FIA poised to veto Kirch, EMTV F1 buy-in?

EMTV yesterday (Wednesday) exercised its option to buy a further 25 per cent of SLEC, the trust owned by F1 supremo Bernie Ecclestone's family, bringing the stake owned by the pair of media conglomerates to a majority 75 per cent. But trouble may be brewing on two fronts.

Firstly, EMTV and Kirch have just 30 days to put in place the finance, estimated at almost US$1 billion, needed to secure the option. If they do not, EMTV could face a compensation suit from SLEC.

But the confidence of potential financers of the deal may be severely undermined by murmurings from the five F1 manufacturers who had hoped to secure their own stake in SLEC that they will reconsider their position in the sport if Kirch opts for a pay-per-view route for F1.

Secondly, even if the finance is secured, the FIA is now said to be almost certain of using its veto, which it claims to be able to exercise if it regards a deal as not being in the best interests of F1. The veto may not just halt the sale of the extra 25 per cent, but could be used to cancel SLEC's rights to F1 with immediate effect - making everything EMTV and Kirch have bought, plus Ecclestone's remaining stake, virtually worthless.

According to today's Financial Times, the FIA has 60 days to exercise its veto and is likely to recommend the cancellation of SLEC's rights at its March 22 General Assembly. Should this be the case, the motor manufacturers will have an ideal opportunity to become involved in the commercial side of F1.

With EMTV and Kirch certain to legally challenge any veto, the situation is unlikely to reach a swift resolution.