26/01/2017
NEWS STORY
Just days after receiving shares in F1's new parent company under Liberty Media, a number of its most senior past and present managers including Bernie Ecclestone are putting them up for sale.
A historic day, which effectively marked Ecclestone's departure from the sport as Liberty finally won control, saw existing shareholders in F1 handed stakes in its new parent company. It is floated in New York and has the unfortunate stock market abbreviation of FWONK.
While most shareholders are prevented from selling their stakes for six months following the buy-out, a number of current and former management are exempt including Ecclestone, Sir Martin Sorrell, Sacha Woodward-Hill and Duncan Llowarch.
According to The Guardian a prospectus released yesterday reveals that seven shareholders are to offload around $39.9m in shares in the Formula One Group (formerly known as Liberty Media), stating that it "relates to the offer and sale by the Selling Stockholders of up to 1,357,700 shares of FWONK" which closed at $29.42 on Tuesday.
Ecclestone, who now has the title 'Chairman Emeritus', having been 'deposed' as F1 supremo by Chase Carey, is selling 950,599 shares worth an estimated $28m, leaving him with just a 0.5% stake in the company.
Critics are bound to claim that selling the shares is Ecclestone having a 'hissy fit' after losing his role and then having to hear Liberty crowing that the sport had stagnated because of him. However, that's clearly not the case as he is joined by two managers who Liberty has retained - chief financial officer Llowarch, who is putting up $4.6m worth of his shares for sale, and chief legal officer Sacha Woodward-Hill.
Sir Martin Sorrell, who founded the world's biggest advertising agency WPP and was a non-executive director of F1, is also selling $1.9m of his stock. Sorrell's 'dumping' by Liberty is something of a surprise as one would have thought the American company would have wanted proven experts like him to fill its ranks.
The off-loading of shares follows the teams' own decision not to take advantage of Liberty's offer to buy a stake in the company. Initially offered the opportunity to buy $1.1bn of its shares the teams declined. Liberty has now reduced the amount to $400m but still the teams are not tripping over themselves to take the American company up on its 'special offer'.
It's believed that Liberty has set a June deadline for the teams to decide whether they want to take advantage of the share offer, then again, with the teams' current contracts with the sport due to run out in 2020 it is debatable as to who is really under pressure.