FOA profit too late for Kirch

The Kirch owned Formula One Administration (FOA) recorded an eight percent rise in profits, from 114million (pounds sterling) to 128million last year, despite Kirch itself filing for insolvency recently due to owing millions to German banks. The...

The Kirch owned Formula One Administration (FOA) recorded an eight percent rise in profits, from 114million (pounds sterling) to 128million last year, despite Kirch itself filing for insolvency recently due to owing millions to German banks. The profit increase will no doubt raise questions about the way funds generated by F1's commercial income will be organised in the future.

Kirch, who own the commercial rights to F1, could be approached by car manufacturers to buy out its stake in FOA. Manufacturers have recently been voicing the opinion that more money from commercial revenues should be allocated to teams -- however, if a deal can't be struck between the car giants and Kirch, the rival GPWC set up by the manufacturers may well go ahead in 2008.

Bernie Ecclestone still holds 25% of FOA and it's been suggested he may want to buy back the stake he initially sold Kirch. New reports have also surfaced in the British press that three of the banks Kirch owes money to may also bid for the controlling stake, with a view to selling it to the manufacturers in an effort to recoup some of the monies owed by Kirch.

Be part of something big

Write a comment
Show comments
About this article
Series Automotive , Formula 1
Drivers Bernie Ecclestone