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[Servia]

Noticias del "señor" Kirch:Kirch empire crumbling

Media giant could be forced to sell off F1 rights as debts mount




The manufacturers want F1 to be free-to-air

Kirch, one of the world's biggest media companies – and the majority share owners of SLEC, which controls F1's television rights – is on the brink of financial ruin and may be forced to sell off its main assets.

It spent heavily over recent years, paying huge sums to acquire the rights for the 2002 and 2006 football world cups, as well as Formula 1, but has been unable to recoup its expenditure after the bottom fell out of the booming TV sports market. Its debts amount to €5.6bn.

Kirch's desire to make F1 pay-per-view was met with hostility by the manufacturers, who are eager to tap into the larger free-to-air market. They have threatened to set up a rival series and without the manufacturers support, the F1 rights, which are valued at €1.2bn, would be worthless. Company boss Leo Kirch met executives from Ford, Fiat, BMW, DaimlerChrysler and Renault last week, but the parties were unable to come to an agreement.

The German government could come to Kirch's aid, as the company is the main benefactor of the country's premier football league, the Bundesliga. However, any deal would be to safeguard national interests. Rupert Murdoch, whose Sky satellite broadcasting company is showing enhanced digital F1 coverage this year on pay-per-view, has been touted as a potential buyer.