David Rosenthal: evaluation

Transcript context

…FOPA is just a guy. You're just saying, and 23% of it goes to me, a thing I fully own. Yes, this company that I created. Bernie is a master at playing everyone off here. This split gets negotiated before Bernie really ramps up running bidding processes in each country for the TV rights. He actually renews the European Broadcasting Union deal for another three year term to sort of keep growing the sport and not value maximize just yet because he doesn't want a lot of money to start going to the other organizations. That was the second Concorde Agreement. When the third Concorde Agreement comes up for negotiation in 1992, Bernie goes to the FIA and he's like, you guys, you're getting the TV money, but you can't be happy because it's really not that much. And there's a lot of complexity here. You're a international organization, what if I just make this easy for you? I'll pay you a flat fee. Rather than you taking 30%, I'll pay you $5 million a year going up by 1 million every year, up to 9 million at the end of this term in exchange for your percentage of the TV rights. This will be way easier for you. And the FIA is like, great, that sounds like a great deal. Let's do that. So Bernie now has the 23%, he originally had plus another 30% that used to belong to the FIA for which he has to pay 5 to $9 million a year. And you can actually imagine if you're an international regulatory standards body, the fact that a guaranteed payment is being made available to you so you're not taking risk anymore might actually be great.…

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