New F1 owner Liberty to offer teams up to 5-per-cent share of the series
Liberty Media, the US media giant, is to offer Formula 1 teams the opportunity to purchase up to 5 per cent of the motor racing series' shares, according to a leaked internal document.
The much anticipated proposal, which was first mooted in September, outlines plans to let teams buy shares in the series at a price of $21.16 a share, with a 1-per-cent stake costing around $40 million, according to the UK’s Sky.
Teams will have until the end of January to purchase the shares before they are offered to private investors.
Liberty has indicated that it will have the option to scale back the total number of shares sold to teams to an aggregate 22 per cent if the offer is fully subscribed.
The offer means that teams that purchase shares would be entitled to a cut of the motor racing series’ annual profits but the document stipulates that constructors would not gain additional voting rights and would be obliged to retain the shares for at least a decade.
In addition, the paper states that the two teams holding the largest share would be able to nominate one director each to the board of Delta 2, the parent company of Formula 1.
Last year it emerged that Delta 2 generated operating profits of $329.9 million in 2015, up from $253.6 million in the previous year, as revenue hit $1.7 billion.
The document has also raised questions about the future of veteran Formula 1 promoter Bernie Ecclestone, as it informs teams that they will be notified of any changes to the series’ chief executive role “at least five business days in advance.”
Last year, Ecclestone said he would remain with the sport for a further “two to three years” following the completion of the takeover.
In September, Liberty Media, the US media giant, agreed a $4.4-billion deal to become the biggest shareholder in Formula 1 through the acquisition of shares from a consortium of sellers led by private equity fund CVC Capital Partners.
Liberty’s deal still requires approval from both the FIA, the sport's world governing body, and Formula 1 shareholders, who meet on 17 January.
Liberty expects the deal to close before the end of the first quarter of 2017, with the Liberty Media Group set to be renamed the Formula One Group.
Liberty’s deal to acquire Formula 1 values the sport at around $8 billion.
Meanwhile, Paddy Lowe announced today that he is leaving his role as executive director of Mercedes, following reports that he is set to join rival outfit Williams.
Former Ferrari technical director James Allison is expected to fullfil the new vacany at Mercedes.