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Formula One’s ownership could be on the verge of changing hands, with rumours of a potential joint bid being made by Qatar and the owners of the Miami Dolphins.
The current owners of the sport, CVC Partners, are not believed to have received an official offer, but have been reticent on divulging any negotiations.
Likewise, Formula One’s (and world motor sport’s) governing body, the FIA, has not received any formal application – a requirement before any purchase could take place.
Nevertheless, a consortium comprising Qatar Sports Investment and RSE Ventures is believed to be eyeing a controlling stake in the sport, with both groups having extensive expertise in sports management.
Founded in 2005, Qatar Sports Investment (a subsidiary fund of Qatar Holdings) have made a conspicuous trolley dash in acquiring sporting teams (such as Parisian football club Paris Saint-Germain), but in addition have set-up an expansive network of sport TV channels under the cordon BEIn Sports, which served to play a strategic role in Qatar’s controversial 2022 FIFA World Cup bid.
In light of the continuing FIFA corruption scandal surrounding the 2022 World Cup, a diversion towards Formula One could serve as an analeptic cure for Qatar – which has had numerous attempts to host a Formula One race blocked by the neighbouring state of Bahrain.
The U.S. arm of the syndicate, RSE Ventures, is kept by Matt Higgins and Stephen Ross, owner of the Miami Dolphins (of which Higgins serves as an executive). In addition to their North American commercial enterprises, RSE Ventures have invested heavily in various technologies, including FanVision; the handheld device that is the official in-venue content provider of NASCAR.
While Qatar Sports Investment’s interest in Formula One could be seen as a FIFA deflection, their own commercial sporting familiarity – aligned with RSE Ventures’ competency in sports management – could not only be advantageous to Formula One after years of mismanagement by its current owners, but build Formula One’s presence in the U.S. – a market the sport has consistently failed to crack.
CVC themselves have progressively sold down their own stake in the sport; most recently comprising a $1.6 billion share being sold on to BlackRock, Norges Bank and American asset management group Waddell & Reed.
There is, however, talk of further Formula One window-shoppers entering the mix, with suggestions of a potential ‘team takeover’ bid comprising Ferrari, Mercedes, Red Bull and McLaren in conjunction with Formula One’s chief executive Bernie Ecclestone.
Such a move would fall in line with recent derogatory comments made about the sport by Red Bull owner Dietrich Mateschitz, Niki Lauda (Mercedes) and Ecclestone himself, as a truncated objective of lowering Formula One’s selling price.
While such a move is conceivable, it’s unlikely Ecclestone would take kindly to such an alliance – given his public dissatisfaction directed towards Formula One team’s management (or rather perceived mismanagement) of their affairs. As such, any sale would be more inclined to fall in favour of an external investment group.
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