(Motorsport-Total.com) – Recently, the information company “Bloomberg” made a noise in the world of Formula 1. Saudi Arabia is curious about shopping for Liberty Media’s first-class by way of its sovereign wealth fund PIF (Public Investment Fund).
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Crown Prince Mohammed bin Salman of Saudi Arabia and Formula 1 boss Stefano Domenicali
There is discuss of a US$20 billion (about €18.4 billion) provide, which Liberty has rejected. The numbers and Saudi curiosity haven’t been formally confirmed, however the FIA has now commented on the rumours.
President Mohammed bin Sulayem tweeted on Monday that the FIA was “cautious” about the $20 billion price ticket given to Formula 1.
He doesn’t identify particular names, however writes: “Any potential purchaser needs to be cheap and contemplate the nice advantages of the sport and have a transparent, sustainable plan – not only a lot of cash.”
Bin Sulayem mentioned the alleged provide was “extreme”.
“It is our obligation to contemplate the future influence on the promoters in phrases of increased racing charges and different business prices and any adverse influence it might have on followers,” mentioned the FIA president.
Liberty Media purchased Formula 1 in 2017 for $4.4 billion, so if the reported numbers are right, it may nearly quintuple the value at the moment. Bin Sulayem fears that the new house owners could recoup the cash elsewhere.
The FIA president advised English-language Motorsport.com about the proposed proposal: “To be sincere, it’s [die Zahl] extreme. This is an exaggeration. Use of widespread sense: This [die Formel 1] Is it that a lot?”
Someone who pays that a lot for a product will in some locations make it costlier “to get the a refund,” he explains. For instance, promoters could pay even increased charges to Formula 1 to host a race in the future.
“I’m taking a look at the rationale behind it, the logic behind it. Because you want a plan,” he says of potential patrons, explaining: “So far it is only a hearsay. But I believe the FIA needs to be half of it. It’s going to be a negotiation or a session.” provides “.
Not simply cash to a possible purchaser
“Because the FIA owns the championship,” he famous. However, the world motoring affiliation bought the business rights to Formula One in 2001, then below Max Mosley, for a cool US$300 million in a one-off 100-year deal.
For Bin Sulayem, the relationship doesn’t match right here. “If I had $20 billion [für die Formel 1] then I believe the FIA fell quick,” he says, referring to the sale of business rights to Bernie Ecclestone at the time.
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“When you consider them, these numbers do not make any sense,” he insists, including that he additionally needs “readability” on how Formula 1 will proceed. Because a possible purchaser should deliver a plan and “extra than simply cash.”
Saudi Arabia’s PIF beforehand owned English soccer membership Newcastle United, and lately WWE was rumored to be curious about shopping for the world’s greatest wrestling league.
So far, neither Formula 1 nor Saudi Arabia have formally commented on the hypothesis about the sale of the premier class.