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F1 Ownership structure explained and the net worth of the owner in 2023

F1 Ownership structure explained and the net worth of the owner in 2023

Here is all you need to know about the owner of the racing series called Formula 1 and what is the F1 ownership structure

Who is powering the second-most watched sport in the world and a multimillion dollar industry? Have a look at the ownership and the owners of the Formula 1.

F1 Ownership structure explained and the net worth of the formula one owner in 2023

Liberty Media Corporation, a major American media company, is the owner of the Formula One racing series.

The founder and chairman of Liberty Media, John C. Malone, is an enterprising businessman with extensive experience in the media sector. John C. Malone is referred to as the “Cable Cowboy” frequently.

Greg Maffei serves as the CEO and president of Liberty Media Corp. The business has experienced tremendous success under Maffei and Malone’s leadership as it has expanded into new markets and purchased several significant properties.

The three divisions of Liberty are a reflection of the ownership of controlling interests in several companies. The Braves franchise (which includes the Atlanta Braves MBL team), the SiriusXM Group (centred on radio broadcasting, ticket promotion and sales), and the Formula One Group are among these divisions.

How much did it cost to own Formula 1?

At a total cost of $4.6 billion, Liberty purchased the Formula One Group from Delta Topco (formerly owned by CVC Capital Partners) in January 2017.

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This cost contrasts with the initially anticipated franchise accession cost, which was widely disputed to be around $8 billion, although this figure reflects the enterprise value.

The phrase “enterprise value” basically refers to the value of a firm, and it is derived by adding the market capitalization and debt of the company and deducting the cash on hand.

This formula presupposes that a amassing corporation receives the value, assets, and debt of its target.

How did Liberty Media Corporation (LMC) own Formula 1?

F1 was purchased by Liberty Media Corporation (LMC) by paying off its market value. Except that it only bothers estimating the total value of ordinary shares, market capitalization and equity value can practically be interchanged.

When the purchase was finalised, Delta Topco’s Formula One had a market valuation of $4.6 billion.

However, Liberty Media only spent $301 million of their cash on the acquisition and the remaining amount was covered by debt, a share offering, and exchangeable debt.

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Liberty Media took almost three years to decide whether or not to purchase Formula One.

Summary of the different sources of financing LMC prepared:

  • LMC borrowed $445 million using the shares of Time Warner as collateral.
  • LMC borrowed $350 million using the shares of Live Nation as security.
  • Another $400 million in debt was successfully acquired by LMC.
  • Seven investment funds contributed $1.55 billion (62 million shares at $25) to LMC’s F1 tracking stock.
  • LMC’s cash reserves are $301 million.
  • The sum of $3.05 billion was paid to the sellers using the aforementioned sources of funding.
  • In terms of equity, LMC granted the sellers 56 million shares of its $1.2 billion F1 tracking stock.
  • Finally, LMC also provided the sellers with exchangeable loan notes for $351 million (exchangeable to the F1 tracking stock).

The estimated net worth of Liberty Media Corp is at least $25,332 Million dollars as of 2023-01-23 and it is the 10% Owner of Sirius XM Holdings Inc and owns about 1,999,291,236 shares of Sirius XM Holdings Inc (SIRI) stock worth over $11,676 Million.

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