LONDON (Brand Republic) - German media group Kirch鈥檚 involvement in Formula 1 racing has been plunged into doubt because it is said to be refusing to compromise with the sport鈥檚 governing body over the ownership of SLEC, the company which holds the rights to Formula 1 racing.
Max Mosley, who administers the sport through governing body the Federation Internationale de l鈥橝utomobile (FIA), is said to be putting pressure on Kirch to sell part of its holding in SLEC to car manufacturers to secure their long-term participation in Formula 1 racing.
If an agreement is not reached between Kirch and the FIA, Mosley could sell the rights to the car manufacturers instead of SLEC, which is yet to renew the rights for a further 100 years.
Kirch became involved in SLEC when it rescued smaller German rival EM.TV, which held a 50% stake in SLEC, from bankruptcy. Kirch paid £380m for a 16.75% stake in EM.TV and financed EM.TV鈥檚 $1bn (£691m) option to increase its existing 50% stake in SLEC to 75%.