FEBRUARY 6, 2002
What happens to F1 if Kirch defaults?
It is possible that Kirch will now be forced to default on some of its payments and that could have a disastrous effect on the entire group. The only likely saviour in such a situation is a rival media company such as Rupert Murdoch who is in a strong situation as he has a $1.5bn "put" option with Kirch. Murdoch may use the situation to engineer a takeover of the entire Kirch Group.
Kirch owns the Formula One group of companies and may be forced to sell the business (and the deal for 100 years of F1 commercial rights) to a new owner. Such a deal would still have to be cleared by the FIA which has the right to cancel the 100-year deal if it does not think the new commercial rights holder is a suitable candidate.