Formula One and Ecclestone: The Powershift?



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Code : LDS0005

Year :
2004

Industry :Automobiles

Region : Global

Teaching Note: Not Available

Structured Assignment : Not Available

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Abstract: Since its inception in the 1950s, Formula One is called the soap opera of the sports world; the exotic locations, huge amounts of money, and famous faces made it unique compared to most other world sports. In the late 1960s, Bernard Charles Ecclestone, a used-car dealer sensed a great opportunity to make money by getting involved in the administration of Formula One. Gradually, in the early 1980s, he began acquiring control of the racing series' broadcasting and merchandising rights, which resulted in huge profits for him. In due course, Ecclestone emerged as the most important person in Formula One racing, as he owned major stakes in some key subsidiaries of Formula One. However, the car manufacturers such as Fiat, Mercedes and BMW, who financed Formula One teams, felt that Ecclestone diverted too much revenue to his own holdings while Formula One's popularity was declining. Consequently the carmakers decided to abandon the Formula One series and planned to start a new auto-racing series.

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Pedagogical Objectives:

  • To discuss the financial dominance of Bernard Charles Ecclestone in Formula One, the initiatives taken by car manufacturers to start a rival auto-racing series and the threat to Ecclestone's dominance.

    Keywords : Formula One; Bernard Charles Ecclestone; Formula One Constructors Association; Federation Internationale de L'automobile; Max Rufus Mosley; Commission Sportive Internationale; Allsopp, Parker & Marsh; Managing in Troubled Times Case Study; Commercial rights; TV rights; Broadcasting rights; Formula One Management Limited; Concorde agreement; Formula One promotions and administration; SLEC (SLavica ECclestone); Grand Prix World Championship

    Contents :
    » Bernard Ecclestone – Building The Empire
    » Formula One – The Financial Dominance
    » The Big Plans


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