This article is based on the book, Bernie Ecclestone: King of Sport by Terry Lovell and is not an excerpt.
The 1930 Great Depression of England had one young entrepreneur hone his natural business acumen and emerge into the future to be proclaimed as the "Emperor of F1."
Bernie Ecclestone and his rise to power is no figment of someone's imagination. The man is not a myth modeled on some glorious historical figure. Nor is he some technical wizard or intellectual.
A 1951 accident put paid to his on-track exploits but off track he continued to make his mark in the sport to finally climb all over a sport that had poor management until then.
What was he willing to do that other managers or team bosses before his reign did not want to do? What was it that made this man what he is? Who is he? Why is he so all powerful?
Well, it is not hard to guess.
Anyone who deals in Real Estate or Loan Financing would tell you that Bernie Ecclestone is a good negotiator and a good property dealer. Also, none could get away without paying back the loans.
Real Estate was his golden path that made him millions. He saw that Grand Prix racing is where the money is. His chums were all these rich guys who just wanted to shell out huge sums to race but hated sitting across the board from each other. There was no uniformity and it was not such a matter of prestige to be a part of the GP circus year after year until then, so a few teams used to take time out most often.
Bernie worked out the math, learnt that these rich guys who are all loving the GP scene had some communication gaps and lacked organizational setup, got into the act.
Bernie Ecclestone became the operations head (ops head) for the sport that was Grand Prix racing and that is Formula One. The team bosses who all had massive egos came to realize that this diminutive man could in fact get them all to compete on the same canvas.
- B/R Ticket Guide
Bernie ensured (with the help of some like Enzo, etc,) to bring about quality and quantity into the sport. But this article is certainly not a subtext to his exploits in Formula One. It is more of an analysis into "Who is Bernie Ecclestone?"
Who is Bernie Eccelestone?
This is not a trivia question. All of us know what is happening in the world of finance, but few of us realize that this is more a problem of men (genderless) rather than money.
Men who are willing to compromise all that they value just to make a fast buck. Men who are willing to live on OPM (Other People's Money). Men who are willing to deprive themselves nothing while bloating up their balance sheets. Men such as the famed Enron example, Ken Lay. Men without principles, and ethics, men whose integrity is at stake. Why am I saying this? Here are my reasons: when Citibank fell—none of the top executives got roasted, it is only the small fry that got burnt and snivelled. When Lehman died—none of the top executives got fried, it is only the small investors that got carted off to Barclay land.
Some people fail to register in their minds the fact that the Governments in their bailout plans are paying two-thirds more for the same stock that they can get for two-thirds less on the stock exchange. And all these bailouts are going to end up as tax dollars on people's payslips soon. So, "bailing out whom?" is a very pertinent question. A few days after/a little before Lehman fell, their top executives went on a holiday somewhere, don't believe me—scan your news radar in the mainstream media (MSM).
So, why am I bringing up all this in a discussion on Bernie Eccelstone. CVC Capital Partners is an offshoot of Citibank.
Bernie has made millions selling his stake through his shell companies. Did he put F1 into the hands of yet another bailout candidate?
Is he going to be another Ken Lay?
Not so!
Bernie loves the sport or so some think. Is that true? Let's go with the opinion that Bernie Ecclestone loves F1 and that he will do anything to keep it alive in his lifetime.
Here are a couple of questions that will help us understand if he loves the sport or not:
Q—Did he for instance give anything back to the sport?
A—Yes, he made it one of the most premier and premium sports in the world. He brought in sponsorship, better organization, better tracks and a cohesion between the teams
Q—Did he for just a second try to get in more money into F1?
A—Yes, not only did he profit (is it grubby profiting?) but he also brought in more hedge funds, investment banks etc., into the loop.
Two aspects that prove to us that he in all likelihood loves the sport. Will he see the sport die before his time? No! He has too much at stake apart from money. Money is not everything sometimes—it is reputation, power, a desire to leave their mark on the sport long after they are gone from the face of this earth to remain in people's memories as the saviour of the sport. Bernie Ecclestone would want all that and more.
Bernie would want to be remembered for being the man who elevated the sport to an international level. He would like to be remembered for taking the sport out of its European setting and making it more reachable for peoples across all walks of life and all crazy parts of the continents. He wants to be remembered for making F1 a common sport and not an elite sport. He wants to be credited for making F1 not just the fancy of some rich playboys but of a plebeian/commoner too.
Should we hate the man for wanting to remain in the annals of history as the man who made F1 more universally acceptable and permeable?
Disclaimer: This article is based on personal observations and opinions and is not a statement of fact.
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about 1 month ago
Interesting, and good to see you back. After being harsh to BE I was going to write a piece looking at his positive contribution, but you've covered it now.
from about 1 month ago
Hey mate, thanks for the kind words, but no! I think you gotta do a piece and give your take on BE cause methinks I did not cover all the bases, please do...thanks for vote mate
about 1 month ago
As a Business student, I Love this piece Sara. Great to see you back.
Bernie has given the sport so much, including the conceptual idea, I'm not his greatest fan, but I admire his business acumen. He knows how business works and how to get what he wants, which is great. I just feel he is getting a little big, and thinks (im not saying he doesn't) he always knows best.
Nice one, my Pick for the pure idea behind the idea and the great writing.
P.S. cheers for the note on the F1 frontpage about the ROC!
from about 1 month ago
Ryan, thanks for the vote mate, real appreciate it. I know Bernie is an interesting subject --- I heard somewhere that one of the B-Schools in the US of A did a paper on him in their management class...just waiting for your edition on ROC mate
from about 1 month ago
is is true - the bschool study
let me know which school - so that i can track that paper
i think i shud hav access ?
from about 1 month ago
Will send across the paper when I get my hands on it...it ought to be there somewhere LJS...
about 1 month ago
Great read, Sarah and welcome back. You hit the nail, on the head in regards to the global economy and Bernie has done alot for F1, maybe his ego's getting in his way.
I work at a Veterinary practice, I've met, worked with some brilliant doctors, but over the years we've had a few if they wheren't told how great they where daily they couldn't function work wise and would be upset even crying. Maybe that's what wrong with Bernie, he needs to hear three times a day or more how great he is.
Now in NASCAR, we have a similar problem with Brian France. He did well with developing the Camping World Truck Series and with the Western Series part of NASCAR development but at local tracks. But running NASCAR, he's done a bad job, made a few bad decisions and it's hurt NASCAR in the current economy. Now I would have loved to have seen Bill France, Jr., promote Mike Helton as his replacement and have Brian replace Helton. It might have been the better choice.
Lastly, the world would be a better place right now, if all the banks ran themselves like Wells Fargo being debt free and didn't fall victim to all the greed that the others have.
from about 1 month ago
Thank you Mike, Wells Fargo has really done well. It is true what you say about poor choices and bad decisions ruining the sport. What I liked best about Bernie is that he was able to streamline the sport to a large extent and his current decisions though might seem not so intelligent at this point of time, might be the only way ahead--given the present volatility in the financial markets and the trends of investing in countries like China and India...he is just following the pattern set by other larger corporations.
about 1 month ago
Good read, Sara. I wouldn’t know an F1 car from a go-cart if it ran over my foot, but I like your passion for your topic here. Fast cars and slow money -- perhaps you could champion a new movement.
from about 1 month ago
Thank you Brian, great to see you back and great to see your feedback! True, it would be great if we could get some cost efficient fast cars...
about 1 month ago
thank YOU - thank You - thank you
for finally understanding bernie - and his craving for global deployment of f-1
you know am always a huge proponent or global reach-ability of f-1 ... and races in new places, when we are worried about why montreal still got booted - ask em to fix the track, they'll be back
love that about bernie - and his craving for higher deployment -
cheers - loved it, picked it
from about 1 month ago
Thanks matey, took us a while to get there :) thanks for picks mate!
about 1 month ago
i do like Bernie
string leaders - are HARDLY universally liked or accepted, except very few
Mandela comes to mind -
cheers
from about 1 month ago
That is a very good observation. All great mean are ridiculed at one point or the other
about 1 month ago
if applicable - happy thanks-giving sara, sorry of its offensive, i dont know your background
from about 1 month ago
Happy Thanksgiving mate! No worries, have loads of friends that do--miss those pumpkin pies...Happy Thanksgiving to you and your family!
from about 1 month ago
turkey too ....do you eat meat ?
from about 1 month ago
I do! but am allergic to turkey :(
from about 1 month ago
cheers - i really did like this article -
from about 1 month ago
thank you very much
about 1 month ago
Great article Sara! I guess we're both back around the same time haha.
I cannot agree with you more that he has great business intuition and has done something great with Formula 1, but I may need some clarification on one matter which I think I may have misinterpreted. I don't believe that he's doing what he has been and will be doing because of just love of the sport. First and foremost it's about bringing in the money which you pointed out. I do believe he has a passion for F1, but like sports team owners and league commissioners in the US and elsewhere, it is still a business first. And from Economics 101, the only goal for a business in its truest sense is to maximize profit, even at the cost of everyone else (so says theory). You had mentioned CVC and other funds, etc. I'm sorry I don't know why I think negative of people, but he can definitely have SIVs and diversion of funds through loopholes that are just milking away money without too many people knowing it right now. No, I don't think he can ever be like Ken Lay (I worked at the Department of Energy for a little bit and did extensive research and work on Lay and his cronies) but he may very well have stakes in different pots in which he decides the course of the championship based on those.
Now I hope that's not true, but it could be. Usually the most successful businessmen, in the truest sense and not humanitarian or philanthropist etc., screw over entities to make the bigger buck.
from about 1 month ago
Welcome back Sanjay, absolutely great feedback--this is why I needed you back! You are right that Bernie Ecclestone is not doing this just for the love of the sport and that he is altruist, if anything at all, he a shrewd business man--but unlike the cut of business men who are willing to run down their businesses once they have made their buck, Bernie comes from the old school and I am sure he would love to see F1 outlive him and I believe strongly that all these efforts to bring in oil kingdoms into F1 is a plan towards this end, it certainly is not so that he can make more money only from these strides.
about 1 month ago
Saraswathi,
While I don't really follow any form of racing, I've always had an appreciation for the F1, Indy, and stock/NASCAR spectacle of racing. The speed is amazing, and I'm envious, feeling I could do very well behind the wheel, but the racers sometimes pay with their lives. That's a very high price. I think the financing of sport, especially sports like these will be in question for sometime to come. Hey Tiger Woods just lost his Buick gravy train, everyone is vulnerable. Definitely a POTD worthy article, nice job.
from about 1 month ago
Welcome Chaz, thanks for the pick and the feedback. It is true that racing is a high risk proposition and also that this financial crunch will muddy the waters somehow
about 1 month ago
Thanks once again Sara for a quality read.
I've heard of Bernie Ecclestone though I don't follow the sport. Thank you for giving us a better understanding of the man.
from about 1 month ago
J.C, thanks for the vote mate, you really keep my spirits up...Bernie is a very interesting subject of study...wish I could write his biography or ghost write his autobiography
from about 1 month ago
since you told ghost write -
have you seen the movie 'hoax' with r-gere
if not - SEE it - you wud LOVE it
about 1 month ago
Great piece Sara.
from about 1 month ago
Thank you Times group...
about 1 month ago
great article, good to have you back. Fully deserves the PotD it got.
from about 1 month ago
Thanks mate! You guys do such a fine job that I can only sing "no news (from my side) is good news day" :-)
about 1 month ago
as always great stuff by you sara.
about 1 month ago
youve got to be the most interesting and most intellectual writer on this sight! thomas
about 1 month ago
Wow. This transcends mere blather about (insert sports issue here) and actually speaks to people who have brains in their heads. Great article!
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