Recently, the information company “Bloomberg” made a noise within the Formula 1 world. Saudi Arabia via its PIF (Public Investment Fund) is keen on shopping for the primary class of Liberty Media.
There is speak of a proposal of US$20 billion (about €18.4 billion), which Liberty is alleged to have rejected. The numbers and Saudi curiosity haven’t been formally confirmed, however the FIA has now commented on the rumours.
President Mohammed bin Sulayem stated in a sequence of tweets on Monday that the FIA was “cautious” in regards to the $20 billion price ticket given to Formula 1.
Before Formula 1 was offered to Saudi Arabia? Bin Sulayem stated the alleged provide was “extreme”.
He doesn’t identify particular names, however writes: “Any potential purchaser ought to be affordable and contemplate the good advantages of the game and have a clear, sustainable plan – not simply a lot of cash.”
“It is our obligation to think about the long run influence on promoters by way of greater racing charges and different industrial prices and any damaging influence it could have on followers,” stated the FIA president.
Liberty Media purchased Formula 1 in 2017 for US$4.4 billion, so if the reported numbers are right, it may nearly quintuple the worth at the moment.
Bin Sulayem fears that the brand new house owners will recoup the cash elsewhere.
The FIA president informed the English-language version of Motorsport.com: “To be sincere, I feel so [die Zahl] extreme. This is an exaggeration. Common sense utilization: is [die Formel 1] Is it that a lot?”
Someone who pays that a lot for a product will in some locations make it dearer “to get the cash again,” he explains. For instance, promoters could pay even greater charges to Formula 1 to host a race sooner or later.
“I’m wanting on the rationale behind it, the logic behind it. Because you want a plan,” he says of potential buyers, explaining: “So far it is simply a hearsay. But I feel the FIA ought to be a part of it. It’s going to be a negotiation or a session.” provides “.
Selling Formula 1: More than simply cash to a potential purchaser
“Because the FIA owns the championship,” he famous. However, the world motoring affiliation offered the industrial rights to Formula One in 2001, then underneath Max Mosley, for a cool US$300 million in a one-off 100-year deal.
For Bin Sulayem, the connection doesn’t match right here. “If I had $20 billion [für die Formel 1] then I feel the FIA fell brief,” he says, referring to the sale of business rights to Bernie Ecclestone on the time.
“When you concentrate on them, these numbers do not make any sense,” he insists, including that he needs “readability” on how Formula 1 will proceed. Because a potential purchaser should deliver a plan and “extra than simply cash.”
The Saudi Arabian royal household has numerous investments on the planet of sports activities
Saudi Arabia’s PIF beforehand acquired English soccer membership Newcastle United, and lately WWE was rumored to be keen on shopping for the largest wrestling league.
So far, neither Formula 1 nor Saudi Arabia have formally commented on the hypothesis in regards to the sale of the premier class.