Race for F1 rights as Kirch conks out

THE rights to Formula One racing were being fought over today as the final death throes of the Kirch media empire were played out in Germany. Kirch's Taurus Holding umbrella group was expected to opt for insolvency by tonight, with the smart money saying the motor racing rights would be acquired by the big boys of Formula One.

Leo Kirch, the media group's head, bought the rights several years ago when his dream of making Germany a pay-per-view culture seemed feasible. They will initially go to creditor banks such as Deutsche, responsible for carving up the empire.

Analysts believe insolvency is the best chance yet of ending the stand-off between Kirch and the carmakers, who have threatened to set up their own Formula One series.

DaimlerChrysler, Fiat, BMW, Renault and Ford have said they will break away from the championship in 2008. But sources in F1 say the insolvency could open the door for them to buy Kirch's 75% shareholding in Slec, the company that owns the sport's commercial rights.

That would allow the carmakers to run the sport in a way that suits them - they want it to continue to be shown on terrestrial TV. Kirch paid about $2bn (£1.3bn) for the rights but they are now worth nothing like that.

Another possibility would be for F1 boss Bernie Ecclestone, who owns the other 25% of Slec, to buy back Kirch's shares and then do a deal with the manufacturers to keep them on board.