FIA President calls F1’s $20bn value an “overvalued price.”
FIA President Mohammed Ben Sulayem advises that anyone considering purchasing Formula 1 should take into account the overall well-being of the sport and use good judgement in their decision making.
According to Bloomberg, the Saudi Arabian wealth fund considered the possibility of purchasing Formula 1 for $20 billion in 2021.
The reported price tag is significantly higher than the amount paid by current owners Liberty Media in 2017, which was more than five times lower.
Recently, Formula 1’s popularity has increased significantly, largely due to the success of the Netflix documentary series “Drive to Survive.”
Due to the elevated attention and global coverage, the worth of the sport is likely to have risen since Liberty Media’s acquisition, however, FIA President Ben Sulayem says that the FIA is being careful with regards to the reported value.
In a statement on Twitter, Ben Sulayem suggested that any potential new owners should keep in mind the well-being of Formula 1 for both venues and fans if such an amount is to be used to acquire the sport.
“As the guardians of motorsport, the FIA, being a non-profit organization, is cautious about the supposed overvalued price of $20 billion for Formula 1,” he wrote.
“Potential buyers are encouraged to use good judgement, think about the overall well-being of the sport and present a solid, sustainable plan, not just a large sum of money,” he stated.
“It is our responsibility to evaluate the potential future effects on organizers in terms of higher hosting fees and other business expenses, and any negative influence it could have on the fans,” he said.
Formula 1 has yet to release financial results for Q4 2022 and full year, but trend is upward after Covid impact, future looks bright for Formula 1 and shareholders.
Recently, Saudi Arabia has expanded its sports portfolio by organizing major boxing and golf events, as well as hosting a Grand Prix in Jeddah.
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