MAY 19, 2006
Ecclestone and CVC sign up with the GPMA
Bernie Ecclestone and CVC Capital Partners have now signed the Memorandum of Understanding with the Grand Prix Manufacturer Association teams and so the potential for a split in Formula 1 is now officially over. The news means that the various parties can now work together to grow the sport and thus increase their revenues as the split between the teams and the commercial rights holder is 50-50 and so it is in the interest of all of them to generate more money.
It is worth noting that the CVC acquisition of the Formula One Group has also been given the official go-ahead from the FIA which had the right of veto if there was a change of control of the commercial rights. This happened when CVC acquired the business.
The news is hugely positive for the sport and the timing of the deal is perfect as teams head to Monaco next week where they will be selling sponsorship deals for 2007 and beyond.
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