LONDON (Brand Republic) - Kirch, the German media group, has secured almost $1bn (£690m) of the funding it needs to help troubled EM.TV increase its stake in Formula 1 company SLEC to 75%.
Kirch has undertaken a complicated rescue package of debt-ridden German rival EM.TV. Kirch paid $550m (£369.6m) for a 16.75% stake in EM.TV and half of its existing 50% stake in SLEC.
The deal now relies on Bernie Ecclestone, who controls SLEC which owns the broadcasting rights to Formula 1 racing among other commercial rights to the sport.
SLEC鈥檚 trustees have already warned Kirch that they have the right to veto the sale of its equity to a broadcaster. People close to the sport, including current world champion Michael Schumacher, are said to be concerned that Kirch鈥檚 involvement could see Formula 1 racing only available on pay-per-view TV.
Meanwhile, Kirch is involved in another battle over sports rights which could end free-to-air broadcasting of the football World Cup in the UK.
Kirch has launched a legal battle in the European Court challenging the UK Broadcasting Act which requires certain events, such as the Olympics and World Cup football, to be broadcast free.
Kirch acquired the European TV rights to the World Cup in 2002 and 2006 for £1.5bn. It believes the rights could fetch up to £180m but UK broadcasters, the BBC and ITV, have offered only £40m.
Outcome of the dispute could affect the broadcasting of the Olympics in 2004 as Kirch has also bought the TV rights to this event.