Mon
Dec 22 2008

Bernie blasts Ferrari

Alan Henry

Bernie Ecclestone last week offered a robust counter-attack against Ferrari president Luca di Montezemolo on the issue of F1 financing.

Ecclestone pointed out that the Maranello squad was the last team who ought to be complaining, bearing in mind that they get a special extra slice of the F1 commercial rights cake  before the remaining 45 per cent is split up amongst the competing teams.

Bernie and CVC Capital Partners, in their role as the sport's commercial rights holder, keep the rest.

It's been said many times before that the way in which Bernie seized the initiative when it came to shaping the sport's finances three decades ago remains the most remarkably accomplished commercial hijack ever.

Visionary that he is, Bernie could see the commercial possibilities of the F1 business. Then, in his role as president of the Formula One constructors' association and owner of the Brabham team, he sold the other team principals on the deal that made them all supremely rich. And Bernie richer still.

Ironically Ferrari, despite being the richest team both in terms of its own resources and the income streams that flow into its coffers from the sport's commercial rights income, is demanding that Bernie reviews the manner in which this lucrative income is shared around.

My sources tell me there is no chance of any more cash on offer for the

teams until 2013 at the earliest. Bernie thinks that if 10 teams can't get by sharing $450m of annual commercial rights revenue in addition to their sponsorship funding, then they're probably not very good businessmen.

That’s certainly an explosive point of view.

 

Sign-in or register to add your comments

About Alan Henry

Our F1 expert has been covering the sport since Lewis Hamilton's father was a teenager (do the maths yourselves on that one), and writing for Autocar since 1994.

Comments

davidv11 December 22, 2008 12:40 PM

is it me or is F1 the most legally corrupt sport in the world??

Casanova December 22, 2008 1:11 PM

How can Bernie possibly justify his enormous slice of the pie? Does he have hundreds of highly specialised employees and a brand new car to design in a few months, every year?  No, he just has his mansions and QPR to throw the money at...

The Colonel December 22, 2008 1:27 PM

"How can Bernie possibly justify his enormous slice of the pie?"

What is his slice of the pie?  Didn't see it in the article.

scrap December 22, 2008 1:51 PM

What's his slice of pie once his divorce goes through? Do you not think this is influencing his current decision-making?

Or are Bernie's personal affairs (despite the obvious financial implications) not to be discussed on autocar? It certainly seems that way.

Casanova December 22, 2008 2:05 PM

Well, if the teams share 45% (and I didn't realise until reading this that Ferrari had a larger share), then that leaves 55% which presumably is all Bernie's?

The Colonel December 22, 2008 2:20 PM

No. Ferrari's "special extra slice" takes the team's share up to around 47%.  A further 30% goes to the FIA.  That leaves 23%.  

Do the Formula One Group of companies operate from a garden shed occupied soley by one Mr B Ecclestone Esq?  Unlikely.  It costs money to run a company, especially one that operates almost continuously and globally, so it is unlikely that he, personally, trousers the entire remaining 23%.

Of course there are other income streams beyond the tranches dished out by FOA and I'm sure Ecclestone is very well remunerated for his position at the head of the company, but I do not see why that should make him the target of so much ire, especially among these pages (forum/blogs, not Autocar).

On the extra money for Ferrari, as I understand it, this comes about due to their historical association with F1 (motorsport generally) and the percieved draw this brings to the sport.  I would suggest it is about time that Mclaren be included in that, and possibly Williams too.

ThwartedEfforts December 22, 2008 2:22 PM

Ecclestone is looking more and more like John Pertwee's older sister. If I had to watch as much F1 as he must have to, I'd look like a sour faced old harridan too.

Casanova December 22, 2008 4:16 PM

Well OK, even if it is 23%, its still obscene.

Imagine if one despot creamed off 23% of all the income from the Premier League - it could never happen.  The clubs share the income after the sport's running costs are paid, and are thus very rich, leading to a successful and high quality sport.  (Whilst I am not a football fan, it is relevant to observe the success of English clubs in Europe and to compare the financial model with F1).  

The billions Bernie has made from the advantageous position he manoevered himself into back in the 70s are surely enough.  With no current Concorde Agreement in place, Bernie has lost the biggest stick he can wave at the teams, giving them a much better bargaining position. Its time for a fairer F1.

P1MUY December 22, 2008 4:23 PM

This info re Ferrai's extra cash surprised me. I thought that Ecclestone was letting a cat out of the bag. But from the lack of response all round, I take it that the other teams knew about Ferrari's extra $80m. Is this correct?

BTW - Ecclestone's stranglehold on F1 monies and his control over F! never ceases to sicken me.

The Colonel December 22, 2008 5:05 PM

"The (Premier League) clubs share the income after the sport's running costs are paid"

So, how are the Premier League's need for running costs different to FOA's?

Peter Cavellini December 22, 2008 10:55 PM

The only way this sport as its called will be run without confrontation is to make sure the governing body has no financial contacts with the sport ,there should'nt be people running the sport and making billions out of it, when joe public hears of these massive profits for individuals they're going to get very angry indeed.F1 teams are going ti need financial support in the next two years and this money should come out of the seriously rich people who run it, i mean Honda is out and judging by todays news Toyota might follow too, whose next?it could be BMW and if they go its only a matter of time that Ferrari go because it would be deemed a one horse race by the media.No, F1, Bernie Ecclestone and all involved need to think long and hard if they want THEY'RE sport to survive...over to you Bernie !

touchwood December 24, 2008 7:40 PM

ThwartedEfforts- "Ecclestone is looking more and more like John Pertwee's older sister."

A bit unfair to John Pertwee's sister, I feel.

One of my wishes before I leave this world is to see Bernie Ecclestone consigned to the pages of history. And his number one yes man, Max Mosley.

As to how did Bernie get the control he has - I don't know but I do know that a lot of the BRDC were against him, and this may go some way to explaining his attitude to Silverstone

Iand666 December 27, 2008 9:21 PM

Oh, come on! I think Andy Warhol's bastard sibling will need every penny he can to finance his next Amazonian bride.

All about Autocar

Newsfeeds

Subscribe to our news with our RSS feeds

Advertise

To advertise with Autocar contact us

Buy our magazines

Discover our titles at themagazineshop.com

Autocar latest issue - cover 8.2.12

NEW ISSUE OUT NOW

FAST, EASY & SECURE
SUBSCRIBE NOW>>