Formula One is Reportedly for Sale, Once Again
Less than 3 years after Liberty Media acquired F1, John Malone and company are said to be exploring scenarios that would decrease their stake in the international racing circuit; everything from an exit – to the introduction of new equity partners – is under consideration.
It’s been Liberty’s inability to add races, sign major sponsorships, attract younger fans or drive digital revenues that have collectively indicated the sport’s C-suite is in over their heads and taking direction from the wrong places (cough McLaren cough).
Keep an eye on former owner Bernie Ecclestone. The British business magnate has the capital, knows how to operate the business and can likely reclaim the circuit back for a fraction of the $8 billion he sold it for.
Sources have indicated that the UK-based DAZN Group is piling up the losses on its P&L and is considering selling off the company’s B2B play – Perform Content – to fund additional rights acquisitions.
The initial plan had been to use Perform Content’s cash flow to cross-finance the company’s D2C sports-centric streaming service, but skyrocketing rights fees for live sports content – like the $1 billion they spent for Matchroom Boxing cards, the $350 million spent to land Canelo Alvarez and the $300 million for live MLB cut-ins – has created the need for some short-term financing.