FIA President warns ‘alleged’ bidder Saudi Arabia to use ‘common sense’ amid talks of $20B offer for F1

Saudi Arabia's sovereign wealth fund reportedly considered attempting to buy Formula 1, which it valued at over $20 billion. But FIA President, Mohammed Ben Sulayem warns any potential buyers to come up with a good plan - and not just money.

FIA President warns ‘alleged’ bidder Saudi Arabia to use ‘common sense’ amid talks of $20B offer for F1

FIA President Mohammed Ben Sulayem

Reports recently emerged that Saudi Arabia’s sovereign wealth fund, the so-called ‘Public Investment Fund’ had considered offering to buy Formula 1. The PIF apparently valued F1 at over $20 billion, including debt. However, this supposed offer faltered in the early stages as Liberty Media were not interested in selling. But if their minds should change, the PIF would be one of the prime candidates for a potential F1 takeover. In any case, any bidders have been warned by FIA President Mohammed Ben Sulayem to utilize ‘common sense’.

The PIF is also the majority owner of Newcastle United, a club in the English Premier League. But it’s clear that F1 would be their flagship investment – especially considering the alleged $20 billion price tag. There have been allegations of ‘sports washing’ against Saudi Arabia, who have recently started to open up to more Western forms of entertainment. In this particular instance, FIA chief Ben Sulayem’s area of concern is for any bidder to have a plan that is good for the sport.

Speaking for the FIA (as their President) in a recent tweet, the Emirati wrote: “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. 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.”

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Ben Sulayem added: “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.” This, of course, points to the fact that with this potential $20B takeover, the prices may also go up in order to recover their investment. In a sport that is already considered to be for ‘rich people’, this would be further reputational and potential commercial damage.

Read More: Saudi Arabia’s Wealth Fund considered an attempt to buy Formula 1 – Reports

What will be the effect of a Saudi Arabian takeover of Formula 1?

Pictured: The 2021 Formula 1 Saudi Arabian Grand Prix
Pictured: The 2021 Formula 1 Saudi Arabian Grand Prix

Formula 1 has boomed in America since Liberty Media’s acquisition, back in 2017. Helped along by the Netflix docuseries ‘Drive to Survive’, the sport continues to grow in popularity. There will be three Grands Prix held in the USA in the upcoming season, including the new Las Vegas Grand Prix – an event in the vein of Monaco and Singapore.

At the same time, they have also been expanding in other regions outside Europe, such as Asia, and in particular – the Middle East. There are currently four Grands Prix scheduled to be held in the Arabian Peninsula in 2023. With a Saudi takeover, this could expand further, and the trend of ‘upsizing’ in Asia is likely to continue in the future. This will be the most obvious effect of a Saudi takeover. But as the FIA chief Mohammed Ben Sulayem says, any ‘adverse effects’ for fans, such as increased ticket prices, must be considered.

Apart from that, we can only guess. You could also expect the involvement of Saudi Aramco, which is currently the sport’s ‘global energy partner’, to grow further. Considering how much Formula 1 has progressed under the leadership of Liberty Media, and how much it is likely to grow, it will be a lucrative prospect to acquire it. But as the report from Bloomberg stated, the deal faltered early.

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