Formula 1 gross sales? The FIA ​​president has a plan for buyers

Recently, the information company “Bloomberg” made a noise within the Formula 1 world. Saudi Arabia via its PIF (Public Investment Fund) is considering shopping for the primary class of Liberty Media.

There is discuss of a suggestion of US$20 billion (about €18.4 billion), which Liberty is alleged to have rejected. The numbers and Saudi curiosity haven’t been formally confirmed, however the FIA ​​has now commented on the rumours.

President Mohammed bin Sulayem stated in a collection of tweets on Monday that the FIA ​​was “cautious” concerning the $20 billion price ticket given to Formula 1.

Before Formula 1 was offered to Saudi Arabia? Bin Sulayem stated the alleged supply was “extreme”.

He doesn’t title particular names, however writes: “Any potential purchaser needs to be affordable and take into account the nice advantages of the game and have a clear, sustainable plan – not simply a lot of cash.”

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“It is our obligation to contemplate the long run influence on promoters when it comes to larger racing charges and different industrial prices and any unfavorable influence it might have on followers,” stated the FIA ​​president.

Liberty Media purchased Formula 1 in 2017 for US$4.4 billion, so if the reported numbers are right, it might nearly quintuple the value at the moment.

Bin Sulayem fears that the brand new homeowners will recoup the cash elsewhere.

The FIA ​​president instructed the English-language version of Motorsport.com: “To be sincere, I feel so [die Zahl] extreme. This is an exaggeration. Common sense utilization: is [die Formel 1] Is it that a lot?”

Someone who pays that a lot for a product will in some locations make it dearer “to get the cash again,” he explains. For instance, promoters could pay even larger charges to Formula 1 to host a race sooner or later.

“I’m wanting on the rationale behind it, the logic behind it. Because you want a plan,” he says of potential buyers, explaining: “So far it is simply a hearsay. But I feel the FIA ​​needs to be a part of it. It’s going to be a negotiation or a session.” offers “.

Selling Formula 1: More than simply cash to a potential purchaser

“Because the FIA ​​owns the championship,” he famous. However, the world motoring affiliation offered the industrial rights to Formula One in 2001, then underneath Max Mosley, for a cool US$300 million in a one-off 100-year deal.

For Bin Sulayem, the connection doesn’t match right here. “If I had $20 billion [für die Formel 1] then I feel the FIA ​​fell quick,” he says, referring to the sale of business rights to Bernie Ecclestone on the time.

“When you consider them, these numbers do not make any sense,” he insists, including that he desires “readability” on how Formula 1 will proceed. Because a potential purchaser should convey a plan and “extra than simply cash.”

The Saudi Arabian royal household has varied investments on this planet of sports activities

Saudi Arabia’s PIF beforehand acquired English soccer membership Newcastle United, and not too long ago WWE was rumored to be considering shopping for the most important wrestling league.

So far, neither Formula 1 nor Saudi Arabia have formally commented on the hypothesis concerning the sale of the premier class.

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