Will Eurosport save WRC's bacon?

Vladimir Antonov

As I'm sure you're aware, the future of the WRC was in doubt towards the end of last year when North One Sport's parent company (Convers Sports Initiatives) went into administration. This was due to CSI's major backer, Vladimir Antonow being arrested due to suspected misappropriation of funds from Snoras Bank - also a sponsor of the Renault Formula 1 team of which Antonov has a 68% share.


Prosecutors have issued Europe-wide arrest warrants for Antonov and his business partner Raimondas Baranauskas and said "Both former managers of the bank Snoras have been recognised as suspects with regard to the misappropriation of property on a large scale and forgery of documents. Prosecutor General Mr D. Valys signed the European arrest warrants issued against these persons."

Convers Sports Initiatives, the firm which Antonov backs and owns the rights to the WRC, released a statement prior to the arrest warrants being issued, saying: "We are operationally unaffected by Snoras Bank entering temporary administration. It remains very much business as usual. Snoras Bank has never provided funding for the purchase of a CSI organisation, nor has it lent any money to these businesses after they have been acquired."

Antonov and Baranauskas were arrested in London in November but were conditionally bailed by Westminster Magistrates Court.

Peter Kubik, a partner at accountants UHY Hacker Young, confirmed CSI's plight via a statement.

The statement from Kubik read: "On the 25th of November 2011 my partner at UHY Hacker Young Andrew Andronikou and I were appointed as Joint Administrators to Convers Sports Initiative plc (CSI).

"CSI own a number of sports teams, media franchises and entertainment rights businesses."

"We were appointed as Administrators after uncertainty arose over the future of CSI. CSI has a number of sports related assets and we are very confident of finding interested buyers for these subsidiaries. Our aim is to ensure that the sale process is as smooth as it possibly can be."

"We will now be undertaking a period of due diligence at CSI and once that has been completed we will be in a better position to answer questions."

The FIA awarded North One Sports a 10-year agreement for exclusive media rights to the WRC, running from 2010 to 2020. That agreement was passed to CSI when the sports marketing firm acquired North One Sports in March this year.

A statement was made 29th November 2011 from North One Sport, "In response to today's announcement that parent company Convers Sports Initiatives (CSI), has been placed into administration, North One Sport would like to categorically confirm that the business is a stand-alone subsidiary and that it is not in administration."
"The priority is to ensure that North One Sport continues to successfully promote the WRC to fans, stakeholders and partners."

"Following a spectacular 2011 season we look forward to an exciting 2012 Calendar starting with the return of the iconic Rallye Automobile Monte Carlo in January."

Yesterday it was announced that Qatar, a possible saviour of threatened WRC global promoter North One Sport, had pulled out of negotiations.

This leaves Eurosport to step in and take over the television and promotion of the championship. While no official announcements have been made, North One Sport has said that the potential deal with Qatar is off. The Qatar deal, which was reckoned to have been worth millions of pounds over the coming years, was North One Sport's only hope of continuing as the promoter.

 The loss of the potential investor will cost around 40 full-time jobs and a further 20 on-event freelance staff in the world championship. North One Sport is expected to be closed as of Monday.

It is rumoured the FIA terminated North One Sport's contract as WRC rights-holder last night.

A North One source said: "It's unbelievable. We have come so close to landing this. The deal was on the table and, believe me, it would have been by far and away the best thing for the sport and for the World Rally Championship."

"What is desperately disappointing, after working so hard for 11 years on the WRC, is that nobody from the FIA picked up a phone and talked to us - and goodness knows we tried to call them. We were treated with complete contempt. I find it extraordinary given what the new investor could have done. It's a very sad day."

So fingers crossed for news on the future of North One Sport and ultimately the World Rally Championship.

One a brighter note, WRC reporter Colin Clark tweeted yesterday "No confirmation that FIA have given the rights to Eurosport, they will however film Monte, and you'd have to assume Sweden as well"