Group of teams looking to buy F1 from CVC
|9 April 2014 by Ryan Wood||Tweet
It has been reported that a group of Formula 1 teams are looking to buy the sport from its current majority owner, CVC Capital Partners.
The investment company is keen to offload its remaining 35.5 per cent stake and is legally bound to do so by 2018.
Bernie Ecclestone says a group of unnamed F1 teams are putting a plan together to take CVC's stake and therefore control of the sport.
"We'll see what the group comes up with," the 83-year-old told Bloomberg. "Maybe they will get enough together to buy shares."
It isn't clear which teams are involved, but it's believed both Ferrari and Red Bull could be, after both showed an interest in the idea previously.
Ecclestone added: "It's just a conversation [at the moment and] may not go anywhere."
The sport is valued at around £5.6 billion ($9.5bn, €6.8bn) meaning the teams would need to raise around £2 billion ($3.3bn, €2.4bn) to acquire CVC's shares.
However negative comments from Ecclestone, Ferrari president Luca di Montezemolo and Red Bull team principal Christian Horner about the sport's new rules, might be aimed at tarnishing the sport and therefore reducing its value before they launch a takeover bid.
WHY DO THEY WANT OWNERSHIP?
At present, F1's profits are split 63/37. The teams get to share 63 per cent of the profits, whilst its owners share the remainder.
If the teams could take control of the sport, they could choose to increase the prize money, or simply profit from the revenues.
It would also give those involved a greater say in how the sport is run, how the rules are created and which countries the sport visits.