Formula One Management

Formula One Management, or FOM, is a corporate entity dealing with media relations and financial matters regarding Formula One. FOM is a subsidiary of Formula One Holdings and ultimately SLEC Holdings, (see table).

Control

By the end of 2000 the Ecclestone Family stake in Formula One Holdings was reduced to 25% stake. Bernie Ecclestone, however, would still retain firm control of FOM.

Related Topics:
2000 - Formula One Holdings

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Three banks currently own 75% SLEC Holdings, which nominally controls Formula One Holdings and hence FOM. The banks' shareholdings are a legacy of the collapse of the Kirch Media company. Kirch spent heavily on both Formula One and World Cup rights with the aim of generating a large income stream, however the expenditure lead to bankruptcy. The banks, acting as creditors, took control of Kirch's share of SLEC Holdings as a way of recouping some of the money that was owed to them. However this control has not been translated into a similar control of Formula One Holdings or its operating companies; in particular Formula One Management, which is responsible for the day to day running of the commercial side of Formula One.

Related Topics:
SLEC Holdings - Kirch

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Due to the lack of control the shareholdings gave the three banks they (as Speed Investments) brought a case in the High Court of of England and Wales in which FOH was named as the defendant. The case will be heard in London's High Court 59 to determine whether Bernie Ecclestone maintains control of F1 and its hundreds of millions of dollars in annual revenues for well over 20 years. If the outcome is unfavourable to Ecclestone, his management status will steadily be relinquished to the trio of banks and a group of carmakers dissatisfied with his methods of management. There is even a possibility of F1 splitting into two rival championships. A possible replacement for Ecclestone as acting president of FOM mentioned is Marco Piccinini.

Related Topics:
High Court - Marco Piccinini

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