Telmex F1?

Carlos Slim

Yesterday it was widely reported that Carlos Slim had agreed to purchase the assets of Honda’s now defunct F1 team.  For those that don’t follow Forbes’ list of richest people in the world, Mr. Slim is #2.   While Slim is involved in a variety of business from restaurants to retail to manufacturing, he is best known in the sports world as the owner of Telmex. Telmex is Mexico’s largest mobile telecom provider and has long been a sponsor of motorsports at just about every level. Currently their most high profile sponsorship is Chip Ganassi’s Grand-Am operation.

Earlier today Speedtv.com published a report in which both Honda and Slim vehemently denied that Slim had agreed to purchase the team.  Telmex stated that the reports of Slim’s purchase were “baseless and totally false.”  In addition, Honda boss Ross Brawn was quoted as saying, “any suggestion that Slim or his company Telmex are close to finalising a deal is not true.” Now, I’ve been around the block a few times and if there’s one thing I’ve found to be true in motorsports (other than the fact that every rich guy thinks he can promote a street race…) is that when both sides to a negotiation are passionately denying something, you can just about guarantee that it is in fact true.  As the saying goes, where there’s smoke, there’s fire.

I sincerely hope that Slim does buy the team.  F1 desperately needs an infusion of new ideas and solid financial support.  Too often in the past new teams have come into F1 underfunded and lacking respect in the paddock.  F1 is a boys club and Slim/Telmex would fit right in.  The deal makes perfect sense.  Slim is known to be a bulldog and while he would not run the day-to-day operations of the team, he would provide the financial stability that is necessary to be respected in F1.  Further, he would have the clout to stand up to Bernie Ecclestone, Max Mosley and the other F1 bosses — something that is desperately needed in F1 right now.   The deal makes sense for Honda as well.  Surely Honda is looking for a purchaser with a solid financial position and long-term outlook on the team.  Slim has the bottomless pot of money and Telmex’s involvement in racing should serve as a testament to Slim’s commitment to motorsport.

Keep denying it guys – to me it only confirms the strength of the rumor.  Is it too early to start thinking about the return of a Mexico GP?  Autodromo Hermanos Rodriguez anyone?…

Agree, disagree, or think my writing stinks? Let me hear about it.

Matt Breeden (SportsLawGuru.com) is an internationally respected business advisor and attorney based in Indianapolis, IN. His practice is focused on Sports & Entertainment, Intellectual Property, Commercial and Corporate Law. He represents Sports & Entertainment properties, as well as many other businesses, in a variety of matters, including: Broadcast & Digital Media Agreements, Licensing Agreements, Sponsorship Agreements, Commercial Agreements, Athlete/Driver Contracts, Insurance & Risk Management, Employment Agreements, Litigation Management, Mergers & Acquisitions, Business Formation and Corporate Governance.