There is no doubt that private equity company CVC Capital Partners is looking at what offers there might be on the table if they decided to sell their shares in the Formula One group. CVC owns 35.5 percent of the company, but with various other arrangements could deliver as much as 60 percent of the firm to a buyer with the right kind of investment. There are believed to be at least two or three bidders, with lots of rumours flying about.
The prices being quoted seem wildly excessive, which suggest that the stories that have thus far appeared are deliberate leaks. Among the ideas that have been discussed are that CVC chairman Donald Mackenzie might join forces with Ecclestone to invest their own money to buy the business.
This might work because Mackenzie is to retire in March 2017 and CVC will probably want to be out of the sport before that happens, as Mackenzie has always been the primary mover in the investment. The big question in this respect is whether or not Ecclestone and Mackenzie have the kind of money needed to buy the business. Other bidders are believed to have more but Ecclestone does not want just any owner as they might decide that his presence is no longer required. This is quite natural as there are very few 84-year-old CEOs who are still in place, without owning the business. The other question that is quite important is whether or not the big players in the sport would be happy to go
on working with Ecclestone and Mackenzie, or whether they might now prefer a new management.
At the moment the sport is locked in a political mess with the F1 Strategy Group unable to achieve any major decisions.
There was a lengthy meeting in the days before the British GP, at Bernie Ecclestone's Biggin Hill facility. The meeting was described as having been “very constructive” and that this led to “important decision and innovative evolutions”. The details are rather more vague with “increased restrictions on driver aids and coaching received unanimous support and will be rapidly implemented, starting from this year’s Belgian Grand Prix - with a particular emphasis on race starts – and in 2016. These measures will bring back the driver in full control of the car, enhancing races
excitement and unpredictability.
In order for any immediate changes there must be 100 percent agreement between the teams - and that is not likely to happen because the small teams are excluded from the Strategy Group and thus can only exert influence in such situations. The re are plans to change the engine penalty rules and to change exhaust systems to create more engine noise in 2016. It has also been agreed to
allow drivers an extra power unit in the first year of any new manufacturer entering the championship. Mandate has been given to the FIA and FOM to propose a comprehensive set of measures for power unit development and cost of supply, including full review of the token system,
increase in race fuel allowance, limits on the usage of engine dynamometers etc. Increased freedom of choice for tyre compounds is proposed for 2016 and a move to wider cars, new wings and floor shapes have been proposed. There are also discussions about the race and qualifying
formats. It remains to be seen how much of this becomes reality.
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