The Bernie Model

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FORMULA 1 by Mr Carey as chief executive and eased into an advisory role, although he retains a 2.1 percent stake in F1 and Bambino Holdings, his family trust, has a further 5.4 percent. Leaving 'the Bernie “I don’t think the one-man show for the past five or six years really enabled this sport to grow to its full potential,” said F1’s new boss at the time. Mr Carey has swapped F1’s model' behind headquarters at Princes Gate in Knightsbridge - which sit below Mr Ecclestone’s penthouse - for a small Mayfair office, rented month-to-month. And he has hired AP PHOTO Sean Bratches, a former ESPN executive, to look after commercial operations, and Ross Brawn, a former F1 team manager, to manage the sporting side. The trio are seeking to introduce F1 to new audiences. There is talk of creating digital screening deals, such as packages allowing fans to pay to watch races streamed over the web, expansion into the US and ancillary events around every Grand Prix to make each race the equivalent of a Super Bowl. It will take time to shake off Mr Ecclestone’s legacy. “The short- term challenge is to go from the Bernie model, which has been very successful, into one that is de- pendent not on one extraordinary dealmaker,” says Alejandro Agag, chief executive of Formula E, the electric car racing series. “But the potential is huge.” Mr Ecclestone’s breakthrough came in 1978, when as chief executive of the Formula One Con- structors’ Association he gained the rights to negotiate deals with TV companies on behalf of F1 teams as a package, rather than race by race. Millions of viewers were drawn to a thrilling spectacle, with excit- ing drivers such as James Hunt and Ayrton Senna. Brands were keen to Mercedes driver Valtteri Bottas of Finland steers his car on a wet track during a Formula One pre-season testing session at the Catalunya racetrack in Spain last week sponsor teams. Haphazard organisation was replaced by sleek events. Promoters, By Murad Ahmed, James Fonta- trolling 35 percent stake, had no in- often governments, became des- nella-Khan and David Bond I don’t think the one-man tention of being passive investors, perate to host races in their country. believing more conventional and By last year, broadcasting reve- Chase Carey was walking the show for the past five less combative management was in nues accounted for up to 35 percent halls of London’s Savoy hotel, kill- or six years really enabled order. The sport has suffered from of F1’s annual revenues of more ing time. Next door, at the offices years of waning interest from au- than $1.8 billion. Race promotion of private equity firm CVC Capital this sport to grow to its full diences and sponsors. Some pro- makes up another third, 15 percent Partners, final negotiations were moters are threatening to pull their comes from advertising and spon- taking place on an USD8 billion potential. races from the F1 calendar. Racing sorship, with the rest made up from deal that would present the handle- CHASE CAREY teams are demanding a fairer distri- hospitality, licensing and other bar-moustachioed media executive F1 CHIEF EXECUTIVE bution of revenues after some went sources. with perhaps the biggest challenge bust. Contracts for the sport’s lead- Yet the model is under strain. of his long career. man of Rupert Murdoch’s 21st formed an amateur sport for en- ing broadcasters are up for renewal Since 2008, F1 has lost one-third As Mr Carey waited for news, Century Fox, Mr Carey has plenty thusiasts into a multibillion-dollar this year. Fans and drivers crave of its worldwide audience, around CVC’s Donald Mackenzie reached of experience in sports program- enterprise watched by millions. changes that will restore some of 200 million viewers, according to an agreement to sell its controlling ming. He was involved in the Regardless of the numerous times the sport’s former glory. Formula One Management, which stake in the Formula One motor rac- successful launch of Fox Sports the 86-year-old had sold stakes in Mr Ecclestone played no part in handles TV rights. Mr Ecclestone’s ing group to Liberty Media, the US in 1994 and helped broker a $1.6 F1’s parent company, diluting his the CVC sale process, but his pres- shift away from free-to-air to pay- company controlled by billionaire billion deal between the network own shareholding over time, his ence was a problem once Liberty TV platforms is partly blamed. It John Malone. And with that, Mr and the National Football League. mastery of F1’s business strength- completed the deal. “Successions helped keep broadcast revenues Carey, Mr Malone’s handpicked But he had never been asked to re- ened his hold over the sport. Al- have many perils,” says a person high but has hurt viewing figures - choice, became F1 chairman. Less invent a sport. most every decision needed his ap- close to the process. “The succes- a concern for sponsors. than a fortnight later, on September For the past 40 years, F1 has proval, from sponsorships to which sion of Bernie was always going to A person close to Liberty Media’s 18, 2016, he attended his first ever been run as the personal fiefdom celebrity could gain a VIP pass to be a 100 times harder.” management says F1 previously Grand Prix, in Singapore. of Bernie Ecclestone, a former the pit stops. Four months after the deal was used unreliable audience measure- A former executive vice-chair- second-hand car dealer who trans- But F1’s new owners, with a con- sealed, Mr Ecclestone was replaced ment methods and insisted that any

Syndicated articles from 06.03.2017 F2

Formula 1: Leaving 'the Bernie model' behind

51 of the past 59 Grand Prix races. “I think they are a good group of AP PHOTO people.” Behind the scenes, however, the team owners are preparing for tough negotiations. The Concorde Agreement - which determines how F1 splits revenues with teams - expires in 2020, after which teams could leave and start a breakaway series unless they secure a more even distribution of income. “Ev- erything depends on that negotia- tion,” says one motorsports insider. Few believe that a breakaway is feasible and Liberty wants to re- negotiate the deal far sooner, and find other ways to lock teams in for longer. The US owners have offered teams the chance to buy discounted shares in its new F1 parent company. But one team principal says it is naive to believe that hard-up teams have the cash required to take up the offer. F1 splits revenues based on a number of factors, including racing performance and “heritage”. According to figures obtained by Autosport magazine, Ferrari was paid $192 million in 2016, com- pared with just $47 million for the lowest-earning group, Manor Rac- ing, which has slipped into admin- istration. The richest teams - Mercedes, Red Bull and Ferrari - have dom- inated in recent years by outspend- ing their rivals. For the past three Bernie Ecclestone, former chief executive of the Formula One Group (foreground) seasons, Mercedes teammates Lewis Hamilton and Nico Ros- berg have been left to challenge fall in TV viewers does not equate TV to keep the sponsors happy.” each other for the driver’s title af- to falling interest in the sport. In public, F1 teams are Mr Mosley says the lack of a co- ter speeding away from lacklustre The change of ownership comes declaring their support for herent digital strategy helped ex- competition - which has further as the global media industry pre- plain the sport’s fading appeal. “I dented viewing figures. pares for further consolidation and their new paymasters think it’s one of the reasons why “We’re supportive of cost con- the demand for premium content is there doesn’t seem to be very many trol,” says Zak Brown, one of the set to rise. Mr Carey, who sits on Last year, Sky won exclusive dled together, making it difficult young people watching,” he says. executives in charge of the Mc- the boards of Sky and Fox, may be rights to show F1 in the UK from for Liberty Media to screen races Mr Ecclestone’s singular hold on Laren F1 team. “I would like our well placed to extract maximum 2019-24, in a deal worth about on Formula1.com or create be- F1 helped him to develop ties with income to go up by the pie getting value for his new sport. $250 million a year. But in Germa- spoke streaming deals, according political leaders such as Russia’s bigger. At the same time, I would People close to the new F1 man- ny, a two-year deal shared by RTL to people with knowledge of the president Vladimir Putin. His net- like our expenses to be down. You agement insist it is an “underman- and Sky Deutschland expires at the contracts. working smoothed the expansion can’t do one without the other.” aged” enterprise with plenty of end of this season. Broadcast rights “Bernie was never an internet into new markets - from Bahrain in A budget cap is highly conten- untapped potential. European mar- are also up for grabs in Italy, Spain person,” says Max Mosley, the for- 2004 to Baku, Azerbaijan, last year tious and difficult to police, but kets, which represent 60 percent and France. US rights, currently mer president of motorsport’s gov- - and secured huge “promotion one proposal gaining momentum of its TV audience, will provide a held by NBC, also expire this year. erning body, the FIA. “The general fees” from host cities. Race pro- among the teams is the introduc- quick test of Mr Carey’s dealmak- For years F1’s broadcast and dig- pattern he followed was trying to moters often incur losses for stag- tion of an “advisory spend level”. ing skills. ital media rights have been bun- ensure there was enough free-to-air ing F1 races but make money back If a team wanted to spend more through ticket sales. Critics say Mr than the suggested limit, it would Ecclestone’s expansion damaged need to pay a “rich tax”, which the brand. could go to charitable causes. A tight hold on the data of a trophy asset Organisers in Singapore, Ma- Few major changes are expected laysia and Brazil are considering before the Australian Grand Prix The unconventional auction for Formula One, partnership with US talent agency WME-IMG; Sky; abandoning the sport due to the opens the new season on March 26, which began early last summer, attracted scores of and Qatar Sports Investments, the majority sharehold- prohibitive costs, representing a the first to be staged under Liberty bidders. Among them was Jack Ma’s Alibaba, the er in football club Paris Saint-Germain. threat to F1 finances. Media’s stewardship. Mr Carey will Chinese e-commerce group, which signed a non-dis- Among the approaches rejected was one by Jim Shifting races away from Mr attend but, as a person close to him closure agreement to take a closer look at the group’s Durkin, chief executive of Cenkos Securities, a UK- Ecclestone’s orbit of connections, explains, he is “not a petrolhead”. financials. But, like many potential bidders, Alibaba based brokerage which was attempting to forge a however, may provide an opportu- “Chase Carey has spent his whole walked away once it learnt that it would have had to consortium from interested parties in the City of Lon- nity to reshape the sport. career monetising content and in buy Formula 1 effectively blindfolded. don. The UK bid team would be led by Dean Attew, Liberty wants to focus on “desti- the media,” says Amy Yong, an an- From the outset, all bidders were told by CVC that a former F1 executive and counsellor to Bernie Ec- nation cities” and is eyeing expan- alyst at Macquarie. “It’s an amaz- access to the “black box” - the data containing F1’s clestone, who says the plan was to create a “British sion in the US, where F1 has never ing asset in the hands of someone broadcast contracts and monetary awards for the rac- bid with British money.” After the consortium insisted managed to dent the popularity of who knows how to monetise it.” ing teams - would only be shared at the very end of that Mr Ecclestone would play a continuing manage- Nascar, the rival motor racing se- Mr Ecclestone took four decades the sale process. ment role, CVC did not entertain further discussions. ries. It is looking to establish per- to make F1 a $8 billion business. CVC, the private equity group that owned a con- On September 6, Liberty Media’s representatives haps another two races in the US, Mr Carey will get far less time to trolling stake in F1, feared that the information could entered F1’s headquarters. They were given a single with Miami and Las Vegas tipped prove he can make the sport richer be used to set up a rival racing series. “This made the day to review the black box and warned another buyer as likely venues. still. sale extraordinary,” says a person with close knowl- was lined up should it walk away: Hellman & Fried- In public, F1 teams are declaring edge of the process. “People were buying a trophy man, a US private equity group, and a former major Additional reporting by James their support for their new paymas- Allen asset with very little information.” shareholder in F1. ters. “I’m generally optimistic,” Still, there was plenty of interest. Those on the start- Despite these unusual strictures, Liberty went ahead says Toto Wolff, executive director Copyright The Financial Times ing grid included private equity group Silver Lake in with the deal. of the Mercedes team that has won Limited 2017

mon 06.03.2017 特刊 FEATURE F3 AP PHOTO

South Korean conservative activists burn cutout pictures of N. Korean founder Kim Il Sung (right) and late leader Kim Jong Il during a rally to mark the 3rd anniversary of the sinking of South Korean naval ship “Cheonan”

KIM JONG NAM MURDER For North Korea, that’s the most sensitive of sensitive topics. The North has not acknowle- dged the dead man is the half Damage control North Korea brother of its leader — or men- tioned Kim Jong Nam’s name — in any of its statements. Information about the family style: Deny and attack tree of North Korea’s rulers is tightly controlled and few Nor- th Koreans are aware that Kim By Eric Talmadge th Koreans, including the se- ger to please Japan, the Uni- Kuala Lumpur hospital when Jong Un even had an elder half cond secretary of North Ko- ted States and South Korea in the body was transferred there brother. ACED with the killing rea’s embassy in Kuala Lum- their plot to discredit the Nor- for an autopsy. Soon after Malaysia officially of its leader’s half bro- pur, in connection with the th’s social system. Malaysian officials say that pushed that button, Kang ther in what appears Feb. 13 killing of Kim Jong More recently, it flipped the although the embassy officials Chol, North Korea’s ambassa- to have all the trappin- Nam in an airport lobby. script by claiming South Ko- made no public comments for dor, turned up at the morgue Fgs of a politically motivated North Korea’s ambassador rean agents had tricked a group several days, they privately de- to demand custody of the body. hit, North Korea is turning up in Malaysia has made similar of North Korean waitresses at manded custody of the body He wasn’t allowed in. the volume on a familiar defen- statements to reporters. But a restaurant in China to defect. and strongly objected to an Kang then did what Nor- se: Flatly deny the allegations, the decision to carry the story Obfuscating the South’s claim autopsy. Investigators balked, th Korean diplomats almost viciously attack the accusers. in the North’s highly selecti- that the group defection indi- saying they were following never do — he went straight It’s a position the North has ve official media is significant cated growing dissatisfaction procedure as it was a “sudden to the cameras and gave an been in before, from dismis- because it reflects a level of in the North, Pyongyang accu- and suspicious death.” unexpected press conference, sing U.N. reports outlining hu- concern in Pyongyang over the sed Seoul of violating the wo- accusing Malaysia of “trying man rights abuses or the fin- allegations and its desire to men’s human rights by holding to conceal something” and dings to disputing who threw push harder with the counter- them against their will and is The “colluding with hostile forces.” the first punch in the Korean message of its own. demanding their immediate He also pre-emptively said War. Pyongyang’s fiery and catego- return. investigation the North would “categorically But, while master of the mes- rical denials and counter-alle- Malaysian officials have not into the 2010 reject” any autopsy carried out sage at home, rarely, if ever, gations follow a well-estab- directly accused North Ko- “unilaterally and excluding our has Pyongyang managed to ef- lished pattern: It has taken es- rea of being behind the killing, torpedoing of attendance.” fectively sway world opinion. sentially the same tack in res- and Malaysia is one of the few His scorched-earth approach With evidence emerging that ponse to allegations leveled at countries with close ties to the Cheonan may have backfired. seems to strongly implica- it going all the way back to who the North. But they have ar- Malaysia’s Prime Minister te some kind of North Korea started the 1950-53 Korean rested a North Korean man warship that Najib Razak vowed Tuesday connection to the killing of War (Pyongyang claims it was working at a Malaysian com- left 46 South that his country will not be Kim Jong Un’s estranged half attacked, not the attacker). pany along with three other cowed and is resolute in getting brother Kim Jong Nam, the To this day, it also disputes people and are searching for Koreans dead to the bottom of the killing. North is intensifying its public as biased and politically moti- several more North Koreans. “Malaysia will stand firm,” he attack on the officials in charge vated the findings of an inter- And, not surprisingly, Ma- was dubbed said. “We will be guided by the of the investigation in Malay- national investigation into the laysia has bristled at the Nor- principle of the rule of law.” sia. 2010 torpedoing of the Cheo- th’s attacks on the integrity of an ‘intolerable The North now also faces In its first mention of the case, nan warship that left 46 Sou- its investigation. mockery’ another problem: the South state-run media denied Thurs- th Koreans dead — calling it According to Malaysian offi- Korean military has reportedly day that North Korean agents “fictitious” and an “intolerable cials, North Korean diploma- Three days after the killing, started using loudspeakers to masterminded the killing and mockery.” ts were informed of the death Deputy Prime Minister Ahmad broadcast news of the killing said the Malaysian investiga- A particularly damning U.N.- the day it occurred; it was not Zahid Hamidi, who is in char- across the Demilitarized Zone. tion was full of “holes and con- backed report on human rights made public until a day later. ge of police, confirmed wides- Not many North Koreans will tradictions.” abuses that came out in 2014 The diplomats had been at the pread reports in the media that actually hear those broadcas- The response came a day af- continues to be written off by Putrajaya government hos- the victim was Kim Jong Nam, ts, and many of those who do ter Malaysian police said they Pyongyang as based on the lies pital closest to the airport for though he carried identifica- won’t believe them. were seeking two more Nor- of “human scum” defectors ea- two days before moving to the tion with a different name. But some just might. AP

06.03.2017 mon F4 NATURE 自然

shut out of the new government, an eventuality that’s In the Netherlands, a party for come to pass three times since World War II. That opens the door for new parties. “The Party for the Animals animals is winning voters is an agenda-setting party and not a party that is dri- ven by power or ruling the in an interview last week in country,” Krouwel said. “The her office in The Hague. Dutch aren’t afraid to try so- Wilders’s Freedom Party mething new and give a new BLOOMBERG and Rutte’s Liberals are both party a chance.” expected to take 22 seats in Thieme, the only woman in the election, according to a parliament that’s leading a Feb. 28 EenVandaag poll pu- party going into the elections, blished on Tuesday. The Par- said she’d only be willing to ty for the Animals would get work with groups that ac- seven seats, the most in the cept her organization’s pi- group’s history and up from llars, such as attention to the the two it currently controls. environment and economic After the election, the lower change. Like-minded parties house of the 150-seat Parlia- include the Christian Union, ment may be made up of as the Greens, the Labor Party, many as 14 different parties. the Democrats and, to a lesser And with the four mainstream extent, the Socialists, she said. groups - the Liberals, the “We would expect the new Christian Democrats, the D66 coalition to work seriously party and Labour - expected on climate change,” Thieme, to gain 70 seats in the March 44, said. “We must step away ballot, a theoretical coalition from the focus on economic of those groups would only growth as a solution for all Marianne Thieme need one additional small the problems.” party, such as the Animals, to And while the party, which By Corina Ruhe For a table of the latest Du- te alliance members to reach form a ruling alliance. Thieme helped found in 2002, tch polling intentions, inclu- a 76-seat majority in the Dut- The political system in the places animal rights as one of HE animals are on the ding averages, click here ch lower house of Parliament. Netherlands has a low elec- its central tenets, its interest Tmarch. When traditional The rise in nationalist sen- That’s where Marianne Thie- tion threshold, with about are diverse. The group is also politics fractures, new par- timent, which has bolstered me comes in. 60,000 votes translating into against free-trade deals and ties come to the fore. And in groups such as the U.K. In- Thieme, head of the Party a seat in the legislative body, would like to research ways the Netherlands, the Party for dependence Party and Mari- for the Animals, which su- Andre Krouwel, a professor to get out of the common cur- the Animals is in the running ne Le Pen’s National Front in pports animal welfare and the of political science at Ams- rency. But the organization’s before the March 15 national France, threatens to disrupt environment, said that the terdam’s VU University, said varied interest could aid the election. the conventional order in the traditional parties will have in a telephone interview. If coalition-building process, While Geert Wilders’s Free- Netherlands, one of the core to court a smaller faction like the Dutch system required a she said. dom Party and Prime Minis- founding members of the Eu- hers to make the electoral threshold similar to that in “As we’ve seen in the past, ter Mark Rutte’s Liberals fight ropean Union. A new gover- math work in putting a gover- other countries, “five out of small political parties can be it out for first place, the need ning coalition that success- nment in place. “And that’s a the current 11 parties wou- the hinge point in the forma- for coalition partners means fully excludes the anti-Islam, very comfortable position be- ldn’t even be in parliament tion,” Thieme said last week the Animal party could play anti-immigration Freedom cause we can stay committed now,” he said. in an interview on national a role in creating a working Party - as the mainstream to our ideals and from that Given the vagaries of the broadcaster NOS. “And if we majority needed to form a go- groups have promised --could perspective we will look at the process, that means the big- were asked, we would come vernment. require as many as six separa- propositions made,” she said gest political group could be and negotiate.” Bloomberg

ASK THE VET by Dr Ruan Du Toit Bester 6 Signs of Ringworm in dogs

ingworm in dogs is a type of skin infection Six signs of ringworm Rthat can be transmitted to other dogs and • The signs of ringworm infections are fairly si- humans by direct contact with infected animals. milar across most cases. While visual inspec- We call this a Zoonotic disease. Ask most dog tion and identification can be fairly certain, owners and they either know about or have expe- it is best to confirm your suspicions through rienced ringworm on their own pet. The identifi- testing. Common signs are: cation and treatment of this skin infection is fairly • A hairless,small, round lesion has formed on straightforward. the dog. dium specifically identified for ringworm. Your While the frequency of ringworm infections is • The skin in the center of the lesion has become Vet will do this for you. Once completed, the cul- very low, it can be spread very easily if not con- Ringworm is a fungus scaly. ture can be examined under a microscope and trolled. That’s why it’s a good idea for dog owners Contrary to what its name suggests, ringworm is • Small pustules form on the surface of the sore. the diagnosis confirmed. to know how to recognise the signs and when to a fungus, not a worm. The fungus is most pre- • The lesion may start out small, but can conti- Sometimes treatment is not required if the dog seek assistance in treating the infection. valent in hot, humid climates like Macau and is nue to grow. or puppy is healthy and if the lesion is small and most frequently diagnosed during the fall and • The sore may or may not be itchy. is isolated to just one lesion. In these cases the Hope this info helps winter months. While the fungi are primarily • Lesions are most common on the head, but sore will heal in about fourweeks. If treatment is Till next week one of 3 varieties, there are several fungal va- may also form on the legs, tail and feet. indicated, the infection can be treated twice a day Dr Ruan rieties that can cause ringworm. The spores are with a topical antifungal medication. Another typically found in the dog’s bedding and can be Diagnosis and treatment treatment option is the use of an oral antifungal, Ask the Vet: shed into the environment for up to 18 months. While there are several methods of diagnosing a but this treatment must be done under close su- Royal Veterinary Centre While most dog owners know about ringworm, ringworm infection, the most accurate method is pervision by a veterinarian because oral antifun- Tel: +853 28501099, +853 28523678 the actual incident rate is about 8 percent of all to collect scales and crust from the dog’s skin and gals must be administered over several months Emergency: +853 62662268 skin problem cases. coat and create a culture using the culture me- and can reach a toxic level. Email: [email protected]