Monday February 14th, 2000

The European Commission's ruling that Formula One's global broadcasting rights breached EU competition law could force F1 out of Europe, Silverstone chief executive Denys Rohan was quoted on Monday as saying.

The chief executive of Silverstone Circuits, which hosts the British Grand Prix, said the Commission's attempt to force a renegotiation of broadcasting rights for Formula One threatened the entire European racing industry, the Financial Times said on Monday.

The dust-up over broadcasting rights may also have been behind the latest road block in owner Bernie Ecclestone's attempt to float his Formula One empire, newspapers said.

They said Deutsche Bank subsidiary Morgan Grenfell turned down an option which would have given it a 50 percent stake in Formula One Holdings, which owns grand prix broadcasting rights.

Last October Morgan Grenfell said it had agreed to buy 12.5 percent of Formula One for about $325 million and would bring in other investors to take the holding to 50 percent.

The newspapers said potential backers EM.TV of Germany and 21 Investimenti, the Benetton family's private equity arm, had both turned down investing in Formula One.