Red Bull and Renault have reportedly broken up causing new complications on the Formula circuit. This is predicted to leave Red Bull with no foreseeable option other than forcing to shift to engines made by Honda. Red Bull and Honda already have a tied association with each other in Moto GP and this should ideally give Red Bull an opportunity to leverage a financial deal that allows them to no longer pay for their engines. They might also receive considerable funding from Honda which should make Red Bull boss Dietrich Mateschitz happy.
US cable TV mogul, John Malone is ready to purchase sports-racing biggest franchise Formula1 auto racing from CVC Capital Partners Limited. On Thursday, it was announced Malone’s Media Liberty is set to pay $4.4 billion to the European dominant sport, targeting fresh audience after a constant fall in its television-viewership.
Formula was acquired by CVC in 2006, and currently stages 21 racing events around the world. Chase Carey, the executive vice-president of 21st Century Fox, has been appointed chairman of the Formula One Group, while Bernie Ecclestone, currently the chief executive, will remain in his position. Liberty also declared in order to grow, the company will need to balance its interest of host, which pay a remunerative fee to organise the races, with those of fans, broadcasters, sponsors and teams like Ferrari, Mercedes, Red Bull racing and Audi. Teams now will also be given the flexibility to invest in circuits which earlier was absent.
“I see great opportunity to help Formula One continue to develop and prosper for the benefit of the sport, fans, teams and investors alike” Carey stated in the official press conference while Ecclestone, who has been associated with the franchise for over 40 years too expressed his gratitude towards the new owners.
Despite falling TV viewership, Formula One remains highly attractive to marketers seeking to reach consumers around the world, as Media Liberty will now gamble its way through the international channel of broadcasting network.