Qatar Teams Up With RSE For A Stake In Formula One
$BLK, $GS, $JPM
RSE is looking to acquire the 35.5% stake from private equity fund CVC Capital Partners
RSE Ventures, which owns the Miami Dolphins NFL team, is joining forces with Qatar to buy a controlling stake in Formula One in a deal worth $7-8-B, a source familiar with the matter said last Tuesday.
RSE is looking to acquire the 35.5% stake from private equity fund CVC Capital Partners Ltd, who sold down its holding from 63% in Y 2012 in deals that at the time gave the business an enterprise value of $9.1-B.
The commercial side of Formula One is run by British billionaire Bernie Ecclestone, 84 anni, who has turned the sport into a global money-spinner in more than 40 yrs of deal making.
Mr. Ecclestone, a former 2nd-hand car dealer and team owner, has also been a controversial figure and last year agreed to pay a German court $100-M to settle a bribery case and preserve his innocence.
CVC has tried to float Formula One, the most recently try was in Y 2013, but the plans stalled and the fund instead sold stakes to US investment groups Blackrock (NYSE:BLK), and Waddell & Reed, along with Norway’s Norges Bank.
Goldman Sachs (NYSE:GS) is working with CVC on the deal, while JP Morgan (NYSE:JPM) is working with the buyside investors.
Mr. Ecclestone told Britain’s Times newspaper that additional potential bidders emerged.
“I have no idea whether any of these people have got closer with this, but CVC are in the business of buying and selling companies,” he added.
CVC and Leonardo were not immediately available to comment, also JP Morgan and Goldman Sachs had no immediate comment.
Formula One has had major challenges to address including rising costs, struggling teams, falling viewing figures in some regions and a failure to engage a younger audience.
The sport is beset with disputes about governance and how to cut costs and give teams more money amid fears that traditional races like Monza in Italy be cut while exotic new destinations are added.
Qatar is among those seeking a race but, despite its Crude Oil and Nat Gas wealth, has so far failed to secure a slot on the calendar with Mr. Ecclestone granting Bahrain an effective veto on regional rivals.
The Qataris, whose success in securing the Y 2022 soccer World Cup has become very controversial over the bidding process and corruption within the sport’s governing body FIFA, already boast a sizeable presence in motorsport with the MotoGP season-opener among other championship rounds.
Qatar’s Nasser Khalifa Al-Attiya is a vice-president of the International Motorcycling Federation (FIM) and Formula One’s governing body, the FIA, which last year held its gala awards ceremony honoring all its champions in Doha.
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Paul Ebeling
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