F1: Ferrari (NYSE:RACE) to Confront Liberty Media on Key Issues

F1: Ferrari (NYSE:RACE) to Confront Liberty Media on Key Issues

F1: Ferrari (NYSE:RACE) to Confront Liberty Media on Key Issues

$RACE, $LMCA

Liberty Media (NASDAQ:LMCA) is pushing to discuss a fairer distribution of F1’s prize money, thus leading to an battle with Ferrari (NYSE:RACE).

Last year, in their 1st season as Formula 1’s new owners, Liberty made it clear that Ferrari’s $100-M annual bonus payout just for being in the sport was not fair.

Liberty wants to bring in a democratic payment structure, along with shaking up the engine rules for Y 2021.

Both of those issues are contentious with the management of the iconic Maranello Outfit, aka The Scuderia.

I is inevitable that there is going to be a confrontation between Ferrari and Liberty as Ferrari is F1, and that is beyond the ownership of the event managers.

CEO Marchionne will move to protect the money that it receives, as it receives a disproportionate amount of money.

Racing fans all recognize that The Scuderia has added more value to the motorsport than any other manufactures and should be rewarded accordingly, the talks will be about the balance.

Ferrari’s CEO Sergio Marchionne has threatened to exit F1 if Liberty’s changes for the Y 2021 season and beyond are radical.

Symbol Last Trade Date Change Open High Low Volume
NYSE:RACE 127.04 6 February 2018 5.59 121.02 127.43 120.43 1,563,615
HeffX-LTN Analysis for RACE: Overall Short Intermediate Long
Very Bullish (0.51) Very Bullish (0.52) Bullish (0.38) Very Bullish (0.62)

Stay tuned…

The following two tabs change content below.

Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

You must be logged in to post comments :  
CONNECT WITH