Formula 1 has always been the rich sport which is out of bounds for most people to participate/own/operate.
But nonetheless, it has grown multi-bounds in the last 2 decades.
Television took Formula 1 to newer markets and now it wants to go bazooka into the next decade.
The Plan : IPO and raising a staggering $10 Billion. This bonkers money is what “Formula One Group” (the F1 owning consortium) wants, to take F1 to newer countries and audience.
Formula One Group : The ownership of F1, is a saga worthy of a thriller movie. Currently CVC Partners (a Private Equity fund) owns 70% of the holding company with JP Morgan owning 20%. Importantly the rest lies with the superman of F1 – Bernie Ecclestone & his family.
Mastermind : The real brains behind F1 is Bernie Ecclestone. He has the final word and this time around, the word is $10 Billion.
The Plan : To file for an IPO in Singapore (Asian cities have more to offer these days than the west). This is to result in a dilution in ownership by CVC.
The Catch : Its not a easy world in F1. Each team holds individual commercial agreements with the owners and this has put F1 itself in trouble. There lies a danger of a split by the top teams to form their own race series.
If things work out in the next Concorde Agreement (Agreement between Teams and F1 Owners), then an IPO with that kind of money will put F1 on a scale never seen before.
Bottomline : If Bernie is able to pull off this move, it will ensure a healthy and prosperous future for F1 with even more moolah, glamour and racing.