And why are they buying F1?

 

Honestly, I'm thinking Simon could shed the most light onto your question.

But here is some light reading.
http://en.wikipedia.org/wiki/SLEC_Holdings


Here is what I found interesting when I was reading about SLEC and CVC this morning.
[QUOTE]Today

 

Here's my $.02 as I see it..

CVC Capital partnes are a consortium of such, in the European Union who will buy F1's commerical rights and give more money to the teams.

Its about keeping current ownership of F1, its advertsing, its commercial aspects, FIA sanctioning and ruling status quo but with a "new owner" and not allowing a breakaway series to occur. (GPMA)

Personally I don't see how a GPMA breakaway series can occur as marketing, television and other revenues and advertising are already signed till 2012 with the current Concorde Agreement and now with CVC allowing Ecclestone to run it, a breakaway series is surely "nullified," imho.

There are but a few current Concorde Agreement contracts are expiring in 2007 and the manufacturers are demanding that teams get paid more money and have more say in F1's governance or they will supposedly leave F1 and form their own "breakaway series" , the GPMA with other financial backers of which many are waiting to make this happen. (ie we witnessed the A1 GP)

The CVC would mean, keeping Ecclestone at the helm, and have 75% of profits to reach the teams and give ALL teams access to this 75% of revenue streams. The CVC looks like it will succeed in keeping F1 in tact and not going the route of partnering with the GPMA breakaway series. Why you ask ? I'm sure everyone remembers Ecclestone signing a deal with Ferrari and getting them and Alex Schnaider and Dietrich mateschitz of whom, most of you know, own 3 teams between them. Ferrari has the greatest following so anywhere they go, peopel will follow. F1 has always been around Ferrari, always has, and always will be. Enzo solidified this back in 1950. Ecclestone and this CVC conglomerate also managed to sign Williams.

so why all this attention now ?

The latest twist is, and which causes the strife, the CVC puts Ecclestone at the helm and declares 75% revenue sharing, but Bernie now is saying, he wants to reduce the 75% of revenue streaming to 60%.. so everyone is NOT happy again.. Bastard !!

i hope this sheds some light..

 

Nice write up Simon...

 

thx .. i try my best..

 

Damn!
I love it when I'm right...







Thanks Simon!