Site logo

Ferrari gets shares in F1

NEWS STORY
15/09/2014

We all know that Ferrari's influence in Formula One stretches far and wide but the true extent of it has not come to light until now. The Scuderia has become the first ever team to own a stake in F1 as it has been handed options on a 0.25% stake in the sport worth an estimated 15m according to an article in the Daily Telegraph by Christian Sylt.

It adds to Ferrari's suite of F1 benefits which, as Pitpass has revealed includes a veto over the regulations and even a veto over the successor to the sport's boss Bernie Ecclestone. Of course it also gets a minimum of 60m in prize money every year too.

The share options in F1 were previously held by Ferrari's chairman Luca di Montezemolo, who resigned last week, and a source close to the Italian marque says "Ferrari, not Mr Montezemolo, is entitled to exercise/receive the rights."

In 2012 Montezemolo became a non-executive director of F1's parent company Delta Topco as part of its preparations for a flotation on the Singapore Stock Exchange. He was appointed as Ferrari's representative on the board (not in a personal capacity as inaccurately reported elsewhere) in recognition of the fact that it has been racing in F1 since 1950, which is longer than any other team. In addition, the F1 flotation prospectus revealed that Montezemolo would be awarded an option on a 0.25% stake in Delta Topco so long as he remains a Ferrari director.

It states that "the Company has agreed to grant Luca di Montezemolo... Options over Securities representing 0.25% of the total number of issued Securities in the capital of the Company immediately following the Global Offering... provided that he is the Team Director appointed by the current Longest Standing Team on that date."

F1 was due to float on the Singapore Stock Exchange in 2012 and was expected to have a market capitalisation of 6bn which puts a 15m value on Ferrari's options. CVC, the private equity firm which controls F1, put the brakes on the float due to the Eurozone financial crisis and bribery allegations against Ecclestone which were settled last month.

The settlement cleared the way for CVC to sell down its 35% stake or revive plans for the flotation. It would put Ferrari on track for a windfall from its share options and the source stresses that "these rights are for Ferrari, and once again not ad personam for Mr Montezemolo."

The team has won a total of 16 F1 championships but its performance has stalled in recent years. It hasn't won the F1 title since 2008 and could only manage a disappointing ninth in the recent Italian Grand Prix. After the race Sergio Marchionne, CEO of Fiat Chrysler which owns a 90% stake in Ferrari, admitted to "misunderstandings" with Montezemolo over how to improve Ferrari's F1 performance.

Signalling Montezemolo's imminent departure, he said "nobody is indispensable" and added that in F1 Ferrari "have been struggling for six years." Forty-eight hours later, Montezemolo's race was over.

Ferrari's new representative on the board of Delta Topco is expected to be either Marchionne or its F1 team principal Marco Mattiacci. It is rumoured that Montezemolo's next move will be to take over as boss of Alitalia. So even though he won't remain on the board of F1 it isn't likely that he will be twiddling his thumbs.

LATEST NEWS

more news >

RELATED ARTICLES

LATEST IMAGES

galleries >

  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images

POST A COMMENT

or Register for a Pitpass ID to have your say

Please note that all posts are reactively moderated and must adhere to the site's posting rules and etiquette.

Post your comment

READERS COMMENTS

 

1. Posted by infinity2014, 19/09/2014 15:43 (moderated by an Adminstrator, 19/09/2014 15:47)

"This comment was removed by an administrator as it was judged to have broken the site's posting rules and etiquette."

Rating: Neutral (0)

2. Posted by Paul C, 17/09/2014 1:31

"Successful or not, Ferrari is F1 to millions of tifosi and other auto racing fans. Ferrari is the only original F1 team still in operation. "

Rating: Neutral (0)     Rate comment: Positive | NegativeReport this comment

3. Posted by Indy2003, 16/09/2014 14:50

"Right on the mark JClark and bfaireyI was wondering the same thing WTH?
As for ClarkwasGod it's time to stop supporting what is just one of many root problems (Lucy) in F-1 and begin by being part of the solution. Let me guess you are a Ferrari guy with red logo shoes too."

Rating: Neutral (0)     Rate comment: Positive | NegativeReport this comment

4. Posted by Simon in Adelaide, 16/09/2014 10:35

"That's 'special' as in Bernie not wanting to 'sleep with the fish' :)"

Rating: Neutral (0)     Rate comment: Positive | NegativeReport this comment

5. Posted by bfairey, 16/09/2014 6:38 (moderated by an Adminstrator, 19/09/2014 15:47)

"OK explain their "special status"?"

Rating: Neutral (0)     Rate comment: Positive | NegativeReport this comment

6. Posted by JClark-Monza1967, 15/09/2014 23:07

"Perhaps I'm a bit naive or uninformed but doesn't this put Ferrari in a privileged position or present a confict of interest, even beyond what they already enjoy? Could any of the F1 teams or their parent companies buy shares in FOM, Delta Topco, CVC, etc?"

Rating: Neutral (0)     Rate comment: Positive | NegativeReport this comment

7. Posted by ClarkwasGod, 15/09/2014 16:01 (moderated by an Adminstrator, 19/09/2014 15:47)

"Hopefully, Ecclestone will find a way to keep him on the F1 board - his experience is too valuable to lose - especially if a "bean counter" is installed in his place for Ferrari.

The prize money afforded to them is an historical sum due to their special status in the sport. "

Rating: Neutral (0)     Rate comment: Positive | NegativeReport this comment

8. Posted by bfairey, 15/09/2014 11:34

"What do you mean they, Ferrari, gets L60 million in prize money each year? and pray what do they do for that?"

Rating: Neutral (0)     Rate comment: Positive | NegativeReport this comment

Share this page

X

Copyright © Pitpass 2002 - 2022. All rights reserved.

about us  |  advertise  |  contact  |  privacy & security  |  rss  |  terms