Liberty Media: Teams did not buy our stocks

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Formula 1 teams were not receptive about an option given to them from Liberty Media to buy a certain amount of stocks, but Carey confirms to be happy about the result obtained so far.

Before Singapore GP 2016, Toto Wolff, Christian Horner and Moniha Kaltenborn, team principals of Mercedes, Red Bull Racing team and Sauber, they were open about a potential buy of some stocks related with Formula 1 circus corporation by their teams. This was an idea given from Liberty corporation after the buy-out of the Circus. Sergio Marchionne was very clear and during a press conference, he declared it would have been a bad idea to make such an investment without a reasonable picture of what is going to happen after 2020 when a new agreement will be done among teams and Liberty Media. He was talking about a fear that Liberty Media can change the pie given to them from old Ecclestone’s agreement: it is an amount of 1 trillion euro each year, given to the F1 teams until 2020.

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What it looks like, it is clear this idea was not really loved by Formula 1 teams. Liberty Media communicated the date to buy 19 million stocks of Formula 1 Common Stock (FWONA), it is expired and teams can not buy a stock at 21,26 $ anymore. It is true, Liberty Media gave an opportunity in the future to allow investors to join them. Moustached Chase Carey gave a diplomatic statement where his opinion about this subject is clear:

We were involved with every single team to create a common point of view about this motor-sport, so to create a real value to share with our stock holders. Our windows of opportunity was pretty clear, we are happy about the result we got and we had some interesting discussions with our teams. They asked another bit of time so there is no problem. We liked the interest given about our ideas, to improve this motor-sport in the future”

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Meanwhile, traditional motor-sport is collapsing under the attack of an electrical future. Another car manufacturer is leaving Lmp1 project in WEC competition, to join the Formula E. Porsche decided to join this different kind of show, soundless without any smell and barely capable to attract any public. Before it has been Audi to take this action. Six months ago, they told about their intention to leave WEC competition to focus only about Formula E. Next one was Mercedes that in the middle of July, by surprise, they left DTM (Championship where they are the organizing committee) to move into Formula E. Now it is the time of Porsche, another car making of VW galaxy. They are leaving WEC and the 24 hours of Le Mans, too. They will focus only to Formula E championship. If you keep in mind, Jaguar left one year ago, you can understand this is a migration wanted by someone in position of power. Even more, Renault is in Formula E from the very beginning of this championship: the year 2014.

Traditional motor-sport is collapsing: WEC competition is actually dead because there are not any big car manufacturer anymore. Right now, there is only Toyota left, but it is strange to think they would like to race alone against small car makers, because they are those one which created this hybrid technology long time ago. Pegeout declared they will not compete at 24 hours of Le mans before 2020…

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Formula E is eating any other competition while persuading other car manufacturers to come in and join this competition. We think the real plan is to merge Formula 1 and Formula E together under the fake pretext of environmentalism pretty soon. Whatever is the future, keep in mind without Audi and Porsche, any competition is dead and this is the reason WEC is virtually over. It will be a niche championship, enjoyed by real lovers like in mid ’90s when there was the BPR championship: a competition done by small teams and private pilots with few supporters or media attention. Perhaps, we will face a future where almost nobody will talk about 24 hours of Le Mans or WEC outside their own country. Car makers did not only give a state of the art car but also a huge amount of money to communicate to this world their presence while newspapers and TV channels talk about them. When there is not Audi, Porsche and it might be Toyota in the future, nobody will like to select Eurosport channel after 2019 to watch a 24 hours of Le Mans to support Oreca, Alpine, G-Drive or SMP…

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What is the reason car makers are leaving the WEC or DTM championship ?

Main reason is that a championship in WEC and a race at 24 hours of Le Mans can cost 200 million euro. A competitive team in F1 like Ferrari and Mercedes pay the double to compete but small teams like Toro Rosso and Sauber pay much less than a normal team competing in WEC championship. A real advantage to compete in F1 is about the reward given by TV copyright estimated around 100 to 150 million euro to those teams finishing a season in the first four positions. This amount of money is reduced to 60 million euro if a team finish a season in the next six positions. This good spoil together with a good sponsor can allow a team to make money from F1. A WEC competition is a cost and sometimes a loss. Car makers were competing there to advertise their technology but when there is a less expensive technology like Formula E, pushed by FIA there is no doubt anymore: they simply migrate! In fact, Formula E is cheaper: same cars, reduction of cost and a budget of 20 million euro is more than enough to be competitive. Audi and Porsche will pay one tenth of what they were used to pay when racing in WEC championship. At the same time, they will be clean from an environmental point of view only because they race in the cities and they will be accepted by the politically correct elite. This is the real reason of this migration: they are forced to do it. They will recycle their picture, only because they are using something believed clean instead of a thermal engine!

In reality, there are some huge defects in this technology: an electric car is believed to be clean but it is not really true. Formula E is not polluting only when racing but even when they are parked because their batteries are very difficult to recycle. Immagine if half of the cars worldwide would be electric, the amount of batteries to recycle would be incredible. At the same time, a huge amount of electrical energy would be required and to produce it, we can not use solar panels or electrical windmills because they can not satisfy such a request. Nobody tell you about the manufacture process of a battery. This process is in reality quite polluting because to get lithium (a very rare mineral) to create an energy accumulator, there is a severe damage to the environment. Right now, this is not a clean energy. A real clean energy is the fuel cell technology created by hydrogen cells. This technology is capable to create only water from exhaust pipes. So far, it is not pushed forward because with a right knowledge, it is possible to generate hydrogen at your home and for free by yourself… But this a different story!

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Another big defect of Formula E is that is not a real motor-sport. At least from a point of view of F1 supporters. There is no sound, there is no speed. If you have not watched live a race of Formula E, we would like to say: you did not miss anything at all. They have no power, there is not a real sound and after 20 laps, pilots must go to box to change their car because their battery can not last until the end. There is not any scaring feeling or danger because they are really slow! Formula E is missing all those things making a motor-sport interesting: sound, speed, danger, emotions, difficulty to drive a car at high speed… Any car is like the other ones, you can leave a team to join another one but there is not any difference at all. Those loving Formula E are engineers but those cars are not magnetic to any public because there is not any speed at all. Those cars go against any rule so far considered important: power/weight ratio! If you do not know what we are talking about, this is an important subject to get a good performance when racing. Those monster cars racing in WEC, they got 900 horse power and their weight is 900 kg but a F1 got 1000 horse power and their weight is 600 kg. Formula E got 270 horse power and their weight is 800 kg. Do your math to see what is the best power/weight ratio…

This is the reason, those used to listen a F1 of ’70s, ’80s, ’90s coming at full power with a loudly engine, they can not be interested to watch a Formula E race. Anyone listening a F1 engine for their first time can never forget the pain in their ears or the fear watching such a car coming to turn at a scaring speed while a Formula E goes at one third of that amount. It is possible, we will watch a thermal car like a car of Fangio competing in 1955 inside a museum, but this electrical future looks quite tasteless…

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