London: A proposed takeover of Formula One by publishing tycoon Rupert Murdoch and Mexican Carlos Slim, reckoned to be the world's richest man, is destined to flounder when the Grand Prix teams have their next crucial get-together.
The sport, estimated by F1 ringmaster Bernie Ecclestone to be worth "six or seven billion dollars", has been targeted by billionaire Australian Murdoch. Ecclestone, in charge of F1 for three decades, insists his treasured domain is not for sale and says the chances of a takeover are "rubbish".
He runs the sport for CVC, a private equity company, who last year enjoyed a $527million (Dh 1.935 billion) audience for their worldwide show. These are precisely the figures that have attracted Murdoch, and his financial helpmate Slim, sponsor of fellow Mexican Sergio Perez, the up and coming young Sauber Grand Prix driver.
Contract renewals
But at the end of next year, the teams gather to discuss the Concorde Agreement when talk of contract renewals will be the issue, particularly ensuring free-to-air availability to worldwide TV stations of their sport.
Ecclestone, at the teams' behest, insists: "It has always been our intention to broadcast free-to-air television wherever possible".
That would hardly be possible if News Corp, Murdoch's TV empire, grabbed control of F1.
The teams commit to take part in F1 by signing the Concorde Agreement which holds a clause commmitting the rights holder — Ecclestone — and the sport's rulers, the FIA, to ensure that the world title chase is shown free to air where there are suitable broadcasters prepared to take it.
Any changes to the agreement need consent from every team and it is up for renewal at the end of 2012.
If Murdoch did manage a takeover the rationing of racing images, as per the current deal, would prevent his pay-per-view channels from exclusively airing F1 in key market zones such as the UK.
In 2010, nearly 50 per-cent of the teams' $1.6 billion pay-out emanated from sponsorships with an average deal worth $5.2 million, a price pepped up by worldwide exposure on free-to-air TV.
Original deal
It is an undertaking all the teams, without exception, have demanded at each Concorde get-together since the original agreement was first signed 20 years ago.
Wall Street bank JP Morgan, I believe, is advising Murdoch and his News Corp on the likely profits and pitfalls, but Ecclestone insists: "The sport is not for sale."
India Grand Prix: It will be Glitch-free
Organisers of the inaugural Indian Grand Prix Monday promised a glitch-free event and said the track was ready to host its first-ever Formula One race on October 30.
India is due to hold the race at a new $350 million (Dh1.285 billion), 5.14km circuit designed by German architect Hermann Tilke in Greater Noida on the outskirts of New Delhi.
The circuit is part of an ambitious sports complex being built by the Jaypee group that will include an international-standard cricket stadium.
"Our and our country's reputation is on [the] line. We are responsible people and we will deliver a successful race," Manoj Gaur, executive chairman of the Jaypee group, told reporters.
"The track is ready and the homologation [approval by F1 officials] of the facility will be done in July as per the timetable of the FIA [international body]."
Formula One supremo Bernie Ecclestone inspected the circuit site in October last year and dismissed concerns that preparations for the race could mirror the chaotic build-up to the Commonwealth Games in New Delhi.
