Bernie Ecclestone has stepped down as Formula One’s chief executive, ending his 40-year reign over the global motor-racing series as its new US owner announced it had completed its takeover of the sport.
Liberty Media, controlled by American billionaire John Malone, agreed a takeover of F1’s parent company Delta Topco in a complex $8bn deal in September last year.
At the time, the 86-year-old ringmaster of F1 said he expected to be involved running the group for a further “two to three years”.
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But on Monday night, following negotiations that had continued throughout the day, the US company said that Mr Ecclestone would move to the honorary position of “chairman emeritus”.
Though the position is understood to remove any operational control from Mr Ecclestone, Liberty Media insisted he would remain as a “source of advice for the board of F1”.
Chase Carey, a former executive at Rupert Murdoch’s
21st Century Fox, who has already been appointed chairman, will also take the chief executive’s role. Ross Brawn, one of the most successful F1 team managers and technical directors of the last few decades, will be motor sports managing director. ESPN veteran Sean Bratches will be commercial managing director.
The moves came as Liberty Media announced it had completed its acquisition of F1, with the company soon to be renamed Formula One Group.
“I’m proud of the business that I built over the last 40 years and all that I have achieved with Formula 1, and would like to thank all of the promoters, teams, sponsors and television companies that I have worked with,” said Mr Ecclestone in a statement. “I’m very pleased that the business has been acquired by Liberty and that it intends to invest in the future of F1.”
Mr Carey said he was “excited” to take on the “additional role of CEO. F1 has huge potential with multiple untapped opportunities.”
Greg Maffei, president and CEO of Liberty Media Corporation, said: “There is an enormous opportunity to grow the sport, and we have every confidence that Chase, with his abilities and experience, is the right person to achieve this.”
Mr Ecclestone, one of international sport’s most colourful characters, is credited with transforming an amateur motor-racing series enjoyed by enthusiasts into a multibillion-dollar enterprise with millions of fans around the world.
“Formula One wouldn’t be where it is today without Bernie,” said Zak Brown, one of the executives in charge of the McLaren F1 team. “I can’t think of another person who has had as much influence in building a global sport as Bernie.”
Last week, the FIA, the sport’s governing body, gave its approval of Liberty Media’s acquisition, one of the final steps required for the takeover to be completed.
The selling shareholders, made up of a consortium of shareholders led by CVC Capital Partners, have received $3.05bn in cash, a $351m exchangeable debt instrument and 56m newly issued shares in the company.
Liberty Media said the transaction price represented an enterprise value of $8bn.
The company has plans to revive commercial interest in the sport, including selling race naming rights and staging ancillary events around its 21 grands prix in an effort to turn races into “Super Bowl” style events.
It also plans to seek digital screening deals in an attempt to reach younger viewers and reach markets such as the US where F1 has struggled to gain large audiences.
Date:January 24, 2017