FIA president calls alleged $20B valuation of F1 'inflated price tag'

40

FIA president Mohammed Ben Sulayem says he is skeptical of the $20B valuation allegedly put on Formula 1 by Saudi Arabia sovereign wealth fund, calling the number an "inflated price tag".

Last week, a report from Bloomberg claimed that Saudi Arabia's Public Investment Fund had tabled last year an offer to acquire Formula 1 from Liberty Media for an amount in excess of $20 billion, including debt.

Such a deal would equate to a handsome return on investment for the sport's current commercial rights holder as Liberty bought Formula 1 lock, stock and barrel for $4.4 billion in early 2017.

Despite the alleged hefty premium, Liberty rejected the offer and made clear to Saudi Arabia's PIF that Grand Prix racing was not for sale.

Read also: Saudi Arabia wealth fund explored $20M bid for Formula 1

On Monday, Ben Sulayem took to Twitter to address the rumors while also urging any potential suitors to "consider the greater good of the sport" and to engage with a "sustainable" plan and not just with money.

"As the custodians of motorsport, the FIA, as a non-profit organisation, is cautious about alleged inflated price tags of $20bn being put on F1," wrote the FIA president in three separate tweets.

"Any potential buyer is advised to apply common sense, consider the greater good of the sport and come with a clear, sustainable plan – not just a lot of money.

"It is our duty to consider what the future impact will be for promoters in terms of increased hosting fees and other commercial costs, and any adverse impact that it could have on fans."

On the one hand, Ben Sulayem's tweet adds credibility to the report that Saudi Arabia engaged in talks with Liberty Media, otherwise why bother to even publicly address the issue.

On the other, it's anybody's guess what valuation may have been discussed between the two parties.

Formula 1 has yet to release its financial results for Q4 2022 and for the full calendar year, but with numbers once again on the rise after the sport's Covid-impacted period, and with Grand Prix racing's popularity and global profile still growing, the future looks healthy and prosperous for Formula 1 and its shareholders.

Only time will tell if Formula 1 receives an offer it cannot refuse.

Keep up to date with all the F1 news via Facebook and Twitter

Phillip van Osten

Motor racing was a backdrop from the outset in Phillip van Osten's life. Born in Southern California, Phillip grew up with the sights and sounds of fast cars thanks to his father, Dick van Osten, an editor and writer for Auto Speed and Sport and Motor Trend. Phillip's passion for racing grew even more when his family moved to Europe and he became acquainted with the extraordinary world of Grand Prix racing. He was an early contributor to the monthly French F1i Magazine, often providing a historic or business perspective on Formula 1's affairs. In 2012, he co-authored along with fellow journalist Pierre Van Vliet the English-language adaptation of a limited edition book devoted to the great Belgian driver Jacky Ickx. He also authored "The American Legacy in Formula 1", a book which recounts the trials and tribulations of American drivers in Grand Prix racing. Phillip is also a commentator for Belgian broadcaster Be.TV for the US Indycar series.