Competition This Week.

TV tales

A German media group is now the majority owner of Formula One. EM.TV & Merchandising exercised its option to acquire 75 percent of the company that holds the F1 commercial rights, and the automobile manufacturers that participate now fear there could be an attempt to put F1 races exclusively on pay-per-view TV. Since March 2000, EM.TV has owned 50 percent of SLEC Holdings, promoter Bernie Ecclestone's family trust that holds the commercial rights to F1 until 2110. An option was included giving EM.TV the right to purchase an additional 25 percent, which it had to exercise before midnight on Feb. 28, 2001. Struggling to survive following a dramatic plunge in its share value, EM.TV is in the midst of a rescue bid by Germany's largest pay-per-view TV broadcaster, Kirch Gruppe. Evidently EM.TV and Kirch are close to finalizing their own deal, at a reported cost of $987 million. But two of the carmakers competing in F1 warned that they could set up a rival world championship series if this deal gave Kirch effective control of F1. A consortium of five of these companies, BMW, DaimlerChrysler, Fiat, Ford and Renault, had been in negotiation with Ecclestone with a view to acquiring 35 percent of SLEC Holdings itself. Jurgen Hubbert, the DaimlerChrysler main board member responsible for the Mercedes-Benz brand, and Wolfgang Reitzle, the CEO of Ford's Premier Automotive Group, said that the manufacturers could launch their own series if Kirch moved to put Grand Prix coverage exclusively on pay-per-view. Kirch has attempted to reassure the manufacturers by indicating that it would be willing to sell off part of EM.TV's 75 percent stake in SLEC, but conspicuously not by undertaking to maintain free-to-view TV coverage. Kneifel in charge

CART has a new chief steward, and it isn't Steve Chassey (AW, Feb. 5). The series and the former racer turned insurance executive couldn't find suitable terms that allowed Chassey to keep his home in Indianapolis. After CART's effort to land Chassey and former car owner Steve Horne, the successful candidate snuck up even on those paying attention: He is veteran road racer and all-round tall guy Chris Kneifel. Kneifel has been racing 22 years. His most recent visit to victory circle came in February, when he shared the Daytona-winning Corvette with Ron Fellows and Johnny O'Connell. Kneifel, 39, has won races in three different decades in at least five series, from Atlantic to Trans-Am. He made 19 starts in CART between 1982 and 1984 and two in the Indianapolis 500. At six feet, six inches, he's the tallest driver ever to climb in a Champ car. Kneifel was to drive a Corvette at the ALMS season opener at Texas Motor Speedway, but withdrew when his new job with CART was announced the day before. He plans one more race, the 12 hours of Sebring, before hanging up his driving shoes. Kneifel's appointment sends former chief steward Kirk Russell back to the singular job of CART's director of competition, one to which everyone seems to think Russell was better suited. In that capacity Russell enforces rules and oversees technical issues. Sue the lice!

Ah, the lawsuit. It's as much a part of big business as the IPO or the ...