F1: Liberty Media (NASDAQ: ) May Change Prize Money Structure

F1: Liberty Media (NASDAQ:  ) May Change Prize Money Structure

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.

Symbol Last Trade Date Change Open High Low Volume
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)
Symbol Last Trade Date Change Open High Low Volume
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.

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