Bernie Ecclestone didn’t just lead Formula 1- he owned it. His creation of Formula One Management (FOM) in the 1980s gave him unprecedented control, turning the sport into a financial juggernaut.
The rise of Bernie Ecclestone to the pinnacle of Formula 1 was not just a story of business acumen. It was a masterclass in ruthless strategy, political manoeuvring and calculated power grabs.
Bernie Ecclestone: The Birth of ‘F1 Supremo’
Ecclestone’s journey began in the 1950s as a modest driver. But a crash at the 1951 Monaco Grand Prix halted his racing dreams. By the 1970s, he had transitioned into team ownership, acquiring Brabham Racing in 1972. However, Ecclestone wasn’t content with just running a team: he wanted more.
At the time, F1 was a disorganised collection of teams, promoters and race organisers with no centralised commercial structure. Ecclestone saw an opportunity.
“Bernie Ecclestone turned Formula 1 into one of the largest sports in the world” https://t.co/gnJ8yl6sw1 pic.twitter.com/xQK8MNNzKu
— BBC Sport (@BBCSport) January 24, 2017
First, he formed the Formula One Constructions’ Association (FOCA) alongside fellow team owners like Frank Williams and Colin Chapman. This positioned Ecclestone as the teams’ negotiator against the sport’s governing body, Fédération Internationale de l’Automobile (FIA).
However, his true masterstroke came when he realised that whoever controlled the TV rights controlled the sport. In 1981, the Concorde Agreement was signed, unifying Formula 1’s governance and establishing a stable system for revenue sharing and rules.
Following this, Ecclestone formed FOM to centralise F1’s commercial fights, Before this, individual promoters negotiated TV deals haphazardly. Ecclestone changed this.
Control and Expansion of FOM
Bernie structured FOM as the sole entity responsible for negotiating broadcast deals, ensuring all revenue flowed through his organisation first. Teams received a portion of the profits, but the majority remained with FOM.
The FIA retained regulatory authority, but the real power now rested with FOM. Ecclestone’s contracts were famously rigid, locking in broadcasters, circuits, and teams under terms that favoured his control above all else.
With the establishment of FOM, Ecclestone’s grip tightened. His strategy was simple: maximise revenue, minimise costs, and eliminate competition. Formula 1’s business model became ruthlessly efficient.
Television rights were sold to the highest bidder, often prioritising paid networks over free-to-air broadcasters. This maximised revenue but gradually eroded the sport’s mainstream accessibility.
Race promoters faced equally strict terms. Historic European circuits struggled under heavy sanctioning fees, while new venues in wealthy markets like Bahrain and Abu Dhabi were welcomed. This prioritised their willingness to pay premium prices.
A combination of financial incentives and divide-and-rule tactics kept teams in line. Ferrari, as the sport’s most iconic team, received special concessions to ensure their loyalty. Other teams were left to negotiate individually, preventing any unified opposition to FOM’s dominance.
By the 2010s, cracks began to show as teams grew frustrated with the lack of financial transparency. Pressure began to build for a more equitable structure. The sale to Liberty Media in 2017 marked the end of Ecclestone’s direct control, but the framework he built remains largely intact.
Though no longer at Formula 1’s helm, Ecclestone remains a key figure in the paddock. The 93-year-old even made an appearance at the 2025 Austrian Grand Prix podium ceremony.
His sharp wit and unfiltered opinions cut through the sport’s corporate polish. Never one to mince words, he continues to offer provocative takes on current events. Whilst Liberty Media may be in control today, Ecclestone’s shadow still looms large over the sport he built.
Ecclestone’s legacy is undeniable. Through FOM, he transformed Formula 1 from a fragmented collection of races into a tightly controlled global enterprise. His methods were often controversial, but the results speak for themselves. Shaped by his vision, the sport became one of the most lucrative in the world.
