Qatar’s investment into the world of sport may soon include Formula One.
Qatar Sports Investments, owner of the Paris Saint Germain (PSG) football team, and the New York-based RSE Ventures, owner of the Miami Dolphins of the NFL have teamed up to buy a controlling stake in the sport from the private equity fund CVC Capital Partners, according to reports from the Financial Times and Reuters.
CVC is the largest shareholder in Formula One with a 35.5 per cent interest managed by the veteran motor sport magnate Bernie Ecclestone.
The UK newspaper, quoting sources close to the negotiations, said the deal could be worth US$7 billion to $8bn with a view to building the sport’s presence in the United States.
CVC has come close to floating its stake twice in the past three years with a target valuation of more than $10bn, however those plans stalled.
Qatar Sports Investments did not reply to emails asking for clarification on the negotiations. A CVC spokesman said he had no comment.
Qatar has recently talked of hosting a grand prix on a new street circuit in the city of Lusail. It could thus become the third Middle East country to hold an F1 event after Bahrain and the UAE.
It is believed Bahrain has a veto on whether another Arabian Gulf neighbour should host a grand prix and is not keen on the idea.
Yas Marina Circuit, which hosts the Abu Dhabi Grand Prix, did not wish to comment on the implications of a change in ownership.
Qatar has been building its sporting profile after winning in 2010 the right to host the Fifa World Cup, and buying PSG in 2012. But it has been dogged by allegations of impropriety in its winning bid for the 2022 World Cup with investigations continuing, and the threat of a fresh vote should the bidding process be proven to have been rigged.
Formula One is also undergoing a change of fortune with viewing figures in some regions falling, overly complex rules and regulations, a virtual monopoly on the leader board between the richest teams and some less well bankrolled teams facing administration and closure.
The US could provide a welcome market for the high-octane sport. F1 currently only has one race in the US on its calendar in Austin, Texas.
With RSE Ventures, a business that is already entrenched in US sports franchises, behind the negotiations it could be easier to sell the sport to a public that is largely ignorant of its attractions.
CVC and the potential bidding consortium have appointed investment banks to advise on a deal, suggesting that talks could be at an advanced stage, according to Reuters.
ascott@thenational.ae
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