The president of the FIA, Mohammed Ben Sulayem had to intervene on Twitter to defend Formula 1 and Liberty Media after what was leaked onoffering by the Saudi Arabian sovereign wealth fund to purchase the rights of the highest category. An offer that, even if rejected, put on the plate well 20 billion dollars, 5 times as much as Liberty Media disbursed in 2017.
Formula 1 it is not mere business
Formula 1 is slowly recovering after the dark period of the pandemic from which also the financial regulation was born, the Budget Cap, which in its first year of application also encountered some problem. A regulation which, although necessary, has highlighted the complexity of the ecosystem and its actors. The category under Liberty Media's wing has grown attracting interest from different markets, not least that of Saudi Arabia, and in general the Arab one which is already very present with facilities and sponsors.
To ensure the survival of the ecosystem, all the actors who are part of it must collaborate and contribute to growth. Even though it does not depend directly on the FIA, the commercial question is still a topic that has a heart, being extremely important. Selling Formula 1 is not a process that can be solved by investing large sums, and commercial rights bring with them various responsibilities which, if not respected, risk having a devastating impact on fans and the category. From the words of Mohammed Ben Sulayem comes a memorandum to anyone who wants to get their hands on F1.
"As a motorsport tutor – clarified Ben Sulayem- the FIA, as a non-profit, it is cautious about the allegedly inflated $20 billion valuation associated with Formula 1. Any prospective purchaser is advised to apply common sense, consider the good of the sport and present a clear and sustainable plan, not just a lot of money. It is our duty to consider what the future impact might be which could fall on the promoters in terms of increased costs and the negative impact it could have on fans”.
A devastating impact
A 20 billion dollar offer, however much the commercial value of F1 may have grown, is an unsustainable investment and the fact that such an offer has been reached represents a big alarm for the category, and for its entire ecosystem. which would see an increase in expenses on all fronts, starting with the cost of organizing the events by the promoters. In this matter, the FIA, having watched this histrionic growth of F1 with a dry mouth, having rented it to Ecclestone several years ago, will most likely continue to get in the way, to protect the sport and itself.
Source statements: Motorsport.com
