F1: Liberty Media (NASDAQ: ) May Change Prize Money Structure
Formula 1’s future owners Liberty Media (NASDAQ:LMCA) has hinted that the Trier 1 motorsport’s prize money structure could change, and that Ferrari (NYSE:RACE) may lose some financial privileges it has enjoyed for a generation, thought not likely in fact.
With Liberty is moving to complete its takeover over F1 later this month, the focus is now shifting to how it will ramp up its popularity and increase its revenues.
One idea being considered is for there to be a fairer distribution of F1’s commercial revenues, which could mean the end of historic payments that have gone to older teams.
Ferrari, for example, receives more than $90-M just for being a part of F1, a figure that is more than 2X that outfits like Manor and Sauber get.
But, hang on no one would pay attention it Ferrari did not race F1, it is the sport #1 draw worldwide and the world’s most recognizable automotive brand.
Liberty’s CEO Greg Maffei suggested that the time has come for the uneven distribution to end, and that Ferrari should think about accepting such a change because there will be benefits that come from a more competitive F1 through increased sponsorship revenues. Humm
“So thinking about balancing the team payments, so they’re a little more balanced and creates more fairness, has to be weighed, in Ferrari’s mind, I would expect, by the fact that creating a great platform helps our sponsorship revenue, too, so there’s give-and-take.”
Alongside of the notion of changing the F1’s prize-money structure, a report Saturday suggested that the tenure of Bernie Ecclestone, anni 86, as the sport’s Supremo could be coming to an end.
Sky reported that Liberty was planning to announce that Mr, Ecclestone will step down as CEO, with an announcement coming as early as next week.
The report said that Mr. Ecclestone had been offered a less hands-on role with an honorary title, like life President.
The speculation about Mr. Ecclestone’s place in Liberty’s plans comes amid growing speculation that the company will announce two key appointments in the next few weeks, with former ESPN executive Sean Bratches taking a senior commercial role, while Ross Brawn will be brought in to sort out the sporting side.
|NYSE:RACE||60.35||20 January 2017||-0.11||60.31||60.5||60.01||205,500|
|HeffX-LTN Analysis for RACE:||Overall||Short||Intermediate||Long|
|Very Bullish (0.55)||Bullish (0.29)||Very Bullish (0.65)||Very Bullish (0.71)|
|NASDAQ:LMCA||29.12||20 January 2017||0.81||28.24||29.17||28.2||1,236,200|
|HeffX-LTN Analysis for LMCA:||Overall||Short||Intermediate||Long|
|Neutral (-0.18)||Neutral (-0.02)||Bearish (-0.48)||Neutral (-0.04)|
Have a terrific weekend.
Latest posts by Paul Ebeling (see all)
- Asia: Gold, USD, Crude Oil, Stocks & Commodities - June 20, 2019
- Market Technicals Signaling Fed to Cut Rates Soon - June 20, 2019
- Powell Says He Will Not Step Down If President Trump Demotes Him - June 20, 2019