F1: Expect Ferrari (NYSE:RACE) to take a Stake in Formula One’s Future
Liberty Media bought Formula One last year and has offered some racing teams the chance to purchase a 20% stake of the commercial rights.
So far, no team has accepted that offer, primarily because the stake would be non voting.
However, I just learned that Ferrari is the 1st team to show an interest in taking an ownership position in the enterprise.
Ferrari President Sergio Marchionne said that the Maranello, Italy-based racing team is “considering the opportunity to take shares” in F1. “We will discuss it with the new owners,” he said.
According to Mr. Marchionne, a major consideration will be the future of the sport beyond the current contracts that run out after Y 2020.
“It is not a financial issue,” he said. “It would be unwise to invest without having clarity about what will happen after 2020 and what Ferrari could get from its investment in Formula One.
“Once we have this clarity,” he added, “I think it will be much easier to decide if we want to participate in this venture.”
Mr. Marchionne also sounded upbeat about the post-founder Bernie Ecclestone Era, as he remains as Chairman Emeritus, an ambassadorial role. Mr. Ecclestone, 8 anni, was replaced by 21st Century Fox Vice Chairman Chase Carey as wend the transaction closed last year..
“I expect that the sport, in general, will do better,” Mr. Marchionne said. “Because Liberty and Chase Carey know the entertainment world and knows very well how to make F1 even more popular, and The Scuderia will do its part in this,” he added.
Last Thursday, the iconic Italian luxury Supercar maker reported a better-than-expected 38% rise in Q-4 adjusted core earnings and gave a strong guidance for Y 2017, lifting its shares 4.26% on the day.
|NYSE:RACE||64.58||6 February 2017||-0.03||64.33||64.9||64.25||447,100|
|HeffX-LTN Analysis for RACE:||Overall||Short||Intermediate||Long|
|Very Bullish (0.54)||Very Bullish (0.58)||Bullish (0.46)||Very Bullish (0.58)|