FIA approves the sale of Formula One commercial rights to Liberty Media

AFP/Getty Images
Philip Duncan19 January 2017

Formula One is poised to enter a new dawn after the FIA, its governing body, unanimously voted in favour of Liberty Media taking ownership of the sport.

The announcement, following a meeting of the World Motor Sport Council in Geneva on Wednesday, comes just 24 hours after shareholders for Liberty Media - an American media organisation - gave the green light to complete their purchase of the sport.

The takeover deal is reportedly valued at more than £6billion, and could transform a sport which has been run by Bernie Ecclestone for four decades.

The buyout sees private equity firm CVC sell its 35.5 per cent share of F1. Liberty Media already held a 19.1 per cent stake in the business, and the takeover could now be completed by March.

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"During the meeting, the representatives of the prospective new owner made a detailed presentation of their strategy," a statement from the FIA published on Wednesday night read.

"The members of the World Motor Sport Council then had the opportunity to ask questions about the specifics of the agreement, the ongoing working relationship with the FIA and Liberty's plans for the sport.

"Liberty, Formula One Group and the FIA intend to collaborate to create a constructive relationship that will ensure the continued success and the development of the FIA Formula One World Championship in the long term.

"The World Motor Sport Council's decision confirms the FIA's belief that Liberty, as a renowned media organisation with expertise in both sport and entertainment, is clearly well positioned to ensure the continued development of its pinnacle Championship."

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American Chase Carey was announced as Formula One's new chairman last year after Liberty agreed to acquire the sport. Ecclestone, who turned 86 in October, remained as its chief executive.

Liberty's takeover is likely to see Formula One undergo an enormous facelift. It is thought the prospective new owners could also be more sympathetic to Silverstone, the venue for the British Grand Prix, after stating they want to keep the sport's historic circuits.

Liberty is also hopeful of having a greater impact in America, a country which Formula One has so far struggled to break.

American businessman John Malone, Liberty Media's 75-year-old chairman, earned the nickname Darth Vader for his hard-line attitude. He has built up a cable media empire within and far beyond the United States.

Liberty owns Virgin Media and also has a large share of the Discovery Communications group, which has the Discovery Channel and Eurosport in its portfolio, and baseball's Atlanta Braves.

The new Formula One season gets under way in Melbourne on March 26.

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