Recently, eyes popped up when Saudi Arabia’s Public Investment Fund (PIF) made a $20 billion bid on owning Formula 1. However, what was even more surprising was Liberty media rejected this gigantic offer.
To put it in perspective, the offer received by the American company is four times more than what they originally invested. Thus, it showed that Liberty Media isn’t ready to give away its golden goose at any price, as they expect a far larger return than PIF offered.
The matter got so severe that Liberty Media also sent a legal notice and made FIA President Ben Sulayem apologize for overstepping his domain when he called the offer an inflated price tag. So, commercial rights are surely dear to the owners of the sport.
Saudi Arabia’s sovereign wealth fund Explored Bid to Buy F1 for Over $20 Billion pic.twitter.com/MHgnb1pugN
— Insider News (@InsiderNewsKe) January 20, 2023
Also read: F1 Schedule 2023: Which Race Has Been Cancelled This Year?
F1 is not for sale, claims boss
Liberty Media should be credited for F1’s expansion since it first bought its commercial rights. And now, once the profits are consistently getting in, they aren’t ready to fold and, on the contrary, are fueling in more money.
“I don’t think so,” replied Stefano Domenicali when Martin Brundle asked him if F1 is for sale. “Because we are investing in Formula 1, you see what we put in terms of real money in, for example, we bought a piece of land for $240 million to build new facilities.”
Domenicali further revealed that Liberty Media would invest up to $500 million. He even disclosed that the stakeholders consider F1 as the jewel of their portfolio.
Expansion needs to be halted by Liberty Media
F1’s popularity in recent years has only increased. Newer countries want to have hosting rights for Grand Prix races. But only to an extent, F1 drivers can travel across the world in a year to compete.
Therefore, it’s hard to go over 24 races to maintain the workload. F1 had to snub some recent offers too. South Africa, which has even been lobbied by Lewis Hamilton to be included in the F1 calendar to have some African representation, couldn’t be included after failed talks.
Other countries have lost their spots before, and now they cannot find a place after their reignited interests. Meanwhile, there are tracks with a rich racing heritage that are also threatened to face the F1’s axe.
So to whom should the Grand Prix hosting be given except for the United States? F1 nowadays has to put a lot of thought into it. This year, F1 will anyway have 23 races. That’s a cropped version of the original calendar, as China eventually decided to back out.
Also read: When Kimi Raikkonen Shocked His Title Rival With a Blazing Pole Position at The 2003 US GP
