SEPTEMBER 15, 2011
Teams look to buy F1 stake
Formula 1's teams have hired DC Advisory Partners, leading European corporate finance advisers, to look into taking a stake in the F1 business.
CVC capital partners purchased a majority stake in the business in 2006, after Bernie Ecclestone was able to conclude a 100-year deal, which began this year, for the sport's commercial rights, back in 2001.
The sport is governed by the Concorde Agreement, however -- a tripartite agreement between CVC through Ecclestone's Formula One Management, governing body the FIA, and the teams.
The teams currently share 50% of the sport's revenue and feel that it would be much better if the remaining profits stayed within the business. They are expected to push for up to 75% of the revenue at the end of the existing Concorde Agreement in 2012.
Formula One Teams Association chairman Martin Whitmarsh told UK's Independent newspaper: "Formula 1 is owned by venture capitalists and one would suspect that they can't hold the sport in their funds ad infinitum."
FOTA has recently confirmed the appointment of Oliver Weingarten as its new Secretary-General, as Simone Perillo departs to pursue other paths, believed to include working with Ferrari president Luca di Montezemolo, who has political aspirations in Italy.
Weingarten leaves his role as an in-house lawyer from England's Premier League soccer.
"I'm delighted to welcome Oliver to FOTA, where his experience of Premier League football, together with his commercial, legal and public policy expertise, will be extremely valuable to all member teams," Whitmarsh said.
"The next few years will be a crucial time for the sport of Formula One, and, working in close collaboration with the FIA and FOM, FOTA will play a very important role in shaping the future of our great sport - Oliver will play a significant part in that process."
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