diageo

Diageo capture Vijay Mallya Force India shares as collateral on debt

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Diageo, parent company of Johnnie Walker which is set to become one of Ecclestone’s global F1 sponsors in 2016, have listed details of a dispute with Vijay Mallya in their 2015 annual report. Further, the global spirits company have now listed the Force India team as an asset of Diageo, valued at around $130m. Following the … Read more

Nurburgring lifeline, Consistancy analysis, Vettel yellow flag storm brewing in Italy, Kingfisher Airlines finally finished, Champagne & Hot Dogs in Milton Keynes

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Vote for thejudge13 at the Silverstone media awards. “Best F1 blogger” is the category if you think we are. (Link). It only takes about 1 minute to do. I believe we have 14 votes so far from thjudge13 readers.

Nurburgring: My favourite subject, the 2013 F1 calendar. It’s a week for lifelines, first HRT and now Nurburgring. To cut a long story short, in February the operators of the circuit, NAG, were given an eviction notice for non-payment of rent. Today Motorsport are reporting this matter is now ‘settled’ – how or by whom we don’t know.

2 weeks ago a spokesman for NAG said, “Formula 1 is no more at the Nurburgring”, discussions with Ecclestone were cancelled and all the other 2013 events were at risk.

Today, “Now we have to make progress in the talks with the Bernie Ecclestone toward a contract”, said Thomas Schmidt of NAG. I presume the operating company had been declared insolvent or bankrupt and the original contract is therefore no longer in force. Anyway, good luck lads – Bernie’s feeling a little down and unwanted at the moment, you may catch him in a rare moment of weakness.

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Mallya on cash hunt, Storms now set for Interlagos decider, Austin 2013 now a double clash, Cash machines answer to Korea GP losses, Coca-Cola & Lotus for 2013

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Editor’s note: Many sites run driver polls after each race and we have done a couple. I’m not sure if it’s what thejudge13 readers want though. Let me know your thoughts. I am going to run 3 driver of the year polls – I’m thinking of splitting it into 1 poll for the bottom 4, 1 for the middle 4 and 1 for the top 4 teams.

Further, the end of season is swiftly upon us, and it may be there are not articles every day from thejudge13 after next week. So to save you from visiting the site unnecessarily – why not sign up for email notification (right hand side bar – top) and you will get an email when a new article is uploaded. I have no access to the email addresses submitted as in the software there is a ‘widget’ handles this.

Just in 17:18 GMT: Red Bull maybe using some fancy rear wing end plates, that have a ruffle sticking out of the back plate. Could be a defensive aero part to create dirty air behind the car making overtaking more difficult for the car behind.

This wouldn’t be an aero compromise because the cars normally in Interlagos run a lot of wing due to the altitude and thin air. Usually at sea level this would create more drag and affect the performance of the RB car too.

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Austin will favour Red Bull, Mercedes should’ve kept Schumy not Nico, FOM wants USA GP2, McLaren supply to Force India ends, Huge Brawl, How Maldonado finds an extra 1s per lap,

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Note from the editor: Sorry folks, had a couple of days off – anyway we’re back. I notice quite a lot of you must have thejudge13 saved in your internet browser as a favourite and use this as the way of coming to the site. Over the Winter there may not be an article every day, so if you sign up for the email service (side bar on right at the top), you’ll get an email when thejudge13 has published an article/news AND only then. Anyway some news catchup. . .

Mallya sells, implications for Force India: Shares in United Spirits soared this morning 14 per cent to hit its new 52-week high after Uk-based firm Diageo Plc said that it will acquire 53.4 per cent stake in United Spirits for around $2bn. Vijay, will remain as chairman, however the real power is transferred to Diageo representatives who will take on the roles of CFO and CEO (Economic Times).

This sounds like good news, yet industry experts reckon it will cost no less than $1bn to get Kingfisher airlines back in the sky’s and Vijay has until 30th November to satisfy the Indian Aviation Authorities that the Kingfisher Airlines new business plan is sound – and clear the debts.

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Force India: How the tower of cards could collapse

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Over the past few days I’ve been asked many times and seen people enquiring on various F1 websites as to how much is an F1 team worth. Of course the answer is simple, different teams are worth vastly different amounts. An F1 team is a business venture – registered with a legal identity independent of any rich owner and subject to the business regulations from the statutory authority where they are registered.

 Valuing a business

The way business ventures are valued is highly complex and sector/performance specific. There was old 3 times profit rule that was a fundamental when I studied Finance many years ago. Yet even this most simplistic valuation methodology is fraught with danger when you dig deeper. Is that profit before or after asset depreciation, asset goodwill, taxation, one off accounting entries of substance – I could go on..and on..and on…

I guess my favourite methodology which can be proved beyond doubt and its an old adage, which says “The value of something is best measured by how much someone is actually prepared to.”

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