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 by means of its PIF (Public Investment Fund) is inquisitive about shopping for the primary class of Liberty Media.

There is speak of a proposal of US$20 billion (about €18.4 billion), which Liberty is claimed 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 tweeted 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 provide was “extreme”.

He doesn’t title particular names, however writes: “Any potential purchaser needs to be cheap 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 responsibility to think about the longer term influence on the promoters when it comes to greater racing charges and different industrial prices and any detrimental 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 virtually quintuple the worth 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 trustworthy, I believe 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 might pay even greater 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 believe 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 below 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 believe the FIA ​​fell quick,” he says, referring to the sale of economic rights to Bernie Ecclestone on the time.

“When you concentrate on them, these numbers do not make any sense,” he insists, including that he additionally 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 numerous investments on the earth of sports activities

Saudi Arabia’s PIF beforehand owned English soccer membership Newcastle United, and WWE was lately rumored to be inquisitive about shopping for the world’s largest 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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