By Amy-Jo Crowley and Elvira Pollina LONDON/MILAN, April 24 (Reuters) - French automotive group Cosmobilis is in talks to buy the commercial rights to the World Rally Championship (WRC), two people
France's Cosmobilis in talks to buy World Rally Championship rights, sources say
Cosmobilis Pursues Acquisition of WRC Commercial Rights
(Removes extraneous words from advisory)
By Amy-Jo Crowley and Elvira Pollina
Background of the Negotiations
LONDON/MILAN, April 24 (Reuters) - French automotive group Cosmobilis is in talks to buy the commercial rights to the World Rally Championship (WRC), two people familiar with the matter told Reuters.
Cosmobilis moved ahead after an auction for Munich-based WRC Promoter was held by existing rights holders Red Bull and German investment firm KW25 earlier this year, the people said.
Potential Deal Timeline and Confidentiality
• If negotiations and financing are concluded successfully, a deal could be announced in the summer, one person said.
• The sources, who asked not to be named because the matter is confidential, said there remained a chance of no deal.
Responses from Stakeholders
• A Cosmobilis spokesperson declined to comment. WRC, Red Bull and KW25 did not reply to requests for comment.
Financial Details and Key Figures
Expected Price and Leadership
• The likely price for WRC Promoter is expected to be less than 500 million euros ($585 million), one person said.
• Eric Boullier, co-founder and CEO of Cosmobilis' Circle unit, is leading the bid, the people said. Boullier, who did not respond to requests for comment, was previously Lotus Formula One -- now Renault-owned Alpine -- principal and was racing director of McLaren from 2014 to 2018.
Role of FIA and Future Outlook
FIA's Tender Process
• Motorsport's governing body, the International Automobile Federation (FIA), announced last year a tender process to replace Red Bull and German investment company KW25 as commercial rights holders of the World Rally Championship after Reuters reported preparations for a sale.
Official FIA Statement
• An FIA Spokesperson said in a statement: “The process to identify a new commercial rights holder for the FIA World Rally Championship is at an advanced stage. We look forward to sharing further details shortly.
Commitment to Growth
• "The FIA is committed to ensuring the WRC continues to grow as one of the world's premier motor sport disciplines, and we are confident the outcome of this process will reflect that ambition.”
WRC Overview and Recent Developments
• The WRC races on four different continents with 14 rounds this year. Its reigning champion is France's Sebastien Ogier. Since 2022, WRC Promoter has also organised the European Championship and the Rallycross Championship.
($1 = 0.8543 euros)
(Reporting by Amy-Jo Crowley in London and Elvira Pollina in Milan; Additional reporting by Alan Baldwin; Editing by Anousha Sakoui and Alexander Smith)
