...and in the meantime Bernie is wondering how he can capitalize on this. I think that is why he has been silent. Bernie doesn't really make any $$ on F1 anymore. He sold out to CVC and retained the chairman position. He has a small % of ownership, but it's minute. If FOM goes bankrupt, CVC loses big, Bernie remains all set. He can (and I am sure has been) get in touch with the FOTA guys, offer to be the promoter for only a 25% cut (or whatever), let CVC go down the tubes, and despite only having a 25% cut, it's still a much bigger slice of the pie than he's got now. His only problem would be that it'd be a breach of fiduciary duty in his CVC chairman role. But I am sure he can find a way around that... the moment he feels he's done at CVC, he can just resign and bring a lot of contacts and contracts along with him. He's got so many companies set up in circuitous ways that I wonder if he even knows what rights he has (or hasn't). But he is as slippery as an eel and no doubt can pull it off.
Interesting times. Although I'm not sure of this, I suspect: - Bernie will not allow this to happen and somehow turn on Max and make him the fall guy. - Bernie has the newer tracks obligated to him. We may see the return of Montreal, Indy, Spa, Buenos Aires? Fuji? The older tracks (and more entertaining IMO) like Silverstone, Monaco, Interlagos, Monza, Nurburgring should be able to sign up whomever they please. What a great calendar this would be What I know little about is TV rights. If Bernie can somehow prevent the breakaway series to be broadcast on BBC, this will be difficult for FOTA to overcome.
I'm not so certain. F1 has changed dramatically over the last 5 years. Long-time venues have been replaced by new circuits in emerging economies that promise tremendous wealth to FOM, rules have become so inconsistent that WDC challenges have been revived after races by retroactively penalizing drivers, and the regulations have somehow become more restrictive and inconsistent simultaneously. Maybe the FOTA feels not only that BernieMax have been subversive, divisive and not worthy of trust but also have disregarded the fans that have supported it all these years (by leaving historical circuits for new digs in the Middle East and Asia). Of course, I'm CERTAIN they have a big issue with 50% of the revenues from F1 going to a single party while they are left to battle for the other half among them all. BernieMax would have to relinquish the series and give the FOTA equal rights to regulate in order to avoid the mutiny.
There's always the online option. But still, with the money from TV contracts going back into the sport and without Bernie and Max ripping everyone off, there's likely to be MUCH better coverage available. Everyone was at bare bones and there was no investment. FOM's world feed wasn't even in high-def! Without FOM and FIA's incompetence, marketing and coverage will enter the 21st Century where the rest of us live. Jeez, this news just made my week!
Not too sure about that. Silverstone, and the rest, makes its income from all the non-F1, FIA sanctioned races through the year. That's potentially a very big grip on the short and curlies should the FIA decide to squeeze. Question is how big this war gets before its over.
I am no expert on TV rights, but I am sure he would have no sway to limit what racing BBC shows. BBC is a government owned agency, and Bernie would likely get it broken off in his azz if he tried to tangle with that particular gorilla. As for other networks, I would say most of the big networks are much bigger than FOM and I doubt Bernie would have been able to stroke a deal preventing them from carrying competing races. I think there would likely be plenty of opportunity for networks to carry the FOTA series. In the USA, I'd bet that SpeedTV would be ready and willing to sign up - and if the FOTA series becomes "the" series, then what leverage would Bernie have? Threaten to pull the rights to show an encrappened F1 series?
The FIA could get into big trouble if they punished tracks for running a FOTA series by unfairly taking away other racing. Anti-trust laws would kick in at that point.
Jeez didn't quite think it would come this far. Now I'm starting to think there might not be any turning back.
Good point. I recall reading his comments on the difficulty of building a series and he talked about broadcast rights specifically. I still say Bernie knows better than to allow a breakaway series to materialize.
Great track, but Indy is better suited. Unless, of course, there are two US races. Nothing wrong with that
Yup. The established tracks are fair game but I recall reading that Bahrain, in their desperation to stage an F1 race, made all sorts of obligations to Bernie, which makes me suspect Singapore and Malaysia.
It could turn into a mess, but if the FIA tries to play hardball on this aspect, it would make Max's position even more untenable... how could he possibly argue that the FIA should sacrifice and destroy other series just so that he can continue an already lost battle with FOTA? Also there is laws regarding Restraint of Trade that limit contractual obligations in relation to freedom to conduct business. If the FIA tried to blackmail tracks into not taking on FOTA races, they could find themselves at the mercy of lots of different judicial systems in the EU.
Hmmm.. F1: Abu Dhabi, Malaysia, Valencia, Turkey, Bahrain FOTA: Silverstone, Monza, Monaco, Nurburgring, Indy, Montreal, Adelaide, Suzuka, Imola I know which series has the tracks people will care about. Bernie can run his GP3 cars @ his sandy desert tracks, and the real heart of Formula 1 can race at Monaco and Monza and Silverstone and Suzuka and tracks that people actually want to see and watch cars and drivers they know and care about and want to see run.
Yup, the microsecond that Bernie realizes his needs will be better served with FOTA, and the microsecond his lawyers devise a way to make it happen, he will come out with a statement that he has always been in support of FOTA and is ready to use every resource available to ensure they are *the* premiere racing series. That will be another whole round of hilarity
Why pay him a 25% cut? For what purpose? I don't understand how Bernie, Max, and F1 have any leverage. If the teams say "see ya", F1 is pretty much over. Couldn't the teams say, "Give us 100% of the revenues and profits" if they really wanted it? I wonder if the teams would sort of adopt a model like a NFL/NHL/North American pro sports league. Each team, "owner", would get a vote (on rules, spending, new tracks, ect.) and hire a commissioner.
As long as FOTA keeps a lifeboat handy for him once the ship is steady and on course and out to sea. Or a vest will do. Better yet walk the plank.
Agreed, but it's hard to know where the money is these days. Ferrari were selling lots of cars over there not so long ago. The picture would be different if the new tracks didn't make the races so dull. Fortunately for us, they do!
Ron, Who are we all kidding here.........all this banter back and forth is just a cover for the real issue......Max's removal. If that happens I predict Bernie will negotiate with FOTA and they'll alll go back to business, but ONLY if Max goes. So now we will see how loyal Bernie will be to Max now. I predict he gets the FIA to make a change, then and only then will FOTA back down. IMHO
