Mohammed Ben Sulayem cautions media reports about tagging F1 with a value of $20 billion which could lead to adverse impact.
A Bloomberg report claimed of discussions between Liberty Media and Saudi Arabia’s sovereign wealth fund of a potential sale of F1 at a value of $20 billion last week. They noted that it was rejected but it created a frenzy especially at a price value.
Liberty Media bought F1 for $4.4 billion in 2017 from Bernie Ecclestone and CVC and a value of $20 billion would mean a massive return on investment for the American owners. But the number seems exaggerated as per insiders as is being reported.
And this has led FIA President Sulayem to voice his concern and throw in a caution about such exaggerated value. He feels that potential buyers needs a sustainable plan to run F1 and not just throw in money which will have an adverse impact.
He thinks this will increase hosting fees along with increment in other costs, which will in turn raise the ticket pricing and also viewing prices thereby burning the pockets of the F1 fans. Sulayem took to Twitter to raise such points in public.
“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,” said Sulayem. “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,” summed up Sulayem.
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