SINGAPORE - While there are rumours that the deal for Liberty Media to buy into Formula One is a “done deal”, there are differing views on what this may mean for its chief executive, Bernie Ecclestone, and how quickly the deal may be done — two factors that could affect Singapore’s negotiation to extend the Grand Prix for another five years beyond 2017.

Discussions on renewing the Singapore Grand Prix contract are already taking place, with some suggestions that this could be confirmed within the next few weeks.

Meanwhile, while some media and analysts are suggesting that the Liberty Media deal will be pushed through shortly, Ecclestone was very blunt in denying that this would be done before the Singapore Grand Prix on Sept 18. It is possible that the Singapore extension could be finalised before the Liberty Media deal is concluded.

The stake Liberty Media will be buying is the CVC Capital Partners’ stake of 35.5 per cent of Delta Topco, the company that owns Formula One.

However, due to a specific clause in the Articles of Association of Delta Topco, CVC’s stake entitles the buyer automatically to one more vote than the other directors on the board, granting instant control of the board of Delta Topco and thus Formula One.

That would mean that they could remove Ecclestone as the head of the sport if they chose to do so, by forcing a vote through the board.

Ecclestone’s own role will also play a part in the Singapore negotiations, as he was a key player in bringing the race to Singapore and is a big supporter. While some analysts believe that this deal may finally see the 85-year-old exit the sport, others say that his influence is so great that in spite of the fact he holds only  5.2 per cent of the shares, he will be very difficult to remove and that removing him may slow the momentum of the sport.

Even if he is removed, the timing issue may come into play, as the Singapore extension may be finalised before the change happens.

In terms of Ecclestone’s importance to the sport, he has been in charge of F1 for 40 years so it is almost impossible for most experts to imagine the sport without him. He has created a powerful money-making machine for Delta Topco.

However, he has not always seen eye-to-eye with the teams and many experts suggest a leadership change may be beneficial as a whole for the sport, which has seen several teams dropping out because of costs, and suggestions of breakaways by major teams. The new owner would struggle to increase revenues further without adding more races to the calendar — which would be unpopular and further increase the costs of running a team — as the broadcasting rights are already sold to all major markets.

There could be opportunities to improve marketing, merchandise and commercial partnerships to further grow the sport’s revenue base, but the new owners will have to be careful in their next step, as the bilateral agreements with the teams end in 2020 — at which point the danger of teams withdrawing will become real again.

In spite of all these possible changes, Singapore is in a strong position in negotiations to continue to host the Grand Prix, as it is one of the most popular races in the calendar with drivers and fans alike.

As the only night street race in Formula One and taking place as it does in a vibrant, cosmopolitan city with a high proportion of wealthy individuals, the Singapore Grand Prix has its own distinct brand within the Grand Prix circuit.

Most of the major Formula One commercial partners are focused on the High Net Worth market, so for them Singapore is a key target market and they would not want to lose that.

* The writer is the Clients & Markets Partner and head of the Sports Business service line for Deloitte Singapore and Southeast Asia.

FIVE KEY QUESTIONS ANSWERED

IS ECCLESTONE STAYING OR GOING?
At the moment it seems F1’s chief executive is carrying on. Even if there is a change of owners – which is not certain yet – they would be unwise to ditch the 85-year-old immediately. Formula One runs in a unique way and that is how Ecclestone has made it over four decades. To remove him overnight, during the middle of the season, would trigger carnage, with the teams squabbling like never before. What may happen is Chase Carney, an American media executive, comes in as chairman of the parent company to work with Ecclestone. For now.

WHAT ABOUT NEW OWNERS?
A deal seems close, but how close depends on what Donald Mackenzie, the chairman of CVC, the current owners, wants to do. Mackenzie has a deep affection for Formula One – his hero is Jim Clark, the two-time world champion – and has been a reluctant seller.

WHO COULD BUY IT?
John Malone’s Liberty Media, the owners of Virgin Media seemed the most likely buyer at this stage, with a valuation of around $8.5 billion (£6.4 billion). Malone has coveted the sport for several years and would hope to use his media empire to market Formula One globally like never before. But there have been plenty of other potential suitors. Stephen Ross, the owner of Miami Dolphins, has been interested, along with investors for Qatar and China.

WOULD A CHANGE OF OWNERSHIP BE GOOD FOR THE SPORT?
Yes. Many of the teams believe CVC have taken far too much money out of the sport and allowed it to stagnate. Their prize money payments have massively favoured the big teams, Ferrari, Red Bull and Mercedes, making it almost impossible for the smaller outfits to catch up.

WHAT BARRIERS ARE THERE TO A DEAL?
It is not just price. A complaint by Force India and Sauber to the European Commission means Brussels could soon be getting itself entangled in the sport. This is bad news for any new owners as it could mean the existing contracts are immediately torn up if they are ruled to be anti-competitive. THE DAILY TELEGRAPH