A note in the Bear’s inbox this morning was titled, “Murphy got scooped.”
A little background. On Friday, the Bear got a call from a trusted source, the gist of which was that “Bernie is out.” The email came from someone who knew Murphy was “sitting on it.”
CVC Capital Partners, which owns 70% of Formula One Group, the collection of companies through which Bernie Ecclestone “controls” F1 commercial rights, was said to have told the Supremo he would have to relinquish his management duties. A new concorde will be signed Wednesday next and made public the following week. The on-again, off-again departure of Max Mosley is “on.” Again.
In order not to compromise his source, the Bear agreed to hold the story, “probably until next Wednesday,” though he pressed for, and was promised, an earlier release if circumstances warranted. Unfortunately, by the time they “warranted” it was too late to be a “proper Murphy item” (a rumor).
Following on the heels of last week’s interview with the ALMS’ own “supremo,” the Bear naturally got to thinking about his place in the universe of motor sports coverage. Consider this:
About the “Bernie story,” Murphy would have written the following (as part of a longer piece, a revised and updated version of which can be read at The Last Turn Clubhouse).
CVC has finally moved to protect its interests, the Bear’s been told. Mr. Ecclestone’s personal management of the F1 business will no longer be required after some future date. Among concerns were (finally and obviously) that Bernie’s interests had too closely become aligned with Max Mosley and the FIA and too little with the sport’s teams, to the potential detriment of the financial interests of CVC.
The Bear also heard Max will now honor his previous “promise” (that word remains in dispute) not to stand for re-election in the fall. Observers suggest Ari Vatanen will be elected FIA’s new president.
Unless something else happens, of course.
Some information about the meeting and participants was left out – routine for the Bear, who, if nothing else, will do all he can to protect a source. Not unexpectedly – to Murphy anyway, who’s been around the block many times on these things – the Sunday Telegraph published a similar story (as news, not rumor) on July 12:
Worried by the chaos swirling around the sport – which has seen eight rebel teams, including Ferrari and McLaren, threaten to form their own breakaway series – board members including Sir Martin Sorrell, chief executive of WPP, and Peter Brabeck, a high-powered figure at Nestle, met in London on Tuesday to decide on a plan of action.
Sources close to CVC say that in the meeting it was proposed that Ecclestone, the chief executive of Formula One Management, should be ‘moved upstairs’ and given an honorary role within Formula One’s holding company, in recognition of his contribution to the sport. Ecclestone declined to speak to this newspaper last night.
Right on cue, (as is its recent role) SPEEDtv.com published denials from Bernie and CVC chief Donald MacKensie the next day (Monday):
The boss of F1′s commercial rights owners CVC has denied reports the company is considering ousting Bernie Ecclestone as chief executive…
…To the Daily Telegraph, Ecclestone also denied the rumors, insisting they must have originated “from a malicious source”. Instead, Ecclestone insists the sport’s long-running political feud is nearing its end — probably on Wednesday, when all parties are hoping to sign a Concorde Agreement.
“I’m sure then he (Max Mosley) will take his holiday and not stand for re-election. He would have no reason to stay,” said the Briton.
After being taken to task (“unprofessional rumors,” an oxymoron if any is) for reporting a source’s description of talks between the American Le Mans Series and “Grand Am” (whether as NASCAR, ISC, the DP series itself, or some other proxy), is Murphy supposed to be contrite? He is not.
At Braselton’s request, the Bear dutifully published its denial. Asked for the chance to correct ‘erroneous reports such as the recent column,’ Murphy demurred. At what point – and why – does a rumor become an ‘erroneous report?’ Simply when – and because – it’s denied by a principal? That isn’t the standard of the Telegraph (certainly not one of Britain’s infamous tabloids), is it? They let SPEEDtv play the denial as ‘the truth,’ just as did Murphy.
Did the Bear “get scooped?”
He’s not so sure. The Telegraph article is about a meeting in London on Tuesday. Murphy was told about a subsequent meeting elsewhere. SPEEDtv.com said the Tuesday meeting “did not take place as reported.” The Telegraph reported that Bernie would be “kicked upstairs.” SPEEDtv.com quoted CVC managing partner Donald MacKenzie that the 78-year-old Ecclestone would remain “chief executive,” and the “his position is (not) in doubt.” Murphy heard his “management duties” would be “relinquished.” Semantics? Perhaps (Just as “there are no talks,” differs from “there have been no talks.”) But contrary to the occasional assertion of the unlettered, semantics are important.
Murphy is not convinced, with literally billions at risk, and its manager showing little indication of acting effectively in its behalf (if the so-called breakaway occurs, it can kiss much of that revenue stream goodbye) that CVC Capital Partners can afford to play a passive role. Not when its manager, while praising Adolph Hitler’s management ability, closely aligns himself with another clown who plays Nazi-themed sex games in his spare time. Not when that alliance threatens its investment. To allow this “circus” to continue would be the very definition of a failure to exercise fiduciary responsibility.
Speculation
Whatever meetings have occurred or not occurred, whatever has been decided or not decided, the Bear predicts that some cover will be found to put the “control” of F1′s commercial rights in other hands before this year is out. In short, if CVC Capital Partners didn’t decide to dump Bernie last week, they damn well should have.
Notes
A Florida GT2 team appeared likely to miss its scheduled departure for Lime Rock tonight.
Follow Murphy on Twitter at http://twitter.com/Murphythebear
Tags: Bernie Ecclestone, CVC Capital Partners, Donald MacKensie, F1, Formula One Group