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F1 float may finally get the green light in Singapore
Source: Agencies |
May 5, 2012, Saturday
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Print Edition
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PLANS to float Formula One may finally get the green light in the coming weeks, a proposed listing in Singapore giving investors a chance to buy a chunk of the business behind the high-speed motor racing tour.
The planned listing in Singapore is an attempt to tap into Asian appetite for prestige brands and growing enthusiasm for Formula One racing in the region.
The idea of floating Formula One has been around for more than a decade but there appears to be real momentum on this occasion to sell off as much as 30 percent of the company.
Formula One is something of a paradox as a business.
Its 20 races are watched by more than 500 million television viewers, but details of its finances are harder to access.
Formula One chief Bernie Ecclestone made a presentation to bank analysts last week at London's plush Savoy Hotel and further financial details are expected to be published in coming weeks as part of efforts to woo investors.
Revenue for the current season will reach US$2 billion for the first time, according to a report by industry monitor Formula Money.
Fees paid by tracks around the world to host races that bring glamour and exposure to cities are the largest part of that income at an estimated US$700 million, exceeding TV income.
Based in London and run by the 81-year-old Ecclestone, Formula One has only around 250-300 staff.
It does not own its own circuits and it costs teams such as Red Bull, Ferrari and McLaren upwards of US$100 million per season to compete in its races around the globe.
What Formula One Group does have are commercial rights to the sport for the next 98 years and a brand that Briton Ecclestone has built up over the last four decades.
Banks UBS and Goldman Sachs have been hired to lead an initial public offering that could value the business at up to US$10 billion.
The planned listing in Singapore is an attempt to tap into Asian appetite for prestige brands and growing enthusiasm for Formula One racing in the region.
The idea of floating Formula One has been around for more than a decade but there appears to be real momentum on this occasion to sell off as much as 30 percent of the company.
Formula One is something of a paradox as a business.
Its 20 races are watched by more than 500 million television viewers, but details of its finances are harder to access.
Formula One chief Bernie Ecclestone made a presentation to bank analysts last week at London's plush Savoy Hotel and further financial details are expected to be published in coming weeks as part of efforts to woo investors.
Revenue for the current season will reach US$2 billion for the first time, according to a report by industry monitor Formula Money.
Fees paid by tracks around the world to host races that bring glamour and exposure to cities are the largest part of that income at an estimated US$700 million, exceeding TV income.
Based in London and run by the 81-year-old Ecclestone, Formula One has only around 250-300 staff.
It does not own its own circuits and it costs teams such as Red Bull, Ferrari and McLaren upwards of US$100 million per season to compete in its races around the globe.
What Formula One Group does have are commercial rights to the sport for the next 98 years and a brand that Briton Ecclestone has built up over the last four decades.
Banks UBS and Goldman Sachs have been hired to lead an initial public offering that could value the business at up to US$10 billion.
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