News Corp

Jru

Points Scorer
Contributor
http://news.bbc.co.uk/sport2/hi/formula_one/13274848.stm
http://www.autosport.com/news/report.php/id/91096

A statement has been released by News corp and Exor regarding future investment in F1:
"EXOR, one of Europe's largest listed investment companies, and News Corporation, the global media group, confirm that they are in the early stages of exploring the possibility of creating a consortium with a view to formulating a long-term plan for the development of Formula 1 in the interests of the participants and the fans.
"Over the coming weeks and months, EXOR and News Corporation will approach potential minority partners and key stakeholders in the sport. There can be no certainty that this will lead to an approach to Formula 1’s current owners."

Exor are an Italian investment firm according to the article, the company is headed by John Elkann, chairman and chief executive of Ferrari’s parent company Fiat.

News Corp are owned by Rupert Murdoch, who also operates a range of pay per view TV stations. Ecclestone has previously said that any move to control by News Corp would be unlikely given that he said there was an agreement to keep F1 on free to air TV. On top of this it is believed that sponsors would much rather be on free to air and so exposed to wider audiences. There is also the question of whether current owners CVC would even be interested in selling the rights.

In Rupert Murdoch, you must have one of the few characters (to put it nicely) possibly less liked than Bernie Ecclestone judging recent opinion when the rumour first circulated about this move.

Andrew Benson after previous rumours about News Corp:
http://www.bbc.co.uk/blogs/andrewbenson/2011/04/will_f1_go_pay-per-view.html

Ecclestone on the possibility:
http://www.guardian.co.uk/sport/2011/apr/28/bernie-ecclestone-murdoch-f1-deal
http://totalf1.com/full_story/view/375284/Freetoair_TV_deal_would_block_Murdoch/
 

Brogan

🦶 Leg end
Staff Member
If this goes ahead, passes all of the regulatory hurdles and is then put on a pay channel, it will be the beginning of the end of F1.

Maybe that's a good thing though?
The teams/FOTA can finally do what they've threatened to do several times recently.
 
J

johnnoble1990

Guest
I think i hate Rupert Murdoch and News corp more than any business man. He ruins everything i like! F1 would almost certainly move to pay tv in the UK and other countries where news corp own a pay tv company and as mentioned above, this will be the beginning of the end for F1. :(
 
J

johnnoble1990

Guest
This will kick off another concorde fiasco as well. That was lots of fun last time.
 

snowy

Champion Elect
My gut feeling is a take over by News Corp' won't happen...

However if it does, I have a nuclear device that I have been saving for just such an eventuality and it will give me great pleasure to use it.:blink:
 

Galahad

Not a Moderator
Valued Member
If it did happen, and F1 went primarily on to subscription-only, the teams would want to be handsomely compensated for the loss of sponsor income that would result. In principle the money is there to enable them to do that, but obviously the more they give up, the less attractive the whole thing becomes - particularly considering the likely cost of buying the rights from CVC in the first place.

They may instead follow the current German model, where the terrestrial broadcaster has a comparatively basic live package, and Sky offer an enhanced service with more interactivity etc. - whether that would attract enough subscribers on its own is open to question, though. Something similar was trialled in the UK for one season back in 2002.

Then there's the issue of Ferrari's parent company being involved. I can imagine the EU would be interested in that? Sky's attempted takeover of Manchester United F.C. was blocked on competition grounds - wouldn't this be the same thing, but happening in the opposite direction (competitor taking over broadcaster)?

It's hard to know exactly what the implications will be, with so much leaking and deliberate misinformation around.
 

FB

Not my cup of cake
Valued Member
The concern I have is that the team principals will see this as a chance to oust Bernie and get there own back for what they see as years of being under paid by FOM. Bernie has always said the teams don't know what's best for them and he is absolutely right. I don't agree with some of the decisions regarding where F1 is going, especailly the drive East, but can you imagine the disaster that would follow if all the team principals were supposed to decide how F1 should develop in the future?

Also, don't CVC now make a very nice turn on their investment and agreed to be in it for the longer term rather than the usual way investment groups work?
 

snowy

Champion Elect
Rupert runs his sports and news broadcasting with staggering loses offset by the huge profits from everything else he does. That is why he is talking not to CVC but to the stake holders, he plans to win them over by giving them what ever they demand. It is a classically Roman strategy for annexing territories, commodities, franchises and achieving global domination.
 

Porceliamone

This cost me a tenner, but so L'Oreal.
Contributor
I will refuse to pay to watch F1; especially to the hideous waste of blood and organs that is News Corp.
ITV was bad enough with the bleeding adverts ruining the coverage but to have to actually pay to watch an F1 race (and probably with adverts included) will completely alienate me from the sport and I will separate cash from pocket no longer to see it at any circuit, either.
 

Chad Stewarthill

Champion Elect
Contributor
The natural conclusion would be what Ferrari have always wanted, to get rid of those pesky small teams that belittle and cheapen our sport. You know, the likes of that drinks company and the other one that sounds like a pushchair maker, etc. Then President Luca would be free to roll out his 16 car per team, one team V12 engined superF1car series, which would give the Maranello team a guaranteed WDC and WCC every year. And good riddance luck to them I say.
 

teabagyokel

#dejavu
Valued Member
The natural conclusion would be what Ferrari have always wanted, to get rid of those pesky small teams that belittle and cheapen our sport. You know, the likes of that drinks company and the other one that sounds like a pushchair maker, etc. Then President Luca would be free to roll out his 16 car per team, one team V12 engined superF1car series, which would give the Maranello team a guaranteed WDC and WCC every year. And good riddance luck to them I say.

Would be nice to see rest of the world's sponsors stick with the fizzy drinks and pushchair pretenders and so on, while Sky Italia is the only channel broadcasting Ferrari1!
 

Jru

Points Scorer
Contributor
Although this could have some impact on the concorde negotiations I cannot see how it could be a false story as a part of the politicking that leads up to it. The interest must be there.

I agree with those questioning how on earth Ferrari (or Fiat) could have any say in the running of the sport other than through the team, it could lead to some kind of bias ...:givemestrength:

Also I would go back to what Bernie said about the agreement/guarantee of F1 being on free TV at least within the EU. Whilst this may or may not be legally binding it could present further issues for any attempt to gain control by News Corp.

Good news: Eddie has waded into the debate!
 
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