On Friday, reports emerged online that Liberty Media, the owners of Formula 1, had snubbed a deal made by Saudi Arabia’s Public Investment fund (PIF). The offer was around $20 billion, a 2.5 times return to what the American company originally paid to take over the sport.
Therefore, it only shows how lucrative the prospect of possessing F1 is, which has only seen an upward trajectory in the number of viewers in the recent past.
Especially in the US audience, there has been a dramatic rise ever since Netflix released its first season of Drive To Survive. Now, the current docu-series by next month will be releasing its season 5.
It only shows how successful the whole sport has been since Liberty media took over. From being under severe losses under Bernie Ecclestone, it is now only seeing profits since the Q3 of 2021. Though they are marginal, both parties see a huge potential in F1’s earnings.
Also read: Lewis Hamilton Confident of Breaking the Bad Omen of Not Winning Races After 300 Starts
Formula 1 rejected the bid; WWE is still there
Liberty Media bought F1 in 2016 for $4.4 billion. But a colossal return from Saudi Arabia wasn’t enough. However, the PIF isn’t only interested in buying F1. They have reportedly set their eyes on WWE too.
Wrestling entertainment is pretty huge in the middle-east nation, with the WWE signing a 10-year-long agreement to do two events there. The deal is worth $100 million.
It has been reported that they will bid around $6.5 billion. The same fund currently owns the Premier League side Newcastle United. They also finance the LIV Golf, but it is yet to get media rights in the US, which could be the biggest hurdle in acquiring the WWE.
Because it puts forth a question of whether the US media companies are interested in partnering with PIF. Considering the sports-washing allegations against Saudi Arabia, it could be a good enough reason, but how long will it hold water against a fund with $620 billion in assets?
A wise decision by Liberty Media?
The $20 billion bid would have been easily the biggest sports deal ever. But the current owners of the organization dared to snub it and trust their current progress.
Moreover, after handling the sport for over six years, Liberty Media will probably see a higher valuation for the sport in the coming years. Maybe even double what was offered this time.
So in all probability, the owners of F1 aren’t losing anything with this deal and have already started making money. If it had happened a couple of years ago during COVID-19, maybe things could have been different.
Also read: Formula 1 Cars 2023 Reveal: When Will Williams Release Their Car?
