Netflix execs must have been eager to get their hands on the latest Formula 1 dispute. The clash does not revolve around a title fight between Lewis Hamilton and Max Verstappen. Nor did it focus on the savage competition for seats, which, for example, saw Daniel Ricciardo crash the grid in his new role as Red Bull’s third driver. In fact, the latest commotion wasn’t even this season, it was winter, and not a single engine was running. This is a purely political battle between Liberty Media, which owns the commercial rights to F1 through the Formula 1 group, and the International Automobile Federation (FIA). At stake is the management of a business that has gone from idle to turbocharged in just three years and has seen its value soar accordingly.
The fuse was lit last Monday by FIA president Mohammad bin Sulayem, who expressed his concern for the Bloomberg The report mentioned a $20 billion offer from Saudi Arabia’s Public Investment Fund (PIF) to take control of the Formula 1 group was rejected by Liberty. Riyadh’s aggressively touting policy of bidding for major sporting events in a public image campaign, aimed at using the exposure they provide to project a softer image, preceded Saudi Arabia’s attempt to secure a juicy global prize like F1. The Spanish and Italian football federations have hosted the Super Cup in the Saudi capital in recent years, the Dakar Rally moved from South America to the Arabian desert in 2020, and F1 added the Jeddah circuit to its calendar in 2021, a year of It also saw PIF complete the takeover of Premier League club Newcastle United.
Motorsport’s guardian, the FIA, a not-for-profit organization, is wary of F1 being accused of inflating its $20 billion price tag. (1/3)
— Mohammad bin Sulayem (@Ben_Sulayem) January 23, 2023
Since Liberty Media bought F1 from private equity firm CVC Capital Partners for $4.6 billion in 2017, few sports have exploded in popularity.Since then, Grands Prix has become common through several factors: the popularity the Netflix series provides drive to survive; the consolidation of the all-important US market, where up to three events will take place in 2023 (Austin, Miami and Las Vegas); Champion Max Verstappen has emerged as the ideal actor to play the role of Lewis Hamilton’s rival to create a rivalry worthy of the sport’s golden age. Even so, PIF’s offer represents a huge increase in the value of the acquisition, and in the short six years of Liberty Media’s ownership, the difference has prompted the FIA boss to appear on the scene.
“As the guardian of motorsport, the FIA, as a non-profit organisation, is wary of F1’s alleged $20 billion price tag,” tweeted Ben Sulayem. “Any potential buyer is advised to use common sense, consider the greater good of the sport, and develop a clear, sustainable plan – not just a lot of money. It is our responsibility to consider the impact of increased hosting fees and other business costs on sponsorships people, and any adverse effects it may have on fans.”
In response, Liberty Media sent a strongly worded letter from its legal department last Tuesday, suggesting that Ben Sulayem was overstepping his authority on matters that were neither his responsibility nor the organization he chairs. “Under a 100-year agreement, Formula One has the exclusive right to use commercial rights in the FIA Formula One World Championship,” the letter read. “Furthermore, the FIA expressly undertakes not to do anything that would compromise the ownership, management and/or exploitation of these rights. We believe that these comments from the official social media accounts of the FIA President interfere in an unacceptable manner. right.”
With the grid currently at a standstill, F1’s good health at a sporting level cannot hide the wounds between the FIA, Liberty and teams. Decades of understanding since the squabbles that marked the World Championships agenda in the 1980s appear to have been left behind. With no allies to voice their support publicly and several aspirants to take his place, bin Sulayem’s position began to falter. Just this week, a British Liberal MP called for his order, accusing him of recklessly ignoring a letter signed by 90 MPs sent to him 10 months ago and highlighting the consequences of taking F1 to a country where human rights are not respected .
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