Uday's Ferrari
- Thread starter matty_2004
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curtisrider
Eats Squid
agreed.Fuzzy said:
and wtf its fuzzy.
Last edited:
scblack
Leucocholic
Seeing we're getting into ownership, I thought I'd put down the actual ownership structure of Formula One, for those who are interested. I'll put company names in italics.
I'll get it as easy to understand as possible.
Formula One is run by a company called "Formula One Administration" - FOA for short. FOA is owned 100% by "Formula One Holdings".
"Formula One Holdings" is owned 100% by "SLEC Holdings".
"SLEC Holdings" is owned 75% by "Speed Investments" , and 25% by "Bambino Holdings".
"Speed Investments" is owned by the following "Bayerische Landesbank" 62.2%, "Lehman Brothers" 18.9%, "J.P.Morgan Chase" 18.9%.
"Bambino Holdings" is owned by the "Bambino Trust" in Liechtenstein (Bambino Trust is a Bernie Ecclestone family trust).
At this point I must make it clear that ownership does not necessarily translate to control, no matter how contradictory that may sound. What matters is VOTING shares, which can be a different class(or matter) entirely.
Thus it is possible to own 100% of ordinary shares, but not have control. And also the opposite - you could own as little as 20% shares, but have control.
So, looking above ownership of FOA flows to: 75% "Speed Investments"(the Banks), and 25% "Bambino"(Ecclestone).
The FOA constitution allows only three Directors, one of whom is Bernie Ecclestone, another Stephen Mullens(a lawyer appointed by Bambino, so Ecclestone controlled), and another person. FOA constitution also mean only Bambino can remove Mr. Mullens). So Bernie Ecclestone controls two of three Board members.
The banks won a recent court case, affirming that their 75% ownership translates to control. BUT, two weeks later, Ecclestone paid one pound into FOA, which paid for 50% of the voting shares in FOA. So, even though the banks own 75% FOA, Ecclestone has 50% VOTING shares, and retains control.
This is a complex set-up, and I hope people understand this stuff, but it's how Ecclestone has retained control over Formula One commercial rights, and therefore the flow of hundreds of millions of dollars per year. From Formula One, he is one of England's wealthiest people.
I'll get it as easy to understand as possible.
Formula One is run by a company called "Formula One Administration" - FOA for short. FOA is owned 100% by "Formula One Holdings".
"Formula One Holdings" is owned 100% by "SLEC Holdings".
"SLEC Holdings" is owned 75% by "Speed Investments" , and 25% by "Bambino Holdings".
"Speed Investments" is owned by the following "Bayerische Landesbank" 62.2%, "Lehman Brothers" 18.9%, "J.P.Morgan Chase" 18.9%.
"Bambino Holdings" is owned by the "Bambino Trust" in Liechtenstein (Bambino Trust is a Bernie Ecclestone family trust).
At this point I must make it clear that ownership does not necessarily translate to control, no matter how contradictory that may sound. What matters is VOTING shares, which can be a different class(or matter) entirely.
Thus it is possible to own 100% of ordinary shares, but not have control. And also the opposite - you could own as little as 20% shares, but have control.
So, looking above ownership of FOA flows to: 75% "Speed Investments"(the Banks), and 25% "Bambino"(Ecclestone).
The FOA constitution allows only three Directors, one of whom is Bernie Ecclestone, another Stephen Mullens(a lawyer appointed by Bambino, so Ecclestone controlled), and another person. FOA constitution also mean only Bambino can remove Mr. Mullens). So Bernie Ecclestone controls two of three Board members.
The banks won a recent court case, affirming that their 75% ownership translates to control. BUT, two weeks later, Ecclestone paid one pound into FOA, which paid for 50% of the voting shares in FOA. So, even though the banks own 75% FOA, Ecclestone has 50% VOTING shares, and retains control.
This is a complex set-up, and I hope people understand this stuff, but it's how Ecclestone has retained control over Formula One commercial rights, and therefore the flow of hundreds of millions of dollars per year. From Formula One, he is one of England's wealthiest people.