Ecclestone out, Liberty Media in: A Look into the Shifting Ownership Structure of Formula One [Ecclestone raus, Liberty Media rein: Ein Blick in die sich verändernde Eigentümerstruktur der Formel 1]

Evens, Tom; Tickell, Samuel; Naess, Hans Erik

Abstract

This chapter examines the shifting ownership structure of Formula One (F1) and highlights Liberty Media’s purchase of F1, with the US media conglomerate ending 40 years of governance by the British entrepreneur Bernie Ecclestone. The chapter will reflect to what extent this event opens a new chapter for motor sport. First, the chapter discusses the interplay between sports and the media business and puts corporate integration between sports and media organisations into historical perspective. It claims that any trend towards ownership of sports organisations had been subsiding since the late 1990s, but that vertical takeovers have received renewed interest lately. Second, the chapter describes the shifting ownership structure of F1 and examines the latest acquisition by Liberty Media. With this deal, the former cable company further develops into an entertainment conglomerate with multiple activities in the growing leisure business. Finally, the chapter elaborates on the possible commercial future of F1 as a media sport and critically examines Liberty’s strategy to grow audiences and fully embrace digital media while protecting its broadcast television revenues.