What started as part of the European Championship of Grand Prix motor racing is now one of the most prestigious racing series organized annually.Â
The F1 sport features some of the most technologically advanced cars and equally talented drivers who compete for the title of World Champion each season.Â
With the sport now more popular than ever, it serves as an esteemed platform for investment and marketing. The car manufacturers use F1 as a marketing exercise.Â
Liberty Media Corporations is the current owner of Formula One Group.Â
Continue reading to get more insight!
Who owns Formula One Group?
The American company Liberty Media Corporation owns the Formula One Group. The company paid $4.6 billion to Delta Topco and other former owners in 2016.
Table of Contents
Key takeaways
Here are some key aspects regarding the ownership of Formula One Group:
- The American company Liberty Media Corporation owns the Formula One Group.
- Liberty Media bought Formula One Group for $4,6 billion in 2016.
- The Formula One Group consists of companies that responsibly promote the FIA Formula World Championship on a global scale.
- Delta Topco, a jersey-based company, originally possessed the exclusive rights to the Formula One Group.
What is Formula One Group?
The Formula One Group consists of companies that responsibly promote the FIA Formula World Championship on a global scale. As the ultimate administering body, it possesses all the exclusive marketing and commercial rights of the f1 sport.Â
The Formula One Management, Formula One Administration, and Formula One Licensing BV are all collectively referred to as The Formula One Group.
The Formula One Group consists of companies that responsibly promote the FIA Formula World Championship on a global scale.
Delta Topco, a jersey-based company, originally possessed the exclusive rights to the Formula One Group. The company relied heavily on its investing partners, including CVC Capital Partners, Waddel & Reed, and Bernie Ecclestone.Â
Among these, CVC Capital Partners held a large number of shares which totaled up to 35.5%.
More about Bernie Ecclestone
Bernie Ecclestone is known far and wide for his contributions to the f1 sports as the former Chief Executive Officer of the Formula One Group.
After failing to qualify as a race driver, Ecclestone shifted his focus to becoming a team owner and one of the executive members of the Formula One Constructors Association. He worked hard to gain control of the F1 commercial rights.Â
Previously, televising races was not considered lucrative, but Bernie’s fight against the idea proved everyone wrong as it brought large profits for the teams. He then established Formula One Promotions and Administration.Â
It was responsible for dividing the profits earned through TV contracts among the FIA and setting up the Grand Prix prize money.
After failing to qualify as a race driver, Ecclestone shifted his focus to becoming a team owner and one of the executive members of the Formula One Constructors Association. He worked hard to gain control of the F1 commercial rights.
Promotion and commercial rights for Formula One
The commercial rights to the sports belong to Formula One World Championship Ltd. It took over the rights from FOA after its contract expired in 2011. As the commercial rights holders, they manage the agreements for holding Grand Prix and deal in licensing fees for the use of exclusive formula one content.
Formula One Management (FOM), a subsidiary of Formula One Group, is in charge of the broadcasting, organization, and promotional rights of formula one. They are responsible for making the televised feed of all Grand Prix sessions, which are then distributed to the broadcaster’s region.
Photo of John C Malone, CEO of Liberty Media. Photo: Steven Tee, Motorsports.com
Liberty Media Owns Formula One Group
The World Motorsport council approved Liberty Media as the new owners of the rights to FIA Formula One in January 2017. With this change, Liberty Media, a tracking stock of Liberty Media Corporations, received a 100% transfer of shares from Delta Topco.
Owned by the American billionaire John C Malone, Liberty Media is a famously known mass media company. Apart from Formula One, the company also possesses ownership stakes in the Atlanta Braves Baseball team and SiriusXM.
The $4.4 Billion Deal
Liberty Media initiated the decision to buy Formula One Group for $4.4 billion in late 2016. However, the deal was not finalized until January 2017, when they agreed to buy the Group for $4.6 billion.
During the meeting, The World Motor Sports Council discussed the new owner company’s prospectus for the future of Formula One. the FIA and Formula One Group intended to ensure the continued success of the racing series by collaborating to create a good relationship.
In 2021, Stefano Domenicali replaced former CEO Chase Carey as the President and Chief Executive of Formula One Group. Chase Carey now serves as the non-executive chairman, and Ross Brawn is the managing director of motorsports.
NASDAQ
NASDAQ, ranked second on the list, is an American stock exchange based in New York.Â
Under the ownership of Liberty Media, the Formula One Group is listed in the NASDAQ as a tracking stock, which refers to a specialized equity offering issued by the company.
Frequently asked questions about Formula One Group owners
Does Bernie Ecclestone own F1?
He played a significant role in transforming the f1 sport and racking large profits by fighting for TV broadcasting rights for f1 races. After some setbacks at the start of his career, he bought the Brabham F1 team, which he continued to represent for 15 years.
Who is the CEO of Formula One Group?
He entered the motoring industry through Ferrari in 1991, where with time, he served many positions. He became the Team Principal for the Ferrari Formula One team in 2008 and won a total of 14 championships.
He also represented Ferrari in the FIA World Motorsport Council before succeeding Chase Carey as the CEO of F1.
How much did Bernie Ecclestone sell F1 for?
Conclusion
The Formula One Group heads all the departments related to the promotional activities of formula one. They also manage the commercial rights to exclusive formula one content under the ownership of Liberty Media.
Bernie Ecclestone’s remarkable contributions to the development of sports marketing were of great importance. If it weren’t for him, we might not have been able to watch F1 on our TV right now!
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Learn more about Formula One
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