Liberty Media CEO Greg Maffei reiterated that Formula 1 is not for sale, and if it was it would be worth "a hell of a lot more" than $20 billion.
Earlier this year, a report from Bloomberg alleged that Saudi Arabia's sovereign wealth fund was exploring a bid for Formula 1 worth at last $20 billion, a figure well above the $4.4 billion paid by John Malone's Liberty Media for the sport in 2017.
Known as the Public Investment Fund - or PIF, Saudi Arabia's fund is an investment pool that manages more than $700 billion in Saudi government money.
PIF has invested in an array of high-profile international companies, including sports franchises like the English Premier League soccer team Newcastle United and LIV Golf which recently merged with the PGA.
Bloomberg claimed that PIF's massive bid for Formula 1 was rejected in short order by Liberty.
F1 boss Stefano Domenicali on the grid in Saudi Arabia earlier this year.
But the story led to a reaction from FIA president Mohammed Ben Sulayem who expressed his skepticism over the alleged valuation that was put forth in the report, calling it "an inflated price tag".
That did not go down well with Liberty whose lawyers fired off a letter to the FIA, accusing Ben Sulayem of meddling in the commercial affairs of Formula 1 "in an unacceptable manner" and suggesting that the FIA could be held accountable if the sport's valuation takes a hit as a consequence of the president's public remarks.
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Maffei, speaking earlier this week on the Walker Webcast, set the record straight once again regarding Liberty's stance on its F1 asset, detailing how the latter's tax structure is actually a deterrent for selling Formula 1.
"We’re a C Corp, meaning that if we sell a division, we pay corporate level tax, and then any proceeds we would pay that get distributed to our shareholders they would, in addition, pay tax," Maffei explained.
"If we were to spin Formula 1 away, create a separate company and wait a sufficient [amount] of time, [and] have no plan or intent to sell – that asset could be sold down the road, and there would be no corporate-level tax.
Liberty media CEO Greg Maffei with F1 boss Stefano Domenicali in Canada.
"So what I [am] saying is, the way we are structured today, given that tax basis, we would not be sellers.
"If we wish to be sellers, or even consider it, you’d need to do a spin and, spinning it away, there are other reasons why we might do that – it’s not just to do a sale, but the way we are structured that would be very unattractive.
Maffei made clear that even if a beneficiary tax structure allowed Liberty to part with Formula 1, a $20 billion check from a potential acquirer would not cut it.
"I’ve said this publicly before, the Saudis have been partners on a couple of things – they have a race there. Aramco is a sponsor, but they never approached us.
"And, frankly, $20 billion would not be an attractive price. It’s trading for 17/18 [billion dollars], so why 20? I’d want a hell of a lot more than that. We’re pretty bullish on the future."
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