Formula One Group’s new chairman Chase Carey insists Liberty Media’s purchase of the sport is not solely aimed at “taking the money”.
John Malone’s mass media conglomerate recently agreed to acquire Delta Topco - Formula One's parent company - in a deal that values the sport at $8bn (£6bn). Liberty has placed 21st Century Fox vice-chairman Carey as chairman alongside long-standing F1 supremo Bernie Ecclestone, who continues as CEO.
Liberty will replace CVC Capital Partners as majority shareholders, though the private equity firm will remain involved as “65% owners of the Formula One Group's equity”.
F1 has been very profitable to CVC since it took a 35% controlling stake in the series in 2006 but the investment company has been criticised for simply reaping the rewards without giving something back.
Talking to the official F1 website, Carey explains that Liberty has long-term plans for the sport.
“Of course, profits are important - but realistically the primary goal of the business that I have been in has always been to build long-term value,” he said. “So the goal is not what can be achieved in the next 12 months, but where you are going to be in three to five years.
“That means the willingness to make investments. And I do think that Liberty, to its credit, has a history as a long-term shareholder. They are supportive and they know their business, as they have been in the media and entertainment space.
“Formula One is a great business, a great franchise and we want to build on that and I see that there is opportunity too for stepping up by investing in all sorts of areas - some of the historic areas in making the racing great, making tracks more exciting than ever; investing in marketing the sport so that it connects with fans in the right way; investing in new platforms - digital platforms - that really are able to connect to the fans with the information that they really want, taking advantage of everything that the sport has to offer.”
Talking about potential areas of growth, Carey, who started touring the F1 paddock to meet key figures at Singapore last weekend, added: “The historic pillars are important and we will continue to grow those - make the events bigger from the promotion side of it, and with broadcast probably widen the core television experience to today’s needs.
“I believe that a good digital product makes the television product more rewarding. Marketing the sport, in telling the story of the stars and heroes and the incredible machines. Then strengthen it geographically. So there is not ‘the cash cow’, but there is growth possibility in every area.”
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