F1 chiefs have sent a letter to teams along with the FIA legal department following the caution thrown by Mohammed Ben Sulayem.
After a report from Bloomberg noting of a potential sale of F1 at a value $20 billion to buyers from Saudi Arabia, FIA President Sulayem threw in a caution note over the inflated pricing of the sport which would bring adverse impact towards its.
He feels such pricing is not sustainable for F1 as it will increase burden on the fans with higher hosting price leading to increased ticket price and viewing experience. While there are reports of the sport turning down the offer, it was enough to create ‘controversy’.
In a retaliation to Sulayem’s caution, F1 has written a letter – as seen by Sky News – to the teams and also FIA legal department. The letter has a warning for Sulayem and the regulatory body of interfering into the commercial aspects of the sport.
Even though the FIA has leased the F1 rights, the deal had a clause of the governing body to only regulate and not interfere in the commercial deals which Sulayem seem to have touched on with his series of tweets on Monday evening.
The letter has been marked by F1’s legal head Sacha Woodward Hill and Liberty Media’s Renee Wilm to the FIA. “Formula 1 has the exclusive right to exploit the commercial rights in the FIA Formula One World Championship under a 100-year deal,” excerpt from the letter read.
“Further, the FIA has given unequivocal undertakings that it will not do anything to prejudice the ownership, management and/or exploitation of those rights. We consider that those comments, made from the FIA president’s official social media account, interfere with those rights in an unacceptable manner.”
Furthermore, implying things like, “that any potential purchaser of the Formula 1 business is required to consult with the FIA is wrong”, and that Sulayem had “overstepped the bounds of the FIA’s remit, saying that any individual or organisation commenting on the value of a listed entity or its subsidiaries, especially claiming or implying possession of inside knowledge while doing so, risks causing substantial damage to the shareholders and investors of that entity, not to mention potential exposure to serious regulatory consequences.
“To the degree that these comments damage the value of Liberty Media Corporation, the FIA may be liable as a result,” it summed up. Even before the start of the 2023 F1 season, the relation between the two seems to have hit a low with a ‘public’ spat. It has been a rocky start to Sulayem’s tenure and it continues to be like that. He already has spoken against F1’s reluctance with regards to Andretti-Cadillac entry bid as this joins the list.
Here’s Mohammed Ben Sulayem on inflated sale price
Here’s FIA on F1 structure
Here’s team bosses on penalty for yellow/red flag
Here’s F1 sharing about qualifying format and more
Here’s first look at Drive to Survive S5
Here’s Mohammed Ben Sulayem surprised by adverse reaction to new teams
Here’s F1 2023 entry list
