Tuesday, December 06, 2005

Are Lehman Brothers looking to sell their 14%?

Rumours were that CVC's recent buyout of Bambino Holdings (the Ecclestone family trust) and Bayerische Landesbank may be invalid because JPMorgan and Lehman Brothers (who own the rest of the commercial rights to F1) might have first refusal on the shares. However, today it transpires that JPMorgan have sold their shares to CVC as well, leaving CVC with an 86% share. Since Lehman Brothers apparently want to sell up too, this might clear the way for CVC to own the entire commercial rights to F1. The deal keeps Bernie Ecclestone as Chief Exec.

The sale might simplify board decisions, I guess, which could be good for the sport. However, I think the biggest problem with F1 at the moment has nothing to do with the commercial rights, and everything to do with the FIA. I suspect that the 2006 rule book could well turn out to be a farce. They're failing to cut costs, and annoying the fans, which means that they're failing in their two key objectives...

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