Date registered: Oct 2005
Vehicle: 107, 115, 116, 123, 124, 126
Mentioned: 1 Post(s)
Quoted: 1 Post(s)
I think the bigger picture here is when and if Formula 1 can pull off it's IPO and go public. I believe the whole motivation for a New York market race is to advertise to Wall St. You can't really have a meaningful IPO without a New York presence. Even though the IPO will be on the Singapore exchange, there has to be plenty of trading with Wall St.
So what's standing in the way? Three things made an IPO impossible...first, in the short term Bernie's legal problems, longer term the future leadership of F1, and finally the Concorde Agreement. Without locking up the commercial rights of F1, and without long term credible leadership no one in their right mind would buy stock. There's nothing to sell.
It looks as if the Concorde Agreement issues have been addressed. Bernie's legal problems are huge now that he's been indicted. These have to be addressed, and addressed quickly. Companies like Mercedes cannot do business with other entities involved in corruption. I believe a settlement is probably in the works. But ultimately Bernie's gotta go.
Longer term, if CVC (large stakeholder in F1) goes ahead and buys IMG as rumored, IMG could provide credible long term leadership for F1. Then, and only then, will a stock offering make sense. And then, and only then, a New York market race makes sense.
Let's remember, Bernie was hot to even subsidize this race back when it looked like a flotation of stock was imminent. Now that he's going to be out of the picture, it will be up to CVC to be motivated enough to make it happen. I believe they will, because they can only unlock the value of their shares by taking F1 public.