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FIA Urges Andretti Buy Don’t Build

FIA Backtracks: ‘I Advise Andretti to Buy a Team’

28/05/2024

The FIA advises Andretti to acquire an existing F1 team instead of entering as an 11th team, raising concerns about finding a seller in a stable market.

Initially, the FIA approved Andretti’s entry into F1 and handed the matter over to FOM, the commercial operator of Formula 1 via Liberty Media. However, it appears that FIA President Mohammed Ben Sulayem has decided to side with the Americans.

This development comes as the two entities managing F1 recently announced their intention to work together on a new vision for the premier motorsport category, aiming to bury the hatchet.

“I have no doubt that FOM and Liberty Media would like to see more teams, provided they are manufacturers,” Ben Sulayem told Reuters. “I would advise them to buy another team, not to come in as the 11th team.”

“I think some teams need refreshing. What’s better? Having 11 teams or having 10 strong teams? I still believe we should have more teams, but they need to be the right teams. It’s not about the number; it’s about the quality.”

“Without naming names, there are teams that struggle… struggle with performance, struggle even with management. It’s about having the right team, not missing a chance or an opportunity to see someone like GM come into Formula 1 with an engine.”

“Imagine the impact. We have three races in America. We have such a huge fan base. But we don’t have a truly notable American team. I’m very pleased that Ford is here, but imagine GM and imagine American drivers.”

Setting Dilution Fees with “Balance”

The key issue in approving a new team, if Andretti maintains his plan for an 11th team with General Motors, will be determining the dilution fees. These fees help existing teams offset the reduction in revenue shares.

A solution may be inevitable, as none of the current teams are willing to sell, with all teams financially stable: “We need to find a balance. Are 200 million dollars too low? I think 600 million dollars is something that suits the current market.”

“Peace is always a good thing; we can’t have unnecessary problems all the time. We both understand that we need to move forward, and the only way to do that is to have much more clarity between us.”

“We are in the same boat, and what we want is the sustainability of the business. We stand with FOM when it comes to business matters. We are partners and need to also overlook the minor issues and find a solution to resolve these problems.”

FIA Urges Andretti: Buy, Don’t Build. FIA Urges Andretti: Buy, Don’t Build.

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