Did Saudi Arabia want to Buy F1?

There is no doubt in anyone’s mind that Formula 1 has become one of the in-demand and popular sports franchises around the globe. The sport has gained popularity among the masses beyond imagination. After Liberty Media’s $4.4 billion takeover in 2017, the value of F1 has skyrocketed. When something gets as popular as F1, everyone wants a piece of the pie. However, there are some who want the entire pie for themselves.

Most of the credit for the sport’s popularity goes to American owners handling of the sport in their country. After the rise in popularity, F1 has seen a lot of American influence, with three races being hosted on the sub-continent. There is a group of Americans who have ambitions to join F1 as team owners as well. However, for the Saudi Arabian government, that isn’t enough.

Saudi Arabian Government’s bid to buy F1

The Saudi Arabian Public Investment Fund (PIF) is the largest sovereign wealth fund in the world. The value of the fund is estimated at around $620 billion. In recent times, the PIF has not been shy about spending its billions as well. Of late, the sovereign fund is being used to diversify the sporting portfolio of the nation.

The Saudi government is investing heavily in all sports franchises across the globe. The PIF has been fairly successful as well, with its endeavors and investments. This time around, the PIF set its sights on the premier motorsport competition. According to Bloomberg, the sovereign fund valued Formula 1 well above $20 billion, including debt.

This valuation from the Saudi PIF is 4.5x times the amount Liberty Media paid back in 2017. Albeit, the Americans were not interested in cashing on their investment just 6 years after the purchase. However, despite the rejected bid, the PIF remains interested in the asset should the Americans ever become interested in selling.

Ever since their takeover in 2017, the stock representing the F1 business has more than doubled in the past four years. This puts the market value of the sport at $15.2 billion. However, the $20 billion price tag was an inflated price tag, according to the FIA president. He made his feelings known publicly and brewed up some tension between the FIA and the F1 owners as a result.

Read More: “Please Don’t Sell Our Cash Cow”: F1 Fans React As Sulayem Tries to Hose Down $20 Billion Accusation Against the FIA

Although, Mohammed Ben Sulayem’s comments did not affect the Saudi PIF’s interest in the sport. On the contrary, the middle east will host four races in the 2023 calendar. Moreover, the Saudi Arabian Grand Prix is a fixture that will feature on the calendar until 2027.

However, that is not all.

Saudi Arabian Grand Prix is just one part of the middle eastern influence in F1 that the Saudi Government aims for

With the Saudi Arabian GP a continued fixture on the F1 calendar, the middle eastern country wants more influence in the sport. How? Let us elaborate.

There is already some influence of the country in the sport in the form of sponsors on the grid. Aston Martin partners with Saudi Arabian Oil Group, Aramco. McLaren also has Saudi partners from the real estate sector and has NEOM as their sponsor. But, the Saudi government wants more.

Apart from the $65 million/year fixture on the calendar, the Chairman of the Saudi Arabian Motor Sport Federation, Prince Khalid bin Sultan Al Abdullah Al Faisal wants a Saudi Arabian team on the grid. He revealed his ambitions as quoted by Motorsport.com.

He said, “In the future, I expect these relationships to grow and play a greater role, and that one day we will even have our own Saudi team or a Saudi driver in Formula 1.”

The Prince also hopes to convince teams to shift their base to the country as a long-term goal. “Hopefully we can bring one of the big manufacturers. We have a 20-year programme that hopefully will launch at the end of 2023, early 2024. Our aim is not just to host international events, we want to be involved more,” he revealed.

Read More: Saudi Arabia “Won’t Say No” to the Idea of Hosting Two F1 Races in the Future After This Year’s Epic Battle Between Max Verstappen and Charles Leclerc

The Saudi government wants to immerse the country in the sport. However, why are they doing that? Some critiques have an answer.

Is Saudi Arabia attempting sport-swashing with their massive investments?

Saudi Arabian PIF has made massive investments in various sports in the last few years. The PIF bought into the English Premier League football club Newcastle United FC. Additionally, the country hosted major events in boxing, golf, and, of course, F1. This is a case of “sport-swashing” according to critiques.

Sports-washing has become a popular tactic by countries to deflect attention from their human rights records. Saudi Arabia has one of the worst in the world. In fact, Lewis Hamilton said he felt duty-bound to speak about the issue of human rights while racing in Saudi Arabia. Heading into 2023, the Brit will not be able to do that because of the new FIA political speech ban.

Saudi Arabia’s heavy investments in the sporting world reflect progress and also deflect from the poor human rights conditions in the country.

WATCH THIS STORY: F1 Drivers Threaten Saudi Arabian GP Boycott After Missile Attacks

The missile attack during the 2022 Saudi Arabian GP did not help the country’s image. However, despite that, the race in Jeddah stays on as a regular fixture on the calendar.

If and when the PIF acquires the sport, the already existing influence will only increase.