Category: Formula 1

September 7, 2016
Transaction price represents enterprise value for Formula One of $8.0b
Chase Carey appointed as Chairman; Bernie Ecclestone to remain CEO
Initial sale of 18.7% minority stake in Formula One, with 100% sale subject to satisfaction of conditions
ENGLEWOOD, Colo. & LONDON–(BUSINESS WIRE)– Liberty Media Corporation (“Liberty Media”) (Nasdaq: LSXMA, LSXMB, LSXMK, BATRA, BATRK, LMCA, LMCK) and CVC Capital Partners (“CVC”) announced today that Liberty Media has agreed to acquire Formula One, the iconic global motorsports business, from a consortium of sellers led by CVC.

Liberty Media owns interests in a broad range of media, communications and entertainment businesses. Those interests are attributed to three tracking stock groups: the Liberty SiriusXM Group, the Liberty Braves Group, and the Liberty Media Group.

The consideration comprises cash and newly issued shares in the Liberty Media Group tracking stock (LMCK) and a debt instrument exchangeable into shares of LMCK. The transaction price represents an enterprise value for Formula One of $8.0 billion and an equity value of $4.4 billion(1).

The acquisition will be effected by Liberty Media acquiring 100% of the shares of Delta Topco, the parent company of Formula One (Delta Topco herein referred to as “Formula One”)(2). The acquisition is subject to the satisfaction of certain conditions and is described in more detail below.

Concurrent with the execution of the agreement to effect the acquisition, Liberty Media has completed the acquisition of an 18.7% minority stake in Formula One for $746 million, funded entirely in cash (which is equal to $821 million in consideration less a $75 million discount to be repaid by Liberty Media to selling stockholders upon completion of the acquisition). Prior to completion, CVC Funds will continue to be the controlling shareholder of Formula One.

After completion of the acquisition, Liberty Media will own Formula One and it will be attributed to the Liberty Media Group which will be renamed the Formula One Group. The consortium of sellers led by CVC will own approximately 65%(1)(3) of the Formula One Group’s equity and will have board representation at Formula One to support Liberty Media in continuing to develop the full potential of the sport. In addition, a CVC representative will be joining the Liberty Media Board of Directors.

Chase Carey has been appointed by Delta Topco and will serve as the new Chairman of Formula One, succeeding Peter Brabeck-Letmathe, who will remain on Formula One’s board as a non-executive director. Bernie Ecclestone will remain Formula One’s CEO.

Greg Maffei, President and Chief Executive Officer of Liberty Media, said: “We are excited to become part of Formula One. We think our long-term perspective and expertise with media and sports assets will allow us to be good stewards of Formula One and benefit fans, teams and our shareholders. We look forward to working closely with Chase Carey and Bernie Ecclestone to support the next phase of growth for this hugely popular global sport.”

Chase Carey, Chairman of Formula One, said: “I am thrilled to take up the role of Chairman of Formula One and have the opportunity to work alongside Bernie Ecclestone, CVC, and the Liberty Media team. I greatly admire Formula One as a unique global sports entertainment franchise attracting hundreds of millions of fans each season from all around the world. I see great opportunity to help Formula One continue to develop and prosper for the benefit of the sport, fans, teams and investors alike.”

Bernie Ecclestone, Chief Executive Officer of Formula One, said: “I would like to welcome Liberty Media and Chase Carey to Formula One and I look forward to working with them.”

Donald Mackenzie, Co-Chairman of CVC, commented: “We are delighted Chase Carey is joining Formula One as its new Chairman and that he will be working alongside Bernie Ecclestone. Chase’s experience and knowledge of sport, media and entertainment is as good as it gets and we are very pleased to secure his services. Bernie has been a wonderful CEO for us over the last 10 years. There have been many successes and the occasional challenge but there has never been a dull moment and we have had a lot of fun. The combined skills of Chase and Bernie mean that the successes should continue and we wish them well. We would like to thank Peter Brabeck-Letmathe for his outstanding contribution during his tenure as Chairman. His leadership has served the company well, and we are pleased that he will remain on the board as a non-executive director.”

In the acquisition the selling stockholders will receive a mix of consideration comprising: $1.1 billion in cash, 138 million newly issued shares of LMCK and a $351 million exchangeable debt instrument to be issued by Formula One and exchangeable into shares of LMCK. Funding for the cash component of the acquisition is expected to come from cash on hand at the Liberty Media Group. The newly issued LMCK shares will be subject to market co-ordination and lock-up agreements.

The Teams will be given the opportunity to participate in the investment in Formula One, and the detailed terms of that investment will be agreed in due course. Certain teams have already expressed an interest in investing after completion of the acquisition.

The interest in Formula One already acquired by Liberty Media, and the remaining interest to be acquired upon the closing of the acquisition, along with $4.1 billion of existing Formula One debt (which will be non-recourse to Liberty Media) and $0.7 billion in Formula One cash, is being attributed to the Liberty Media Group tracking stock.

Upon completion of the acquisition, the Liberty Media Group will be renamed the Formula One Group and the ticker symbols for the Series A, Series B and Series C Liberty Media Group tracking stocks will be changed from LMC (A/B/K), respectively, to FWON (A/B/K), respectively. Formula One will remain based in London.

The completion of the acquisition is subject to certain conditions, including the receipt of: (i) certain clearances and approvals by antitrust and competition law authorities in various countries, (ii) certain third-party consents and approvals, including that of the Fédération Internationale de l’Automobile, the governing body of Formula One, and (iii) the approval of Liberty Media’s stockholders of the issuance of LMCK shares in connection with the acquisition and the name change of the Liberty Media Group to the Formula One Group, and is expected to close by the first quarter of 2017. Additional information regarding the acquisition and Formula One will be included in a proxy statement to be filed by Liberty Media with the Securities and Exchange Commission relating to the matters to be voted upon by Liberty Media’s stockholders described above.

Liberty Media’s President and CEO, Greg Maffei and Formula One’s Chairman, Chase Carey will host an investor conference call at 6:00pm ET / 4:00pm MT on Wednesday, September 7, 2016 to discuss the acquisition in more detail. The call can be accessed by dialing: (i) (844) 838-8043 (U.S. / Canada), (ii) (678) 509-7480 (International) or (iii) 0800-028-8438 (U.K.) at least 10 minutes prior to the start time. The call will also be broadcast live across the internet and archived on Liberty Media’s website. Presentation materials to be used during the investor call have been posted to the Liberty Media website. To access the webcast and the accompanying presentation materials go to http://www.libertymedia.com/events. An archive of the webcast will also be available on Liberty Media’s website for one year after appropriate filings have been made with the SEC. Relevant images for media use will be posted to Liberty Media’s website under the “What’s New” section of the Liberty Media homepage.

Morgan Stanley is serving as exclusive financial advisor and Baker Botts LLP is serving as legal advisor to Liberty Media. Goldman Sachs International is serving as exclusive financial advisor and Freshfields Bruckhaus Deringer and Weil, Gotshal & Manges are serving as legal advisers to Delta Topco.

Forward-Looking Statements

This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the proposed acquisition of Formula One, the expected benefits of the transaction, other potential third party investments in Formula One, the renaming of the Liberty Media Group and the corresponding change in ticker symbols and other matters that are not historical facts. These forward-looking statements involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including, without limitation, the satisfaction of conditions to the proposed acquisition of Formula One. These forward looking statements speak only as of the date of this press release, and Liberty Media expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Liberty Media’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Please refer to the publicly filed documents of Liberty Media, including its most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, for risks and uncertainties related to Liberty Media’s business which may affect the statements made in this press release.

Additional Information

Nothing in this press release shall constitute a solicitation to buy or an offer to sell shares of Liberty Media’s Series C Liberty Media common stock or any other series of its common stock. Liberty Media stockholders and other investors are urged to read the proxy statement to be filed with the SEC because it will contain important information relating to the proposed acquisition of Formula One. Copies of Liberty Media’s SEC filings are available free of charge at the SEC’s website (http://www.sec.gov). Copies of the filings together with the materials incorporated by reference therein will also be available, without charge, by directing a request to Investor Relations, (720) 875-5420.

Participants in a Solicitation

The directors and executive officers of Liberty Media and other persons may be deemed to be participants in the solicitation of proxies in respect of any proposals relating to the proposed acquisition of Formula One. Information regarding the directors and executive officers of Liberty Media and other participants in the proxy solicitation and a description of their respective direct and indirect interests, by security holdings or otherwise, will be available in the proxy materials regarding the foregoing to be filed with the SEC.

About Liberty Media Corporation

Liberty Media Corporation operates and owns interests in a broad range of media, communications and entertainment businesses. Those businesses are attributed to three tracking stock groups: the Liberty SiriusXM Group, the Liberty Braves Group and the Liberty Media Group. The businesses and assets attributed to the Liberty SiriusXM Group (Nasdaq: LSXMA, LSXMB, LSXMK) include our interest in SiriusXM. The businesses and assets attributed to the Liberty Braves Group (Nasdaq: BATRA, BATRK) include our subsidiary Braves Holdings, LLC. The businesses and assets attributed to the Liberty Media Group (Nasdaq: LMCA, LMCK) consist of all of Liberty Media Corporation’s businesses and assets other than those attributed to the Liberty SiriusXM Group and the Liberty Braves Group, including its interests in Live Nation Entertainment and Formula One, and minority equity investments in Time Warner Inc. and Viacom.

About CVC Capital Partners

CVC Capital Partners is one of the world’s leading private equity and investment advisory firms. Founded in 1981, CVC today has a network of 24 offices and over 400 employees throughout Europe, Asia and the US. To date, CVC has secured commitments of over US$85 billion in funds from a diverse and loyal investor base, completing over 300 investments in a wide range of industries and countries across the globe, with an aggregate enterprise purchase value of over US$250 billion.

Source: Liberty Media Corporation

eom/News Provided by Acquire Media

DRIVERS

1 – Nico ROSBERG (Mercedes)

2 – Lewis HAMILTON (Mercedes)

3 – Sebastian VETTEL (Ferrari)

PODIUM INTERVIEWS

(Conducted by Eddie Jordan)

Nico, I don’t need to tell you, your 50^th podium, your 21^st race win and more importantly, his first win in Monza!

Nico ROSBERG: Thank you very much everyone, it’s absolutely amazing. It’s a very special day for me. I’m very happy to finally win here in Italy. You guys are unbelievable and it just makes it phenomenal to be up here so thank you very, very much and I’m going to enjoy this day.

Come on, tell us a little bit about the race. It was pretty much trouble-free, could your sort of control it from the front all the time apart from the pit stop?

NR: It was all down to the start. I had an awesome start and that made the win, so it was all there.

We’ll be back to you in a second. Ladies and gentleman, we know this man. Come on, how good is it to be here in front of all your adoring fans. Lewis, was it all down to the start?

Lewis HAMILTON: Firstly, look at this crowd. A big thank you to everyone for coming out. This is the best crowd we get all year; this is incredible. Obviously the start, but it’s still a great day for Mercedes Benz and I’m proud to be a part of it.

I’ve got to say, 14 race gone, two points between you two guys, I mean it’s all to play for isn’t it? it’s fantastic for us, the fans.

LH: Yeah, it’s good for you guys. I don’t know it it’s fantastic for the fans in the sense that there should have been more of us racing, there should have been a bigger race between Ferrari and us this weekend but hopefully in the future there will be.

Lewis, fantastic, well done and well done yesterday, great qualifying. Sebastian, first of all… it’s hard to believe this, isn’t it? It’s unbelievable.

Sebastian VETTEL: Unbelievable. This is the best podium in the world. Noi, Ferrari abbiamo i migliori tifosi del mondo. Grazie a tutti, grazie per essere venuti, grazie!!

This is dreamtime but nevertheless I’ve got to ask you the question: when do you think, how soon can you take these boys from Mercedes on? How soon can you be on the top of the podium?

SV: Well, we’ll try. We’re working very hard. They are doing a very good job, so you have to say “well done” and show them the respect for what the achieved in the last couple of years, but we’re fighting. I’m sure Ferrari will come back. I can’t make any promises about when, but I know we will, so keep believing, keep it up, I know that we believe in it and I’m sure we will succeed.

Why don’t you just say a few words to them in their Italian tongues?

SV: Un’altra volta – grazie, grazie mille. Noi siamo Ferrari.

Nico, a wonderful day for you, can you describe it?

NR: Oh yeah, it’s unbelievable. This makes it unbelievable. A part of me is Italian in a way, because I have a lot of friends and grew up with the culture, so all the more special. Siete i migliori del mondo, veramente. Incredibile. Grazie mille. Troppo bello. Proviamolo!! (then he sings).

We knew you were a driver but we didn’t know you were a member of The White Stripes! Anyway, please tell us, you’ve come back from the summer break and you’ve won those two races, you’re like a new man aren’t you, what’s happened to you?

NR: I’m feeling great. The race is on with Lewis of course, it’s always going to be a great battle and I look forward to what’s to come.

PRESS CONFERENCE

Nico, congratulations, your first Monza victory, second win in a week. Obviously you won it at the start. We talked about the start as an opportunity here yesterday, so tell us about that? Two points in it now in the championship and it looks like you’ve got a future in singalong as well?

NR: As we discussed, the start was the big opportunity and that worked out fantastically. I got a great start, because of course we had the soft and Ferrari had the supersoft and that worked out great and that gave me the race win in the end, because from then on I was able to control the pace and we had good speed. The singalong was awesome. The Italian crowd is just the best in the world and it’s really good fun.

Is that become a new signature when you win now?

NR: It just works here with them.

OK. Lewis, conversely, you lost it at the start. I understand you told the team by radio that it was your mistake and you obviously did everything you did to recover but were the 10 laps behind the Williams of Bottas… did that leave you too much to do in the end?

LH: Well, obviously yeah it was lost at the start. To be honest, I knew my engineers would be worried and nervous of how the start went, so that’s why I tried to put their minds at ease. I don’t really know what happened at the start, though obviously I will try to understand it later. I did everything normal. But, yeah, it’s hard to overtake here. Live to fight another day and you know a great audience here, as every year just an incredible crowd. A lot of Ferrari fans but also a lot of British flags were here today so I appreciate them coming out.

Q: Sebastian, obviously a slightly different strategy, supersoft, supersoft, soft. Was there nothing more you could do to protect the track position that you got after Lewis’ poor start in the first stint, with the tyre choices you had. And what positives do you take from this weekend in general?

SV: Well, he did one stop less, so obviously it was clear after our second stop he would be ahead of us – and I think the problem was that he was too far ahead of us. Simple as that. I think we were slightly quicker, we were on a fresher set of tyres but not quick enough to really catch up. I think in the end the gap was still fairly big. Nevertheless I think it’s been a great day. We’ve had a really good start, got a bit stuck. Maybe I should have gone to the left, I wasn’t sure what Lewis was going to do. Then I decided to go in the middle of them and was side-by-side with Nico but he did a good job braking for Turn One. I was hoping that he’ll go on the brakes a bit sooner but he didn’t. And then I had another crack, another look into Turn Four but I wasn’t close enough to be honest. After that I think we had good pace but it was sort of expected that they are obviously a bit quicker than us, in race pace as well. And I think you could see at the end the result was fairly clear. Still, I think it’s been a mega day for Ferrari. To get so much support. I think it felt even more than last year, which is great and hopefully it all peaks next year. Still, I can’t complain: two podiums in Monza two times at the start with Ferrari. I think it’s a great achievement, really happy and proud of that. But for sure, you’re always aiming for the top step, also to give the maximum support back. It’s been incredible. Coming into the track, leaving the track, even leaving late at night, they’re just happy to wave, with all the Ferrari kit, with all the flags equipped, it’s great to see the passion in this country for Ferrari and to be part of that is great. Obviously our mission doesn’t stop here. It’s only the beginning. We want to win. That’s what we really want. That’s what the people deserve as well.

QUESTIONS FROM THE FLOOR

Q: (Heikki Kulta – Turun Sanomat) Nico, I would like to congratulate you to become the first ever Finnish national who has won a grand prix on Italian soil. Winning at Spa and then Monza first time, legendary places, how does that feel in your career.

NR: It feels great.

SV: Being a Finn, you should answer in Finnish…

NR: Just talking about today it’s special because I really feel close to the Italian culture in many ways. All my best friends are Italian, I speak Italian and have a lot of connections with Italy and a lot of support here also, so it’s amazing to see. On this historic track it’s been a special place to win.

I didn’t… Imola, Monza, no Finn has ever won? Wow. Cool.

Q: (Dan Knutson – Auto Action / Speed Sport) Lewis, you said you don’t know exactly what happened in the car at the start but can you tell us what was going on in there and how you felt to see all those cars go screaming by.

LH: To be honest I don’t really remember. I do remember a bunch of cars coming by but, as I said, I did the sequence, everything exactly the same and yeah, I think I just got lots of wheelspin. A bit like Nico’s start perhaps in Hockenheim. Yeah.

Q: (Peter Farkas – Auto Motor) Sebastian, yesterday in qualifying, bigger difference to Mercedes than last year, today in the race, maybe a smaller difference, you were even closing on the Mercedes with the soft tyres at the end. What was the reason for that? That you were so much quicker today. And how encouraging is it for the next two races especially?

SV: Well, we had a different strategy so obviously we had fresher tyres, different compound at the end, it was clear and expected that we were quicker and catching up – but probably not enough really to put them seriously under any pressure. I think we extracted our best race which obviously, y’know… it’s been a while since it’s been the case. It speaks for the team. I think we’ve done a very good job this weekend, everyone has been really focused and, y’know many times I hear that coming to Monza, yeah, it’s a sort of extra burden and pressure and all this. I think it’s much the opposite for everyone in the team. You come here, people are able on Thursday, Friday to bring some of their family to the track, Ferrari is very helpful and open to give the chance to some of the mechanics and engineers, a lot of their families come here to see them and support them. And equally we has so much support from all the fans around the track, so of course you want to do well, it’s family in the end. We have probably the largest family we bring to a race track in that regard but I think everyone knows when I’m saying you want to do well in front of your family. So, of course, there is a bit of tension but if anything I think it lifted us up this weekend. It was great to see also the majority of the board of Ferrari coming, turning up, our president, giving the support and it’s been exactly the opposite of what people thought – or wrote probably – about. Really no pressure. We knew it would be tough against Mercedes, it has been tough and we didn’t beat them. Nevertheless, I think we did a great job, we pulled out our best, we had a great race. We finished third and fourth is the optimum we could get. That’s a lot to be proud about. Obviously the fans deserve nothing else but the top step and hopefully we can give it to them the next couple of years.

Q: (Ralf Bach – AutoBild Motorsport) Two questions for Nico: firstly, are you the new Pirelli ambassador or why do you wear this cap here? And secondly, for what reasons didn’t you and Lewis use the supersoft tyres here

NR: I apologise for that mistake to Mercedes, sorry for that. I didn’t realise. I’m sure I’ll hear about that later on.

And what was the second part? Why didn’t we use them? Because the best race for us was soft-medium, that was the fastest way to get to the end of the race, as you could see. It was good speed.

Q: (Livio Orrichio – GloboEsporte.com) Lewis, curiosity, when you face a situation like today and you see your opponents overtaking you at the start, knowing that you have a very fast car, do you have time at that moment to think ‘oh my God, maybe I lost the race’ or do you only concentrate yourself to try to get some positions back?

LH: I think at that moment you only think about getting back to where you started. So I’d fallen back and my goal was to try and get back up to where I was. But of course, I could see Nico pulling away, and I know from my experience of being here in Formula One that whilst anything can happen, the chances of the win decrease lap by lap, second by second so of course I knew that at quite an early stage that winning the race was not going to be possible but I would try but I got up to second and that’s the best I could do with such a loss at the start.

Q: (Peter Windsor – F1 Racing) Sebastian, it was quite unusual to see you leaving the pit lane after your second stop with the DRS open on the run down to the first corner. I presume that’s because you were in the activation zone behind Kvyat coming into the pits. Can you talk about that? It’s quite interesting. And b) you had a big lock-up coming in and I wondered if that was due to the DRS being half-closed or not?

SV: No, I had lock-up because to be honest the mindset when you come in is that you don’t really care about those tyres any more and you just to try to hit the brakes as hard as you can and stop for the line, so I had a bit of a lock-up but at that point you’re not really bothered, you just stamp on the brakes so that’s what triggered it. And then on the way out, I did have the advantage of the DRS so even if it’s 0.0 or something, you still go for it.

Q: (Barna Zsoldos – Nemzeti Sport) To the Mercedes drivers; it was the seventh time this year that either of you lost the leading position, just after starting from pole. Usually you very quickly adapt to every technical rule change so can you explain why it’s so difficult to get it right with this simple clutch?

Q: I think he means single clutch.

NR: It’s the rule change, it makes it more challenging. Because now it’s down to the driver to do it. It’s more difficult.

LH: Don’t agree that it’s more down to the driver. I think the driver thing is the same as it was before, it’s just that we have a relatively inconsistent clutch and it’s hard to… In the past we were able to be told our clutch temperature and it was easier to hit our target as well but now it’s a lot less easy to know what your clutch is going to be delivering and what it’s not.

Q: (Peter Windsor – F1 Racing) Nico, just following up from what you were saying earlier about starting on the harder tyre than Ferrari, are you able to simulate that, practise that, given the allocation situation with tyres? Are you able to be that precise in practice starts?

NR: Well, that’s the thing. No, because we’re not even practising on the grid, we’re practising at the end of the pit lane which is a whole different world. Everybody’s practising, their rubber’s going down so it’s a little bit trying to make the best guess and that’s what makes it so variable

Q: (Heikki Kulta – Turun Sanomat) Sebastian, after Spa with Kimi, were you more cautious at the first corner than usual?

SV: Er, well, I was side-by-side with Nico so yeah, but as I said, they did a good job on the brakes and obviously I didn’t see the car behind. To be honest, at no point did Spa cross my mind. I think after plenty of starts, I think Monza at turn one, we all know it’s tight so I did what I felt was right and it seemed to be right. I think I left enough room for Nico, obviously I wasn’t really a challenge for him into turn one and for the cars behind, obviously I saw down to turn one that Nico and myself were putting up a shield and giving a lot of tow for the cars behind so it was natural  that they closed up. Equally I think they behaved well, doing their job right under braking, not overshooting so it all seemed fine coming out of turn two at least.

Q: (Peter Farkas – Auto Motor) Nico, it’s often said that it tends to go, for some reason, in waves, between Lewis and yourself. Both of you have waves when you are winning more races one after another and then it tends to change. So after now, winning two races in a row in one week, do you feel that the tide is in, it’s with you now?

NR: No, not at all. I don’t see waves, I just see it race by race and today I’m very very happy to have won here and next is Singapore and I will try to win there and that’s it.

eom/FIA transcript of the post-race press conference

DRIVERS

1 – Nico ROSBERG (Mercedes)

2 – Max VERSTAPPEN (Red Bull Racing)

3 – Kimi RÄIKKÖNEN (Ferrari)

TV UNILATERAL

Nico, many congratulations. Was that session as smooth on the inside as it looked from where we were sitting?

Nico ROSBERG: No, we had a difficult weekend up to now, especially this morning. We were seriously off the pace on one lap, so it really wasn’t so easy coming into qualifying. But we got the job done in the end. We really made quite a few changes on the car coming into qualifying and we found the right way. It all came together and it was feeling good, so I’m very pleased about that one.

Congratulations. Max, coming on to you, this is you first ever front-row start and you become the youngest every driver to start on the front row of the grid for a grand prix. Just 0.1s behind Nico, do you think pole position was on today?

Max VERSTAPPEN: Yeah, I mean, you can always do a better job. But also I think also Nico could have done a better lap; it’s always when you put everything together. But I think in the end to be so close to them on a track with some long straights, we can be very pleased with that. The whole weekend has been very smooth, even though I had some little issues this morning. From there on the mechanics did a great job and in qualifying the car was working really well, as you could see in sector two. I’m just very pleased to be second here in front of my fans, it’s just a great motivation when you see them next to the track.

Congratulations to you. Kimi, how is the car performing this morning, it looked like there were some nervous moments in Q2 when you went back out for a second run?

Kimi RÄIKKÖNEN: No, it was our plan. There wasn’t really anything odd going on. Obviously in the last qualifying I ran wide in the first try and that wasn’t ideal. But the second run was pretty good, but comparing to my Q2 lap I lost a few tenths in the last chicane, so obviously the pole position was there, so it was a bit disappointing because obviously once we are close by there it would have been nice to get it. But tomorrow is the race and I think if we compare it to the previous few races we have to be satisfied with where we are after qualifying.

Thank you Kimi. Coming back to you Nico: you’re on pole, your main championship rival will be starting from the back tomorrow, just give us your thoughts going into the race?

NR: Well, happy to be on pole but the only thing is it’s going to be a very challenging race, because the tyres are extremely difficult out there this weekend and strategy and everything, it’s going to be very, very interesting. I think we’re going to see a bit of everything, let alone with Max being on supersoft and Kimi on soft. Is that the case? Yeah, Kimi on soft. There are going to be a whole load of things going on. It’s definitely not going to be an easy one.

PRESS CONFERENCE

Nico, you said a moment ago that you had a few set-up problems yesterday. Can you elaborate on what they were and what you did to resolve them?

NR: We just weren’t quick, because it’s very, very hot out there and because the Pirelli pressures are very, very high for this weekend and so it was just a bit of a different world out there and we really had to change a lot of things and adapt but great to see how we managed to turn it around and get there eventually, just in time for qualifying, because even just this morning in FP3 we were quite a bit off the pace still.

Thanks Nico. Max, coming to you, what does it mean to you to break this 55-year record that had belonged to Ricardo Rodriguez, to be the youngest driver to get a front-row start?

MV: To be honest, not that much. I’m just very happy to be on the front row in Spa in front of all my fans. I mean, it’s great to break a record but I want to break other records.

Thank you Max. Kimi, just your thoughts, a few more thoughts please going into tomorrow’s race, because you have opted for more supersoft tyres than any of the other front-running teams, do you think that will compromise you?

KR: No, it shouldn’t. You never know what will happen tomorrow, but ideally we should be just fine. Tomorrow will tell but obviously it’s probably more tricky than anyone expected, because the conditions are not exactly normal Spa conditions. It’s a bit tricky with the tyres, but it’s the same for everybody and I think what we have is enough for what we want to do, so it should be fine.

QUESTIONS FROM THE FLOOR

Q: (Louis Dekker – NOS.NL) For Max, how frustrating was it this morning knowing that there’s tens of thousands of Dutch people and not be able to drive?

MV: I think it was even more frustrating for myself knowing that I couldn’t get the laps in. Of course it’s great to drive in front of your fans, to show yourself – but I couldn’t get my references in for qualifying. But luckily it was not a big issue and we solved it in time. From there on it was just a very good qualifying.

Max, do you think you could have found more pace in qualifying, had you been able to run this morning?

MV: That’s always very difficult to say. I think it just gives you a better reference straight away. On the other hand, we should be on our limits quite easily and I think after one run in qualifying it was there again. So maybe, maybe not.

Q: (Oana Popoiou – F1 Zone) A question for Kimi. Ferrari seems to be back to a better shape this weekend, can you tell us what is different from the previous races?

KR: I have to say, like I said earlier, it’s nice to be so close but obviously we’d rather be on pole position. I thought we had a good chance. I lost some time in the last chicane but… these conditions, it’s very hot, it’s tricky with the tyres for everybody… I don’t know. If we would know, it would be much easier to be at least in this position always. It has changed quite a few times this year, depending on circuits and conditions, so… who knows?

Q: (Livio Oricchio – GloboEsporte.com) To Max. You start on supersoft tyres and your team-mate with soft tyres. We knew this weekend the supersoft does not permit too many laps. What is the strategy exactly you are planning?

MV: To start on the supersoft and then see where we end up after a few laps. We have some different strategies out there but I think at the end of the day, yeah, I have to box a bit earlier – but after this there are a lot of laps to go and we’ll see what happens.

Q: (Michael Schmidt – Auto Motor und Sport) Max, why in the first place did you not try it on soft in Q2? Didn’t you have trust to do it?

MV: Because I decided, together with the team, that I wanted to run the supersoft. I think that’s the best strategy to go into tomorrow – but we’ll see how it pays off.

Q: (Heikki Kulta – Turun Sanomat) Kimi, how crucial is the first stint of the race for the result? There seems to be different kinds of compounds for the top drivers.

KR: Obviously the start and the first laps is very important in every race. I don’t think it will decide what happens for the whole race. It will be quite a tricky race for everybody with the tyres and with the conditions. It’s not going to be very easy but hopefully we make the right choices when it comes and get the best out of it – but for sure it’s not going to be very easy.

Q: (Dan Knutson – Speed Sport / Auto Action) Following up on what Kimi was talking about, for Nico and Kimi, how do you see the start playing out? Very short run down to the beginning but the guy behind you has very sticky tyres.

NR: I’m feeling good about it. Starting first. Usually you can manage to keep first position all the way up the hill but yeah, of course, need to get a good run through Eau Rouge but it will be OK.

Kimi?

KR: I don’t think there is an awful lot of different on the start between the tyres. Theirs is maybe a little bit better with the supersoft but as long as we do a proper start it should be fine.  

Q: (Mike Doodson – Auto Action) We all know about Eau Rouge and how exciting it is but also that circumstances change each year. Which is the hairiest corner on the circuit for you all this year?

NR: The hairiest is maybe turn 10, turn 10 is pretty challenging because if you run a little bit further out and you get onto the Astroturf it can flick you off into the tyre barrier so that’s one of the toughest ones.

MV: I agree.

KR: Every corner can go wrong but Eau Rouge has been less of a challenge for some years but I think in the race it might become a bit more tricky again. Overall, I think there are a lot of nice places – corners – here.

Q: (Walter Koster – Saarbrucken Zeitung) Nico, pole number 28, do you regret that your teammate has not fought with you and therefore is this pole less important? I know, pole is pole.

NR: I’m very happy because it was a battle out there, everybody behind was very very close and I managed to get the lap and get the pole so I’m definitely very pleased with that one. That’s it.

Q: (Louis Dekker – NOS.NL) Kimi and Max; Kimi, you’re again just behind Max Verstappen. It seems like you spend a lot of time this year looking at his back. Do you know how to overtake?

KR: Who knows in the first corner but it’s a normal race and we will see what happens? Try and make a good start and go from there.

Q: (Michael Schmidt – Auto Motor und Sport) Kimi, in the first outing in Q3 you had been on the gravel I think in turn 14; did that compromise your last run in terms of taking risks?

KR: Not really, obviously it would have more easy if I hadn’t run out. The lap was also very good, the first one but really in the last chicane I got a bit of understeer and lost a couple of tenths compared to my Q2 lap. For sure we had a chance to put it on pole and I guess it would have been more easy not going off in the first run and having a decent lap there but that’s how it is.

Q: (Livio Oricchio – GloboEsporte.com) Nico, it looks like Red Bull and Ferrari are closer on this track. Do you have this impression? Do you think during the 44 laps, considering the tyre question in this Grand Prix, they can even challenge Mercedes more?

NR: Definitely, it’s a very different situation out there with the temperature and the tyre pressures that we have and they are very close, yeah, and so tomorrow it’s going to be a very very demanding race against both of them. I think the best long run for now is from Red Bull on Friday. I think.

Q: (Barna Zsoldis – Nemzeti Sport) Nico, starting from pole in Germany and Hungary as well, you lost the first position quite early. Any negative thoughts or feelings because of that?

NR: It’s even shorter to turn one here so that’s a very good thing.

eom/FIA press release

Max Verstappen went quickest in the second practice session ahead of the Belgian Grand Prix, as Red Bull Racing turned a low key morning session into a headline-making afternoon outing with Daniel Ricciardo taking second spot.

In the first session Verstappen finished in seventh position, behind Ricciardo. Part of the reason for that was Mercedes’ decision to run the supersoft tyre in FP1, while their rivals chose to stick with tradition and leave their performance runs until the afternoon.

With Mercedes leaving the red-banded tyre alone in session two, the way was clear for Verstappen to push for P1 and the Dutch driver, cheered on by a sizeable contingent of his countrymen in the grandstands, duly set the pace with a time of 1:48.085, 0.263s quicker than Nico Rosberg’s morning timesheet topper. It was also good enough to see Verstappen finish 0.25s clear of team-mate Ricciardo, with Force India’s Nico Hulkenberg half a second further back in third place.

Ferrari’s Sebastian Vettel was fourth quickest 0.938s behind Verstappen. The four-time champion split the Force Indias with Sergio Perez in fifth place just over seven hundredths of a seconds behind the German.

After topping the morning timesheet with a lap set while using the Halo head protection device, Rosberg finished the afternoon session in sixth place. His best lap of 1:49.161 was set on the soft compound tyre. Kimi Raikkonen in the second Ferrari was seventh quickest with a lap of 1:49.244 and the Finn finished ahead of Haas’ Romain Grosjean, McLaren’s Jenson Button and the second Haas of Esteban Gutierrez. Button’s time, using Honda’s new power unit, was encouraging for McLaren after a troubled morning session in which Fernando Alonso managed just three laps.

The Spaniard recovered in the afternoon turning 30 laps with a new power unit to set the 12^th fastest time behind the impressive Pascal Wehrlein who set a time of 1:49.716. Alonso’s need for a new power unit means he will take a large grid penalty for Sunday’s race.

Championship leader Lewis Hamilton ended the session 13th quickest as he only used a prototype soft Pirelli compound tyre.

2016 Belgian Grand Prix – Free Practice 2
1 Max Verstappen Red Bull Racing 1:48.085 27
2 Daniel Ricciardo Red Bull Racing 1:48.341 27
3 Nico Hulkenberg Force India 1:48.657 30
4 Sebastian Vettel Ferrari 1:49.023 28
5 Sergio Perez Force India 1:49.100 27
6 Nico Rosberg Mercedes 1:49.161 33
7 Kimi Raikkonen Ferrari 1:49.244 30
8 Romain Grosjean Haas 1:49.419 20
9 Jenson Button McLaren 1:49.419 23
10 Esteban Gutierrez Haas 1:49.648 23
11 Pascal Wehrlein Manor 1:49.716 31
12 Fernando Alonso McLaren 1:49.772 30
13 Lewis Hamilton Mercedes 1:49.782 33
14 Daniil Kvyat Toro Rosso 1:49.916 25
15 Marcus Ericsson Sauber 1:50.083 27
16 Valtteri Bottas Williams 1:50.151 19
17 Felipe Massa Williams 1:50.157 29
18 Carlos Sainz Toro Rosso 1:50.194 25
19 Kevin Magnussen Renault 1:50.375 34
20 Jolyon Palmer Renault 1:50.562 32
21 Esteban Ocon Manor 1:50.659 25
22 Felipe Nasr Sauber 1:50.719 24

eom/FIA press release