30/09/2015
NEWS STORY
EU investigation into F1 could be the final straw when it comes to Red Bull leaving the sport.
The investigation into the sport's governance and how its revenues are distributed was sparked when Sauber and Force India lodged official complaints with the EU competition commission.
Amongst other things, the two teams are seeking an answer as to how 65% of the sport's prize money is shared by five teams who also have a major influence over the sport's rules.
Under the current system, Red Bull, which only entered the sport in 2005 after buying the Jaguar F1 team, received around £25m more than Mercedes last year, despite the German team winning both titles.
Already seriously contemplating leaving F1 after failing to secure an engine deal with Mercedes and unsure if it can get same-spec units as the works team from Ferrari, Dietrich Mateschitz has made no secret of his anger, his loss of passion for the sport, and the possibility of walking away, a move which could signal the end of two of the current teams.
His frustration will not be helped by the fact that the EU investigation could see the Austrian team forced to hand back some of its prize money if it is ruled that the payment system was illegal.
"It doesn't matter to us who gets the money and how it is spent," Bernie Ecclestone told The Times. "That is up to the teams. If they want things doing differently, then we will do it differently."
Yesterday's confirmation that Sauber and Force India have gone ahead with their complaints resulted in a hectic day for the F1 supremo with (CVC boss) Donald Mackenzie understood to have headed to Ecclestone's office at the crack of dawn.
CVC, which owns a 35% stake in the sport, is understood to have been specifically singled out in the complaint.
The American private equity house bought its stake in 2006 with two loans. In that time it has halved its stake to 35% and reaped around $4.4bn.
According to a report in the Guardian in July, this means a return on investment 351.8% and with its remaining 35% stake controls the voting rights of F1's Jersey-based parent company, Delta Topco. This gives the stake a valuation of up to $8bn and if CVC achieves that price, it will push return on investment to over 1,000%, making it the most profitable deal in the company's 34-year history.