5] In February 2000 Hellman and Friedman purchased a 37.5% share of SLEC for £625 million and combined its share with that of MGPE to form Speed Investments which thus had a combined holding of 50% of SLEC.[5][6] On 22 March 2000 German media company EM.TV & Merchandising purchased Speed Investments for £1.1 billion.[7]

    EM.TV's acquisitions caused it financial difficulties; following its announcement that its 2000 earnings would be below expectations and it was struggling with its debts, the share price dropped 90%.[8] In February the Kirch Group agreed to rescue EM.TV in return for a stake in the company and control of Speed Investments.[6] The two companies also agreed to exercise EM.TV's option to purchase another 25% of SLEC for approximately £600 million in late-March 2001.[9] To raise Speed Investments' share of SLEC to 75% Kirch borrowed €1.6 billion, €1 billion from Bayerische Landesbank and the rest from Lehman Brothers and JPMorgan Chase.[10] Kirch's involvement raised concerns among the major motor manufacturers who participate in Formula One; BMW, DaimlerChrysler, Fiat, Ford, and Renault formed GPWC Holding BV to secure better representation of the manufacturers in F1, improved financial conditions for the teams, stability for the championship, and maintenance of free-to-air television coverage.[10]

    Due to the agreement associated with their shareholding SLEC was controlled by Kirch, who hence controlled the board of Formula One Holdings (FOH). Due to huge losses and massive expenditure, Kirch's creditors put the company into receivership in 2002. These banks dismantled the group. Kirch's share of SLEC was retained by Bayerische Landesbank, JPMorgan Chase and Lehman Brothers (through Speed Investments).

    Before they could exercise their rights as shareholders they had to seek clearance from the European Commission. In the intervening period Ecclestone instituted changes in the boards of SLEC, FOH, Formula One Administration (FOA) and Formula One Management (FOM) which in effect put Bambino Holdings in control of those companies.

    In mid-November 2004, the three banks sued Ecclestone for more control over the sport, prompting speculation that Ecclestone might altogether lose the control he has maintained for more than thirty years. A two-day hearing began on November 23, but after the proceedings had ended the following day, Justice Andrew Park announced his intention to reserve ruling for several weeks. On December 6, 2004, Park read his verdict, stating that "In [his] judgment it is clear that Speed's contentions are correct and [he] should therefore make the declarations which it requests".[11] However, Ecclestone insisted that the verdict - seen almost universally as a legal blow to his control of Formula One - would mean "nothing at all". He stated his intention to appeal the decision.[12]

    The following day, at a meeting of team bosses at Heathrow Airport in London, Ecclestone offered the teams a total of £260,000,000 over three years in return for unanimous renewal of the Concorde Agreement, which expires in 2008.[13] Weeks later, Gerhard Gibkowsky, a board member of Bayerische Landesbank and the chairman of SLEC, stated that the banks had no intention to remove Ecclestone from his position of control.[14]

    [edit] CVC acquisition

    In November 2005 CVC Capital Partners announced it was to acquire the 25% and 48% shares of Bambino and Bayerische Landesbank in SLEC and acquired the shares of JPMorgan Chase in December 2005. This deal was given approval by the European Commission on March 21, 2006 and finalised on March 28. Ecclestone used the proceeds of the sale of Bambino Holdings' share to invest in Alpha Prema to give the Ecclestone family an unspecified stake in Alpha Prema.[15] On March 30, 2006 CVC purchased the 14.1% share of SLEC held by Lehman Brothers to give Alpha Prema full control of the Formula One Group.


     
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