Formula 1’s 2020 deal with teams not enough

While Formula 1 heads into the Winter Season, concerns over its longevity still bubble at the surface of the Constantin Medien trial regarding the sale of F1 in 2006 to CVC Capital Partners.

According to our friend, Christian Sylt, CVC boss, Donald Mackenzie said:

“Even now, after the latest contracts, which have been signed up to 2020, the first thing any new shareholder says to me: it’s not enough. Can’t we make it a longer period? We don’t want the uncertainty,” said Mackenzie

The teams have separate commercial agreements with Formula One Management and the FIA has an agreement but the tripartite arrangement known as the Concorde Agreement is yet to be ratified.

According to Sylt, any re-negotiation of the team’s length of contract may prolong discussions.

If CVC/FOM are still serious about floating the series, long-term contracts would be a very attractive asset but as it is, 2020 is not a desirable length of time. One presumes that 83-year-old F1 boss Bernie Ecclestone will not be at the helm of the operation in 2020 and CVC would most likely be keen to see a long-term arrangement with the teams to increase the value of their investment for flotation purposes.

Will Formula One be ran by a Ecclestone-type of character? By a commission of investors? Will the teams be part of the leadership of F1 in the future? Time will tell but BayernLB and others who are waiting to pounce should a ruling be favorable to their cause of proving under-valuation of the asset back in 2006 are stalking the current court case.

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